American Aires, Inc. (WIFI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

BQE Water, Inc.

Redishred Capital Corp.

Neptune Digital Assets Corp.

SSC Security Services Corp.

Quarterhill, Inc.

American Aires, Inc.

EverGen Infrastructure Corp.

Vertex Resource Group Ltd.

Eupraxia Pharmaceuticals, Inc.

Nova Royalty Corp.

Base Carbon, Inc.

Why is American Aires, Inc. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -39.98% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -4.95

Flat results in Dec 24

OPERATING CASH FLOW(Y) Lowest at CAD -8.16 MM
OPERATING PROFIT(Q) Lowest at CAD -3.72
PRE-TAX PROFIT(Q) Lowest at CAD -3.78

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -52.00%, its profits have fallen by -65%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -52.00% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is American Aires, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

American Aires, Inc.

-75.61%

-0.59

118.45%

S&P/TSX 60

19.1%

1.43

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

81.73%

EBIT Growth (5y)

-11.31%

EBIT to Interest (avg)

-5.15

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.71

Sales to Capital Employed (avg)

1.91

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-2.44

EV to EBIT

-1.28

EV to EBITDA

-1.30

EV to Capital Employed

-8.08

EV to Sales

0.49

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

NET SALES(Q)

At CAD 5.38 MM has Grown at 163.87%

NET PROFIT(HY)

Higher at CAD -5.8 MM

RAW MATERIAL COST(Y)

Fallen by -12% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.85%

DEBTORS TURNOVER RATIO(HY)

Highest at 125.51%

OPERATING PROFIT MARGIN(Q)

Highest at -34.66 %

-23What is not working for the Company

INTEREST(HY)

At CAD 0.14 MM has Grown at 218.85%

OPERATING CASH FLOW(Y)

Lowest at CAD -8.57 MM

PRE-TAX PROFIT(Q)

At CAD -2.01 MM has Fallen at -85.87%

NET PROFIT(Q)

At CAD -2.01 MM has Fallen at -85.87%

Here's what is working for American Aires, Inc.

Net Sales

At CAD 5.38 MM has Grown at 163.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CAD MM)

Operating Profit Margin

Highest at -34.66 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 5.85%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 125.51%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -12% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for American Aires, Inc.

Interest

At CAD 0.14 MM has Grown at 218.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

At CAD -2.01 MM has Fallen at -85.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -2.01 MM has Fallen at -85.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD -8.57 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)