One-glance verdict
Undervalued
$160.25 our estimate vs market $28.69
82% below our estimate, below the bear case
Fundamentals snapshot
Air T, Inc.
AIRT · NCM · Industrials · Conglomerates
Current price
$28.69
52-week range
$18.35 - $35.00
Market cap
$77.36M
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 61.0% 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, Inc. is a company that offers a variety of aviation-related services, including overnight air cargo delivery, aircraft parts and maintenance, and regional airline operations. Their biggest money maker comes from leasing aircraft to FedEx for their overnight delivery service, which is important because it provides a steady stream of income. They also make money by selling and servicing specialized ground equipment for airports and airlines.
How the company got here
Air T, Inc. was incorporated in 1980 and has since evolved into a diversified aviation services company. It has grown by strategically acquiring and developing businesses that support the broader aviation ecosystem. The company's journey reflects a focus on building a comprehensive suite of services, from cargo transport to aircraft maintenance and digital solutions, aiming to capture value across different parts of the industry.
What it actually does
Air T, Inc. operates a collection of businesses focused on aviation. Think of it like a company that provides many different services for airplanes and the companies that fly them. This includes flying packages overnight, making equipment that helps planes operate on the ground, and dealing with the buying, selling, and upkeep of aircraft and their parts. They also offer digital tools for the aviation world and even run regional airlines that carry passengers and cargo.
Overnight Air Cargo
This part of Air T, Inc. is all about getting packages from one place to another very quickly, specifically overnight. They operate a fleet of aircraft that are leased out, primarily to a major shipping company like FedEx, to transport goods. This segment is a significant part of the company's operations, as evidenced by the large number of aircraft dedicated to this service, highlighting the importance of reliable and fast delivery in today's economy.
Ground Support Equipment
This segment focuses on the essential machinery and vehicles that help airplanes operate safely and efficiently on the ground. Air T manufactures and sells specialized equipment such as de-icers (to remove ice from wings), tow tractors (to move planes), and glycol recovery vehicles (to manage fluids). Their customers include airlines, ground handling companies, and even the U.S. Air Force, showing the wide applicability of their robust equipment in various aviation settings.
Commercial Aircraft, Engines and Parts
This business line is involved in the lifecycle of commercial aircraft, engines, and their components. Air T trades, leases, and stores aircraft, and also provides services like disassembly for parts. They are a key player in supplying spare parts, managing consignment programs, and offering overhaul and repair services to airlines and leasing companies. This segment also extends to composite structures and aircraft maintenance, making it a comprehensive provider for aircraft upkeep and parts management.
Digital Solutions
In today's increasingly digital world, Air T offers technology services tailored for the aviation industry. This segment develops and provides digital tools and cloud-based software designed to help aviation aftermarket businesses operate more efficiently. By offering these solutions, Air T aims to modernize operations and improve data management for its clients within the complex aviation sector.
Regional Airline
This segment of Air T operates regional airlines, providing scheduled passenger services and air freight. They also engage in charter services and offer ancillary passenger services, which are additional offerings beyond the basic ticket. The company also benefits from government subsidies, which can be common for regional carriers that serve less populated areas. This part of the business connects communities and supports economic activity through air transportation.
What management is betting on now
Air T's management appears to be focused on leveraging its diverse aviation service offerings to create a synergistic ecosystem. They are likely investing in expanding their capabilities across all segments, from cargo and regional airlines to aircraft parts and digital solutions. The strategy seems to be about providing a comprehensive suite of services to the aviation industry, aiming for growth through operational efficiency and by meeting the evolving needs of airlines and related businesses.
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 $160.25 vs current price $28.69
Our most-likely fair value is $160.25 a share — about 458.6% above today's price of $28.69, 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 $1.39M 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 $18.43M 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 61.0% 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)
1.22x
Forward P/E
—
P/B
1.18x
P/S
0.21x
EV/EBITDA
-41.31x
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
23.59
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
0.0%
Payout ratio
0.0%
Last ex-div date
2013-06-05