One-glance verdict
Overvalued
$16.31 our estimate vs market $58.99
Wall Street consensus: $98.00 (500.8% higher than our fair-value estimate)
262% above our estimate, beyond the bull case
Fundamentals snapshot
Astronics Corporation
ATRO · NMS · Industrials · Aerospace & Defense
Current price
$58.99
52-week range
$36.51 - $94.46
Market cap
$2.54B
Balance sheet
Distressed
6.08x Adequate
Net debt $343.95M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 9.3% last year.
- Reward Returns 33.7% on equity, ahead of 75% of its peers.
- Risk Net debt grew 118.8% over 3 years.
- Risk Insider ownership is only 1.9% (peer median: 2.4%).
What this company does
Astronics Corporation
Astronics Corporation makes special parts and systems for airplanes and defense equipment, like lighting, power, and testing systems. Most of their money comes from selling these parts to airplane makers and the military. This is important because it means their business is closely tied to how much airlines are flying and how much governments are spending on defense.
How the company got here
Astronics Corporation was founded in 1968 and has grown by developing specialized products for the aerospace and defense industries. Over the decades, it has expanded its offerings through innovation and strategic acquisitions, becoming a key supplier to major aircraft manufacturers and defense contractors. The company's history is marked by a consistent focus on providing critical systems that enhance aircraft safety, efficiency, and performance. This long-standing presence has allowed Astronics to build deep relationships within its core markets.
What it actually does
Astronics designs and manufactures a variety of complex electronic and mechanical systems. Think of them as the specialized internal components that make airplanes and defense equipment work reliably and safely. Their products range from the lights and power systems inside a plane's cabin to sophisticated testing equipment used to ensure military electronics function correctly. They essentially provide the high-tech building blocks that other companies use to assemble aircraft and defense systems.
Aerospace
This is Astronics' largest business, focusing on products for aircraft. They provide everything from the electrical power systems and cabin lighting that passengers see and use, to crucial structural components and avionics (the electronic systems used for navigation and communication). Customers include the companies that build new planes (OEMs), their suppliers, and the operators of aircraft, like airlines and military branches. This segment is the primary engine of Astronics' revenue, making up a significant portion of its overall sales.
Test Systems
The Test Systems segment develops and manufactures specialized equipment used to test other complex electronics, particularly for the aerospace and defense sectors. Imagine a highly sophisticated diagnostic machine that checks if a fighter jet's radar system or a commercial airliner's communication equipment is working perfectly before it's installed or deployed. They also create training and simulation devices. This segment serves the same types of customers as the Aerospace division, ensuring the reliability and functionality of critical defense and aviation technology.
What management is betting on now
Astronics' management is focused on leveraging its expertise in aerospace and defense to capture growth opportunities. A key priority is to capitalize on the expected recovery and expansion in commercial air travel, which drives demand for their aircraft components. They are also investing in new technologies and product development to stay ahead in the rapidly evolving defense sector. The company aims to improve operational efficiency across its segments to enhance profitability and deliver greater value to shareholders.
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 Q4
$23.23M
FY2025 Q1
$18.54M
FY2025 Q2
$-12.24M
FY2025 Q3
$21.01M
FY2025 Q4
$15.81M
FY2026 Q2
$-554.00K
FY2026 Q3
$24.41M
Revenue
$259.96M
Net income
$35.06M
Diluted EPS
0.75
Operating cash flow
$30.12M
Free cash flow
$24.41M
Fetching…
Sources
Revenue
$230.62M
Net income
$25.54M
Diluted EPS
0.67
Operating cash flow
$10.61M
Free cash flow
$-554.00K
Fetching…
Sources
Revenue
$240.07M
Net income
$29.61M
Diluted EPS
0.78
Operating cash flow
$27.62M
Free cash flow
$15.81M
Fetching…
Sources
Revenue
$211.45M
Net income
$-11.10M
Diluted EPS
-0.31
Operating cash flow
$34.16M
Free cash flow
$21.01M
Fetching…
Sources
Revenue
$204.68M
Net income
$1.31M
Diluted EPS
0.04
Operating cash flow
$-7.63M
Free cash flow
$-12.24M
Fetching…
Sources
Revenue
$205.94M
Net income
$9.53M
Diluted EPS
0.26
Operating cash flow
$20.64M
Free cash flow
$18.54M
Fetching…
Sources
Revenue
$208.54M
Net income
$-2.83M
Diluted EPS
-0.08
Operating cash flow
$26.42M
Free cash flow
$23.23M
Fetching…
Sources
Is it cheap or expensive?
Fair value $16.31 vs current price $58.99
Wall Street consensus is the average analyst price target: $98.00 (500.8% higher than our fair-value estimate).
Our most-likely fair value is $16.31 a share — about 72.3% below today's price of $58.99, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $344.0M. Interest coverage 6.1x.
Net debt
$343.95M
Interest coverage
6.08x
Astronics Corporation's profit covers its interest bill about 6.1 times over. which is stronger than every peer shown here.
Distressed
Worse cushion
Baseline
Better cushion
ATRO
BASELINE
Astronics Corporation
Total debt $352.97M Interest coverage 6.08x This is the baseline the peer rows are being compared against.
Total debt $306.86M Interest coverage 5.82x -4% vs ATRO Has roughly the same debt cushion as ATRO.
Total debt $978.40M Interest coverage 3.75x -38% vs ATRO Carries about 1.6x less debt cushion than ATRO.
Total debt $246.00M Interest coverage 2.89x -53% vs ATRO Carries about 2.1x less debt cushion than ATRO.
What you should know
The case for and against ATRO
3 Rewards
2 Risks
Rewards
-
Revenue grew 9.3% last year.
-
Returns 33.7% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Net debt grew 118.8% over 3 years.
-
Insider ownership is only 1.9% (peer median: 2.4%).
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)
32.06x
Forward P/E
19.25x
P/B
12.80x
P/S
2.69x
EV/EBITDA
19.37x
PEG ratio
1.45x
Profitability
How much profit each dollar creates
Gross margin
32.3%
Operating margin
14.8%
Net margin
8.4%
ROE
33.7%
ROA
11.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.78x
Current ratio
2.97x
Quick ratio
1.46x
Total debt
$352.97M
Total cash
$9.02M
Growth
How the business has been compounding
Revenue TTM
$942.09M
Revenue 5Y CAGR
18.0%
EPS TTM
1.84
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$102.51M
Free CF TTM
$43.12M
FCF margin
4.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
1994-01-25