Air Industries Group (AIRI) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Air Industries's EV/EBITDA of 81.4 is above its 5-year median of 67.0.

P/B below the industry

Air Industries's price-to-book of 0.63 is below the Aircraft and Parts median of 2.69.

Trading below fair value

The share price of $2.50 is below our fair value estimate of $10.06.

Margin of safety over 20%

The price is 75.1% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.9% over the last twelve months; the Aircraft and Parts median is 17.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 20.8% over the last twelve months, against 17.6% a year earlier.

Return on equity under 15%

Return on equity was -4.1% over the last twelve months and averaged -5.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 0.9%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Air Industries's return on equity of -4.1% is below the Aircraft and Parts median of 9.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was -1.5% over the last twelve months, against a 5-year average of -1.7%.

Net margin below the industry

Air Industries's net margin of -1.5% is below the Aircraft and Parts median of 5.5%.

High debt

Debt is 133% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 181% five years ago to 133%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 0.7% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 0.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.29 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is -0.40; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Air Industries has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.