One-glance verdict
Undervalued
$107.50 our estimate vs market $29.03
73% below our estimate, below the bear case
Fundamentals snapshot
Air T, Inc.
AIRT · NCM · Industrials · Conglomerates
Current price
$29.03
52-week range
$18.35 - $35.00
Market cap
$78.28M
Balance sheet
Distressed
-1.54x Concerning
Net debt $246.86M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 13.6% last year.
- Reward Returns 157.4% on equity, ahead of 80% of its peers.
- Risk Stock trades 62.8% above its 5-year average P/E.
- Risk Net debt grew 54.4% over 3 years.
What this company does
Air T, Inc.
Air T is a collection of different businesses that all serve the airline industry, from leasing cargo planes to FedEx to manufacturing ground equipment like aircraft deicers. The company also sells aircraft parts and operates its own small regional airline for passengers. Because it has multiple sources of revenue (the different ways a company makes money), its financial health doesn't depend solely on one part of the aviation market, like passenger travel.
How the company got here
Air T, Inc. started in 1980 with an investment in an air cargo company that had a long-standing relationship with FedEx. Over the years, it grew by acquiring other businesses related to aviation. Key moves included buying companies that provide ground support equipment like deicers, and others that trade in commercial aircraft and engine parts. This series of acquisitions has shaped the company into a holding company, which is a parent company that owns a controlling interest in a group of other companies, each operating in a different part of the aviation industry.
What it actually does
Air T, Inc. doesn't make one single product but is a collection of different businesses that serve the aviation industry. Think of it less as a single company and more as a portfolio of companies that do everything from flying cargo overnight for FedEx to manufacturing the trucks that de-ice planes in the winter. They also sell and lease used commercial aircraft and their parts, operate a regional airline in Australia, and provide specialized software for aviation businesses.
Overnight Air Cargo
This is the company's original business and a very steady part of its operations. Two of its subsidiary companies fly cargo planes as part of the FedEx feeder system, which is a network of smaller aircraft that bring packages from smaller cities to the main FedEx hubs. FedEx is the primary customer for this segment, and the relationship provides a consistent stream of revenue (money earned from sales). This segment also includes companies that provide aircraft maintenance and repair services.
Commercial Aircraft, Engines & Parts
This part of the company acts like a marketplace for used commercial airplanes and their components. They buy, sell, and lease entire aircraft and also take them apart to sell the valuable engine parts, airframes, and electronics to airlines and leasing companies. This is a significant business for Air T, helping airlines and repair shops find the specific parts they need to keep their fleets flying.
Aviation Ground Support Equipment
This segment builds and sells the specialized vehicles you see on the tarmac at an airport. Its main company, Global Ground Support, is a major manufacturer of aircraft deicers, the trucks that spray planes with fluid to remove ice and snow before takeoff. Their customers include airlines, airports, and even the U.S. Air Force, for whom they have been the sole supplier of deicing equipment for many years.
Regional Airline
Through its ownership of Regional Express Airlines (Rex), this segment operates scheduled passenger and cargo flights in Australia. It connects smaller towns and regional centers, providing an essential service for travel and commerce. This part of the business also includes a pilot training academy in Australia.
Digital Solutions
This is a smaller but growing part of Air T that provides technology services to the aviation industry. It develops and sells cloud-based software that helps aviation aftermarket businesses (companies that sell parts and services for aircraft after the original sale) manage their operations. The goal of this segment is to build a base of customers paying for recurring software subscriptions.
What management is betting on now
Management's strategy is centered on what they call an "Investor-Operator Partnership." This means they focus on acquiring cash-flow generating businesses (companies that consistently bring in more cash than they spend) and then support the leadership of those companies to grow. They are not just focused on aviation but will look at other industries for good investment opportunities. The main goal is to diligently allocate shareholder capital (the money invested by the company's owners) to strengthen the company's overall financial health and create long-term value.
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.
FY2025 Q2
$2.69M
FY2025 Q3
$15.98M
FY2025 Q4
$3.97M
FY2026 Q1
$-1.33M
FY2026 Q2
$-5.62M
FY2026 Q3
$-19.28M
FY2026 Q4
$-15.30M
FY2027 Q1
$-24.15M
Revenue
$115.46M
Net income
$-15.81M
Diluted EPS
-5.86
Operating cash flow
$-2.83M
Free cash flow
$-24.15M
Fetching…
Sources
Revenue
$120.94M
Net income
$77.72M
Diluted EPS
28.76
Operating cash flow
$-44.00K
Free cash flow
$-15.30M
Fetching…
Sources
Revenue
$71.13M
Net income
$-2.45M
Diluted EPS
-0.91
Operating cash flow
$-18.50M
Free cash flow
$-19.28M
Fetching…
Sources
Revenue
$64.15M
Net income
$4.36M
Diluted EPS
1.61
Operating cash flow
$-5.41M
Free cash flow
$-5.62M
Fetching…
Sources
Revenue
$70.87M
Net income
$-1.64M
Diluted EPS
-0.61
Operating cash flow
$-1.09M
Free cash flow
$-1.33M
Fetching…
Sources
Revenue
$66.32M
Net income
$-7.03M
Diluted EPS
-2.55
Operating cash flow
$4.12M
Free cash flow
$3.97M
Fetching…
Sources
Revenue
$77.88M
Net income
$-1.30M
Diluted EPS
-0.47
Operating cash flow
$16.33M
Free cash flow
$15.98M
Fetching…
Sources
Revenue
$81.24M
Net income
$2.52M
Diluted EPS
0.91
Operating cash flow
$2.93M
Free cash flow
$2.69M
Fetching…
Sources
Is it cheap or expensive?
Fair value $107.50 vs current price $29.03
Our most-likely fair value is $107.50 a share — about 270.3% above today's price of $29.03, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $246.9M. Interest coverage -1.5x.
Net debt
$246.86M
Interest coverage
-1.54x
Air T, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
AIRT
BASELINE
Air T, Inc.
Total debt $264.78M Interest coverage -1.54x This is the baseline the peer rows are being compared against.
Total debt $1.41M Interest coverage 12.43x This peer still has a real interest-payment cushion, while AIRT does not.
Total debt $29.22M Interest coverage 9.40x This peer still has a real interest-payment cushion, while AIRT does not.
Total debt $19.46M Interest coverage 0.79x This peer still has a real interest-payment cushion, while AIRT does not.
Total debt $141.14M Interest coverage 1.26x This peer still has a real interest-payment cushion, while AIRT does not.
What you should know
The case for and against AIRT
3 Rewards
3 Risks
Rewards
-
Revenue grew 13.6% last year.
-
Returns 157.4% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 62.8% above its 5-year average P/E.
-
Net debt grew 54.4% over 3 years.
-
Operating margin compressed from 1.4% to -8.5% 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)
1.23x
Forward P/E
—
P/B
1.20x
P/S
0.21x
EV/EBITDA
-41.42x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
22.7%
Operating margin
-8.5%
Net margin
17.2%
ROE
157.4%
ROA
-5.5%
Health
Liquidity and balance-sheet strength
Debt / equity
3.18x
Current ratio
1.43x
Quick ratio
0.47x
Total debt
$264.78M
Total cash
$17.91M
Growth
How the business has been compounding
Revenue TTM
$371.68M
Revenue 5Y CAGR
16.6%
EPS TTM
23.60
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-26.78M
Free CF TTM
$-41.53M
FCF margin
-11.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2013-06-05