One-glance verdict
Undervalued
$6.56 our estimate vs market $2.60
60% below our estimate, below the bear case
Fundamentals snapshot
Air Industries Group
AIRI · ASE · Industrials · Aerospace & Defense
Current price
$2.60
52-week range
$2.30 - $3.95
Market cap
$12.61M
Balance sheet
Distressed
-0.18x Concerning
Net debt $30.05M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -10.6% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 6.7% over 3 years.
- Risk Operating margin compressed from -0.4% to -3.1% over 3 years.
What this company does
Air Industries Group
Air Industries Group makes and sells critical, high-precision parts, such as landing gear and engine components, for military and commercial aircraft. The company earns its money from large aerospace firms and the U.S. military, so its business often relies on major, long-term contracts for national defense and air travel. This makes it a key supplier in the aerospace supply chain (the network of companies that create and deliver a final product like an airplane).
How the company got here
Air Industries Group's story begins in 1941, when it started making parts for the F4-U Corsair, a fighter aircraft used in World War II. [1, 2] Over the decades, it built a reputation for making complex and crucial components for the aerospace and defense industry. The company became a publicly-traded enterprise in 2005, allowing the public to buy shares of its stock. [1] Today, it operates as a key supplier to major defense contractors and the U.S. government.
What it actually does
Think of Air Industries Group as a specialized workshop that builds critical, high-precision metal parts for aircraft, jet engines, and even submarines. [2, 5] These aren't simple nuts and bolts, but complex components essential for safety and performance, like landing gear that absorbs the shock of landing or engine mounts that hold a powerful jet engine in place. [7] The company is a Tier 1 manufacturer (a main supplier that provides parts directly to a final manufacturer) and a prime contractor (a company that gets contracts directly from the government) for the U.S. Department of Defense. [1, 2]
Complex Machining
This part of the business focuses on creating intricate and structural components for aircraft. [6, 7] Using advanced machinery, they shape large pieces of metal into essential parts like landing gear, flight controls, and arresting gear (the hooks that help jets land on aircraft carriers). [1, 2] The main customers are large aerospace and defense companies who assemble the final aircraft, as well as the U.S. government for maintaining its existing fleet. This segment is a core part of the company's operations.
Turbine Engine Components
This division specializes in making parts for the powerful engines you see on commercial and military jets, as well as for ground-based turbines used for power generation. [1, 6] These components have to withstand extreme temperatures and stress, and include items like engine mounts and other complex welded parts. [1] Customers for this segment are the major engine manufacturers and military organizations that need to maintain their engine fleets. [2] This represents the other major focus of the company's manufacturing expertise.
What management is betting on now
The company's leadership is focused on growing by investing in new equipment to make their production more efficient and to handle a wider variety of products. [1, 7] A key priority is to expand their aftermarket services (providing spare parts, maintenance, and repairs for aircraft that are already in service), which they see as a significant area for growth. [11] They are also pursuing strategic moves, such as a planned merger with Tenax Aerospace, to potentially expand their business and capabilities. [1, 10]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-95.00K
FY2024 Q4
$-985.00K
FY2025 Q1
$308.00K
FY2025 Q2
$-551.00K
FY2025 Q3
$-3.53M
FY2025 Q4
$-902.00K
FY2026 Q1
$-1.72M
FY2026 Q2
$1.46M
Revenue
$11.99M
Net income
$-846.00K
Diluted EPS
-0.18
Operating cash flow
$1.52M
Free cash flow
$1.46M
Fetching…
Sources
Revenue
$11.61M
Net income
$-1.02M
Diluted EPS
-0.21
Operating cash flow
$-1.30M
Free cash flow
$-1.72M
Fetching…
Sources
Revenue
$12.82M
Net income
$149.00K
Diluted EPS
0.08
Operating cash flow
$-598.00K
Free cash flow
$-902.00K
Fetching…
Sources
Revenue
$10.31M
Net income
$-44.00K
Diluted EPS
-0.01
Operating cash flow
$-2.62M
Free cash flow
$-3.53M
Fetching…
Sources
Revenue
$12.66M
Net income
$-422.00K
Diluted EPS
-0.11
Operating cash flow
$345.00K
Free cash flow
$-551.00K
Fetching…
Sources
Revenue
$12.13M
Net income
$-988.00K
Diluted EPS
-0.27
Operating cash flow
$1.52M
Free cash flow
$308.00K
Fetching…
Sources
Revenue
$14.92M
Net income
$-554.00K
Diluted EPS
-0.16
Operating cash flow
$-184.00K
Free cash flow
$-985.00K
Fetching…
Sources
Revenue
$12.55M
Net income
$-404.00K
Diluted EPS
-0.12
Operating cash flow
$174.00K
Free cash flow
$-95.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $6.56 vs current price $2.60
Our most-likely fair value is $6.56 a share — about 152.5% above today's price of $2.60, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $30.1M. Interest coverage -0.2x.
Net debt
$30.05M
Interest coverage
-0.18x
Air Industries Group's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
AIRI
BASELINE
Air Industries Group
Total debt $30.75M Interest coverage -0.18x This is the baseline the peer rows are being compared against.
Total debt $28.19M Interest coverage -0.11x Neither company has much profit cushion over interest right now.
Total debt $19.52M Interest coverage 0.11x This peer still has a real interest-payment cushion, while AIRI does not.
Total debt $307.00K Interest coverage 8.75x This peer still has a real interest-payment cushion, while AIRI does not.
Total debt $334.79M Interest coverage 5.82x This peer still has a real interest-payment cushion, while AIRI does not.
Total debt $193.60M Interest coverage 2.89x This peer still has a real interest-payment cushion, while AIRI does not.
What you should know
The case for and against AIRI
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -10.6% last year — the company lost money on shareholders' equity.
-
Net debt grew 6.7% over 3 years.
-
Operating margin compressed from -0.4% to -3.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
10.00x
P/B
0.70x
P/S
0.27x
EV/EBITDA
17.74x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
19.7%
Operating margin
-3.1%
Net margin
-3.8%
ROE
-10.6%
ROA
-0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
1.70x
Current ratio
1.24x
Quick ratio
0.20x
Total debt
$30.75M
Total cash
$694.00K
Growth
How the business has been compounding
Revenue TTM
$46.73M
Revenue 5Y CAGR
-5.0%
EPS TTM
-0.32
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-3.00M
Free CF TTM
$-4.67M
FCF margin
-10.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2015-11-19