Aerodrome Group (ARDM) AI Stock Analysis

• Market Cap: ₪56.80M
• Dividend Yield: N/A
• Average Volume (3M): 346.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• Revenue Growth: -49.33%
• EPS Growth: -447.21%
• Country: IL
• Employees: 93
• Sector: Services
• Sector Strength: N/A
• Industry: Education & Training Services
• EPS (TTM): -6.90
• Shares Outstanding: 95,461,580
• 10 Day Avg. Volume: 335,085
• 30 Day Avg. Volume: 346,980
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 3.70
• P/FCF Ratio: -5.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: 91.00 ▲(214.88% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is constrained primarily by weak financial performance, driven by ongoing losses and negative operating/free cash flow. Strong technical momentum provides a meaningful offset, but valuation remains pressured due to unprofitable earnings (negative P/E).

Positive Factors

Diversified revenue mix

Aerodrome's business spans product sales, MRO services and training plus government/partner contracts. This multi-channel model reduces reliance on a single cyclical market, supports cross-selling, and provides durable demand sources that can stabilize revenue composition over the next several months.

Recurring service revenue (MRO & training)

MRO and training are recurring, service-oriented revenue lines less tied to one-off equipment sales. Steady maintenance cycles and recurring training demand from airlines and defense clients can produce repeatable revenue and predictable service margins, supporting medium-term cash visibility if operational efficiency improves.

Manageable leverage

The balance sheet's moderate debt-to-equity implies financial flexibility relative to highly leveraged peers. While equity ratios have fallen, current leverage levels appear manageable, giving the company capacity to access financing or sustain operations while it addresses profitability and cash flow issues over the coming months.

Negative Factors

Steep revenue decline

A nearly 50% revenue contraction signals lost sales, contract attrition, or demand weakness. This materially reduces scale, worsens fixed-cost absorption, and undermines margin recovery prospects. Without reversal, the decline will pressure investment capacity and competitive positioning in the medium term.

Persistent unprofitability

Consistent net losses and negative operating margins indicate the business is not generating sustainable operating profits. Prolonged unprofitability erodes retained earnings, limits reinvestment, and may force restructuring or external financing, impairing long-term strategic execution if not addressed.

Negative operating & free cash flow

Ongoing negative operating and free cash flows mean the company cannot self-fund working capital, capex, or debt service. Reliance on external financing raises liquidity and refinancing risk and constrains the ability to invest in efficiency or growth initiatives over the next 2–6 months unless cash generation improves.

Aerodrome Group Business Overview & Revenue Model

Company Description

Aerodrome Group Ltd operates as a drone-based service provider and technology carrier. It serves oil and gas, renewable energy, construction and homeland security industries. Aerodrome Group Ltd is headquartered in Petah Tikva, Israel.

How the Company Makes Money

Aerodrome Group generates revenue through multiple channels. Its primary revenue streams include the sale of aerospace components and systems, which cater to commercial and military clients. The MRO services provide a significant income source as airlines and defense organizations seek to maintain their fleets effectively. Additionally, ARDM earns revenue from training programs and educational services, targeting both individuals and organizations in the aviation sector. Strategic partnerships with key players in the aerospace industry, along with government contracts in defense, further enhance its earnings potential.

Aerodrome Group Financial Statement Overview

Summary

Financial statements indicate weak fundamentals: declining revenues, persistent net losses, and negative EBIT/EBITDA margins. Cash flows are also negative, with both operating and free cash flow under pressure, outweighing a balance sheet that shows only moderate leverage.

Income Statement

The income statement reveals significant challenges with declining revenues and negative profitability. The gross profit margin has decreased over the years, and the company has consistently reported negative net income, indicating ongoing operational inefficiencies. The EBIT and EBITDA margins are also negative, reflecting substantial operating losses.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio has declined, indicating reduced financial stability. The return on equity is negative due to persistent net losses, which is a concern for long-term sustainability.

Cash Flow

The cash flow analysis highlights significant cash flow challenges, with negative operating and free cash flows. The company struggles to generate cash from operations, and the free cash flow to net income ratio is unfavorable, indicating cash flow issues that could impact future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.94M	14.45M	33.87M	24.47M	18.75M	14.00M
Gross Profit	-329.00K	990.00K	14.10M	8.26M	6.97M	6.07M
EBITDA	-24.57M	-18.52M	2.99M	-7.72M	-6.20M	-9.36M
Net Income	-30.35M	-22.80M	-545.00K	-10.90M	-8.97M	-10.13M
Balance Sheet
Total Assets	32.76M	39.09M	59.51M	62.95M	74.54M	14.33M
Cash, Cash Equivalents and Short-Term Investments	1.15M	2.52M	1.87M	14.77M	24.00M	8.88M
Total Debt	5.07M	6.04M	8.33M	10.74M	11.57M	1.18M
Total Liabilities	11.09M	10.34M	17.23M	19.56M	21.26M	5.12M
Stockholders Equity	21.68M	28.75M	42.28M	43.39M	53.28M	9.21M
Cash Flow
Free Cash Flow	-7.97M	-10.12M	-1.85M	-7.59M	-6.53M	205.00K
Operating Cash Flow	-7.91M	-9.75M	464.00K	-5.41M	-4.66M	698.00K
Investing Cash Flow	-61.00K	3.78M	-498.00K	-11.99M	-19.77M	-988.00K
Financing Cash Flow	5.09M	6.62M	-2.73M	-1.97M	39.55M	8.58M

Aerodrome Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ARDM, the sentiment is Positive. The current price of 28.9 is below the 20-day moving average (MA) of 73.08, below the 50-day MA of 62.28, and below the 200-day MA of 41.89, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 26.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ARDM.

Aerodrome Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ARDM	48 Neutral	₪56.80M	-2.70	―	―	-49.33%	-447.21%
G107	40 Underperform	₪24.47M	-27.33	―	―	26.93%	71.40%