JetAI (JTAI) AI Stock Analysis

• Market Cap: $9.47M
• Dividend Yield: N/A
• Average Volume (3M): 271.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: 85.82%
• EPS Growth: 28.37%
• Country: US
• Employees: 8
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Application
• EPS (TTM): -166.24
• Shares Outstanding: 2,187,001
• 10 Day Avg. Volume: 89,687
• 30 Day Avg. Volume: 271,508
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.78
• Price to Cash Flow (P/CF): -21.60
• P/FCF Ratio: 0.00
• 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: $20.00
• Price Target Upside: 361.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

JetAI's overall stock score is significantly impacted by its weak financial performance and poor valuation metrics. The company faces critical financial challenges, including high leverage and negative cash flow, and technical indicators suggest bearish market sentiment. While there are some positives in revenue growth, these are overshadowed by the need for operational improvements and strategic financial management.

Positive Factors

Investment in AI

The company is investing in AI data centers, which are considered an attractive space.

Strategic Shift

Jet.AI is selling its aviation businesses to focus on higher-margin brokerage, software, and AI segments.

Negative Factors

Financial Performance

The price target was lowered to $0.25 from $1.00 primarily due to dilution from recent offerings.

Reduced Revenue

4Q24 results reported with revenue of $3.2M, down 24% year-over-year, below the estimate of $3.7M.

JetAI Business Overview & Revenue Model

Company Description

Jet.AI Inc. primarily engages in the development and operation of private aviation platforms. The company operates CharterGPT, a booking platform that functions as a prospecting and quoting platform to arrange private jet travel with its aircrafts and third-party carriers. It also provides Flight Club API, an aviation software, that enables FAA Part 135 operators to function simultaneously under FAA Part 380 which permits sale of private jet service by the seat instead of by whole aircraft. In addition, the company offers Reroute software, that recycles aircraft waiting to return to base into prospective new charter bookings to destinations within specific distances. Further, it is involved in the aircraft charter, management, and brokerage services. The company was founded in 2018 and is headquartered in Las Vegas, Nevada.

How the Company Makes Money

JetAI makes money through a diversified revenue model that primarily includes the sale and licensing of its AI software solutions to airlines and aviation service providers. Key revenue streams involve subscription fees for access to its cloud-based platforms, one-time sales for customized AI systems, and ongoing maintenance and support services. Additionally, JetAI partners with major aviation companies and technology firms to co-develop new AI applications, which often results in shared revenue from joint ventures and collaborations. The company also engages in strategic partnerships and alliances that allow for the expansion of its market reach and customer base, further driving its earnings.

JetAI Financial Statement Overview

Summary

JetAI faces substantial financial challenges, with persistent losses, high leverage, and negative cash flow. While there have been some improvements in revenue and equity, the company needs to address its operational inefficiencies and high debt levels to stabilize and grow. Strategic cost management and cash flow improvements are critical for future sustainability.

Income Statement

The income statement shows a concerning trend of declining revenues and persistent negative margins. The most recent year saw a revenue increase of 14.8% compared to the prior year, but this follows a sharp decline from two years prior. Gross profit margins remain negative, and both EBIT and net profit margins are deeply negative, indicating ongoing operational challenges. However, the slight revenue growth provides some optimism if cost management can be improved.

Balance Sheet

JetAI's balance sheet is mixed, with a positive shift in stockholders' equity from negative to positive over the past year, indicating some improvement in financial position. However, the debt-to-equity ratio is notably high, reflecting significant leverage, though reduced from previous years. The equity ratio has also improved, suggesting better asset management, but the overall high leverage remains a risk factor.

Cash Flow

Cash flow analysis reveals significant challenges. Operating cash flow remains negative, and the free cash flow is also negative, showing no improvement in operational cash generation. There is high reliance on financing activities, which is a concern. The operating cash flow to net income ratio is unfavorable, indicating inefficient cash conversion from earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
15.03M	14.02M	12.21M	21.86M	1.11M
	Gross Profit
-628.37K	-964.62K	-178.53K	2.06M	-270.90K
	EBIT
-12.33M	-12.57M	-12.51M	-7.74M	-15.97M
	EBITDA
-12.23M	-12.57M	-12.38M	-7.60M	-15.84M
	Net Income Common Stockholders
-12.49M	-12.73M	-12.62M	-7.74M	-15.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.10M	5.87M	2.10M	1.53M	643.49K
	Total Assets
5.74M	10.80M	5.74M	4.89M	2.14M
	Total Debt
2.12M	1.02M	2.12M	2.03M	194.73K
	Net Debt
18.81K	-4.85M	18.81K	498.95K	-448.77K
	Total Liabilities
9.68M	4.28M	9.68M	4.15M	1.24M
	Stockholders Equity
-3.94M	6.51M	-3.94M	736.29K	897.47K
Cash Flow		Free Cash Flow
-5.90M	-8.23M	-3.84M	-96.04K	-2.72M
	Operating Cash Flow
-5.88M	-8.23M	-3.78M	-96.04K	-2.61M
	Investing Cash Flow
-34.39K	-2.41M	-191.00K	290.49K	-546.13K
	Financing Cash Flow
5.32M	14.41M	4.55M	689.45K	1.58M

JetAI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JTAI, the sentiment is Negative. The current price of 4.33 is below the 20-day moving average (MA) of 4.54, below the 50-day MA of 4.63, and below the 200-day MA of 23.06, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 9.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JTAI.

JetAI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AL	72 Outperform	$4.94B	13.29	5.82%	1.95%	2.65%	-35.24%
AER	72 Outperform	$17.80B	8.62	12.43%	1.07%	5.53%	-22.48%
HXL	65 Neutral	$4.28B	33.46	8.14%	1.16%	6.31%	28.25%
TXT	64 Neutral	$12.13B	15.42	11.63%	0.12%	0.14%	-5.38%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%
JTAI	39 Underperform	$9.47M	―	-593.37%	―	85.82%	28.37%
BA	39 Underperform	$121.00B	―	-162.23%	―	-14.49%	-399.90%

JetAI Corporate Events

JetAI Announces Reverse Stock Split for Nasdaq Compliance

Jet.AI Inc. announced a 1-for-225 reverse stock split to regain Nasdaq compliance and make more shares available for future issuance. Scheduled for November 12, 2024, this action won’t change shareholders’ percentage ownership but adjusts share numbers and values. Jet.AI, known for its innovative aviation and software solutions, aims to enhance stock value through this strategic move.