One-glance verdict
Undervalued
$27.22 our estimate vs market $5.67
Wall Street consensus: $15.67 (-42.4% lower than our fair-value estimate)
79% below our estimate, below the bear case
Fundamentals snapshot
AIRO Group Holdings, Inc.
AIRO · NGM · Industrials · Aerospace & Defense
Current price
$5.67
52-week range
$4.53 - $13.95
Market cap
$178.92M
Balance sheet
Healthy
-2.94x Concerning
Net cash $16.01M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 17.3% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -3.6% last year — the company lost money on shareholders' equity.
What this company does
AIRO Group Holdings, Inc.
AIRO Group Holdings sells drones, airplane parts (avionics), pilot training, and electric flying vehicles for carrying cargo. Their money primarily comes from selling these products and services to military and commercial customers, which is important because it shows how they make money from different parts of the aerospace and defense world.
How the company got here
AIRO Group Holdings, Inc. is a relatively new company, incorporated in 2021, but it's built on a foundation of established aerospace and defense expertise. It operates internationally, with a presence in the United States and Europe. The company was formed to bring together various advanced capabilities within the aerospace and defense sector, aiming to be a comprehensive solutions provider. Its strategic goal is to leverage these combined strengths to address evolving market needs in areas like unmanned systems and electric aviation.
What it actually does
AIRO Group Holdings is a company focused on advanced technology for the aerospace and defense industries. Think of them as building sophisticated tools and providing critical services for aircraft and related systems. This includes everything from the brains and navigation systems inside planes and drones to the actual flying machines themselves, as well as the training needed to operate them. They are also working on the future of flight with electric vertical takeoff and landing (eVTOL) aircraft.
Drones
This part of AIRO Group Holdings is all about unmanned aerial vehicles, commonly known as drones. They are involved in the entire lifecycle of these machines, from designing and building them to selling them. These drones can be used for a variety of purposes, including military applications, surveillance, and potentially commercial uses. This segment represents a significant area of focus as drone technology continues to advance and find new applications.
Avionics
The Avionics segment focuses on the electronic systems used in aircraft. This includes the 'brains' and 'nervous system' of planes, drones, and eVTOLs, providing crucial functions like navigation, flight control, and communication. They develop and manufacture components such as flight displays, which show pilots important information, and GPS sensors that help determine the aircraft's location. This segment is vital for ensuring safe and efficient flight operations across various types of aircraft.
Training
This segment provides specialized training services, primarily for military pilots. Their offerings include simulating combat scenarios, such as adversary air support and close air support, which helps pilots practice in realistic, yet safe, environments. They also offer intelligence, surveillance, and reconnaissance (ISR) training, as well as pilot training and aircraft leasing. Essentially, they equip military personnel with the skills and experience needed to operate effectively in complex aerial operations.
Electric Air Mobility
Under its 'Jaunt' brand, this segment is pioneering the development of electric vertical takeoff and landing (eVTOL) aircraft, specifically designed for carrying cargo. These are essentially electric helicopters that can take off and land vertically, opening up new possibilities for transporting goods. This area represents AIRO's investment in the future of aviation, focusing on sustainable and efficient modes of transport for the logistics industry.
What management is betting on now
AIRO Group Holdings' management is focused on integrating its diverse capabilities to offer comprehensive solutions in the aerospace and defense market. A key strategic priority is advancing their electric air mobility initiatives, particularly the development of eVTOLs for cargo, signaling a commitment to future aviation technologies. They are also likely emphasizing the synergy between their drone, avionics, and training segments to provide end-to-end services. This integrated approach aims to position AIRO as a leader in both current and emerging aerospace and defense sectors.
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
$5.28M
FY2024 Q4
$23.70M
FY2025 Q1
$-10.10M
FY2025 Q2
$-21.72M
FY2025 Q3
$-6.71M
FY2025 Q4
$3.02M
FY2026 Q1
$-19.48M
FY2026 Q2
$-33.75M
Revenue
$43.18M
Net income
$-1.99M
Diluted EPS
-0.06
Operating cash flow
$-31.32M
Free cash flow
$-33.75M
Fetching…
Sources
Revenue
$8.90M
Net income
$-15.45M
Diluted EPS
-0.49
Operating cash flow
$-17.40M
Free cash flow
$-19.48M
Fetching…
Sources
Revenue
$48.28M
Net income
$-39.41K
Diluted EPS
-0.07
Operating cash flow
$4.09M
Free cash flow
$3.02M
Fetching…
Sources
Revenue
$6.28M
Net income
$-7.96M
Diluted EPS
-0.28
Operating cash flow
$-5.77M
Free cash flow
$-6.71M
Fetching…
Sources
Revenue
$24.55M
Net income
$5.87M
Diluted EPS
0.30
Operating cash flow
$-21.00M
Free cash flow
$-21.72M
Fetching…
Sources
Revenue
$11.79M
Net income
$-1.97M
Diluted EPS
-0.12
Operating cash flow
$-9.75M
Free cash flow
$-10.10M
Fetching…
Sources
Revenue
$86.94M
Net income
$-38.69M
Diluted EPS
-2.36
Operating cash flow
$23.94M
Free cash flow
$23.70M
Fetching…
Sources
Revenue
$23.69M
Net income
$-30.33M
Diluted EPS
-1.85
Operating cash flow
$5.38M
Free cash flow
$5.28M
Fetching…
Sources
Is it cheap or expensive?
Fair value $27.22 vs current price $5.67
Wall Street consensus is the average analyst price target: $15.67 (-42.4% lower than our fair-value estimate).
Our most-likely fair value is $27.22 a share — about 380.0% above today's price of $5.67, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $16.0M - more cash than debt. Interest coverage -2.9x.
Net debt
$-16.01M
Interest coverage
-2.94x
AIRO Group Holdings, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
AIRO
BASELINE
AIRO Group Holdings, Inc.
Total debt $9.84M Interest coverage -2.94x This is the baseline the peer rows are being compared against.
Total debt $3.98M Interest coverage -663.77x Neither company has much profit cushion over interest right now.
Total debt $160.04K Interest coverage -19.09x Neither company has much profit cushion over interest right now.
Total debt $14.87M Interest coverage -970.67x Neither company has much profit cushion over interest right now.
Total debt $1.15M Interest coverage -310.70x Neither company has much profit cushion over interest right now.
Total debt $322.14M Interest coverage -22.23x Neither company has much profit cushion over interest right now.
What you should know
The case for and against AIRO
2 Rewards
1 Risk
Rewards
-
Revenue grew 17.3% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -3.6% last year — the company lost money on shareholders' equity.
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)
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Forward P/E
-4.63x
P/B
0.25x
P/S
1.68x
EV/EBITDA
-17.55x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
58.6%
Operating margin
3.8%
Net margin
-23.9%
ROE
-3.6%
ROA
-1.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
2.87x
Quick ratio
2.19x
Total debt
$9.84M
Total cash
$25.85M
Growth
How the business has been compounding
Revenue TTM
$106.64M
Revenue 5Y CAGR
—
EPS TTM
-0.82
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-50.40M
Free CF TTM
$-35.51M
FCF margin
-33.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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