Education
About Us
Working with TipRanks
Follow Us
Aeries Technology (AERT)
NASDAQ:AERT
RESEARCH TOOLSreports
Top Page
Aeries Technology
(NASDAQ:AERT)
50Neutral
Aeries Technology (AERT) vs. S&P 500 (SPY)
Market Cap
$26.15M
Dividend YieldN/A
Average Volume (3M)64.99K
Price to Earnings (P/E)0.4
Beta (1Y)0.07
Revenue Growth34.17%
EPS GrowthN/A
CountryUS
Employees1,700
SectorFinancial
Sector Strength80
IndustryConsulting Services
Share Statistics
EPS (TTM)1.60
Shares Outstanding44,557,995
10 Day Avg. Volume70,852
30 Day Avg. Volume64,986
Financial Highlights & Ratios
PEG Ratio0.00217
Price to Book (P/B)N/A
Price to Sales (P/S)0.61
Price to Cash Flow (P/CF)-3.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Aeries Technology Business Overview & Revenue Model
Company DescriptionAeries Technology (AERT) is a global provider of technology and business services solutions. The company specializes in offering digital transformation, business process management, and IT services across various sectors, including manufacturing, healthcare, and finance. Aeries Technology focuses on harnessing advanced technologies to optimize business operations and enhance customer experiences, delivering tailored solutions that drive efficiency and innovation for its clients.
How the Company Makes MoneyAeries Technology makes money primarily through service-based contracts with businesses across multiple industries. The company's revenue model is driven by offering comprehensive IT and business services such as digital transformation consulting, automation solutions, and managed services. It generates revenue by charging fees for these services, which can be structured as fixed-price contracts, time-and-materials contracts, or subscription-based models. Additionally, Aeries Technology may form strategic partnerships with technology providers and other firms to expand its service offerings, contributing to its revenue streams. The company's focus on delivering high-value, customized solutions aids in client retention and long-term engagements, further solidifying its financial performance.
Aeries Technology Financial Statement Overview
Summary
Aeries Technology shows mixed financial performance with notable revenue growth and positive net income. However, operational inefficiencies, high leverage, and negative cash flow trends pose risks to financial stability.Income Statement
Aeries Technology's income statement reveals a mixed performance. While there's a notable increase in revenue from 2023 to TTM 2024, the company has experienced a decrease in revenue in the TTM compared to 2024 annual, indicating potential volatility. The gross profit margin for TTM is 25.32%, but the net profit margin is negative due to significant EBIT and EBITDA losses, pointing to operational inefficiencies. Despite this, the company posted a positive net income, suggesting some financial management strengths.65
Positive
Balance Sheet
The balance sheet for Aeries Technology highlights some concerns. The debt-to-equity ratio is high due to low stockholders' equity, reflecting potential financial risk. Stockholders' equity has significantly decreased from a positive 2023 to a negative figure in 2024, indicating financial instability. However, the company maintains a reasonable level of total assets, showcasing some asset management capabilities.45
Neutral
Cash Flow
Cash flow analysis indicates challenges in liquidity and cash management. Operating cash flow is negative in both TTM and 2024, resulting in negative free cash flow, which reflects cash flow strain. The ratio of free cash flow to net income is negative, highlighting inefficiencies in converting income to cash. The persistent cash outflow in operating activities suggests a need for better cash management strategies.40
Negative
| Breakdown | |||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 70.85M | 72.51M | 53.10M | 41.01M | Gross Profit |
| 17.95M | 21.64M | 13.66M | 12.01M | EBIT |
| -25.68M | 2.99M | 2.33M | 6.58M | EBITDA |
| -16.54M | 21.34M | 4.12M | 7.59M | Net Income Common Stockholders |
| 16.87M | 15.66M | 1.45M | 4.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 2.39M | 2.08M | 1.13M | 351.00K | Total Assets |
| 50.68M | 49.41M | 34.40M | 18.86M | Total Debt |
| 16.94M | 16.37M | 8.80M | 1.99M | Net Debt |
| 14.55M | 14.29M | 7.67M | 1.64M | Total Liabilities |
| 50.02M | 50.59M | 20.93M | 10.17M | Stockholders Equity |
| 692.00K | -12.24M | 12.19M | 7.56M |
| Cash Flow | Free Cash Flow | ||
| -7.04M | -5.82M | 511.00K | 1.51M | Operating Cash Flow |
| -6.20M | -4.30M | 2.11M | 3.16M | Investing Cash Flow |
| -2.23M | -1.74M | -1.56M | -437.00K | Financing Cash Flow |
| 3.92M | 7.06M | 252.00K | -3.54M |
Aeries Technology Technical Analysis
Negative
0.59
Price Trends
0.61
Negative
0.76
Negative
1.42
Negative
Market Momentum
<0.01
Positive
44.84
Neutral
20.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AERT, the sentiment is Negative. The current price of 0.59 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.61, and below the 200-day MA of 1.42, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.84 is Neutral, neither overbought nor oversold. The STOCH value of 20.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AERT.
Aeries Technology Risk Analysis
Aeries Technology disclosed 92 risk factors in its most recent earnings report. Aeries Technology reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aeries Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $70.32B | 20.77 | 33.16% | 2.50% | 3.08% | 11.92% | |
72 Outperform | $34.00B | 15.25 | 16.21% | 1.76% | 1.98% | 7.16% | |
69 Neutral | $8.23B | 18.45 | 12.80% | ― | 0.80% | 10.05% | |
68 Neutral | $30.04B | 26.05 | 16.59% | 2.20% | -3.41% | 67.87% | |
63 Neutral | $12.86B | 9.19 | 9.16% | 4.78% | 16.31% | -8.97% | |
50 Neutral | $26.15M | 0.37 | 112.00% | ― | 34.17% | ― | |
47 Neutral | $2.69B | 267.98 | -2.46% | ― | -5.65% | 78.20% |
* Financial Sector Average
Performance Comparison
AERT
Aeries Technology
0.59
-1.62
-73.30%
CTSH
Cognizant
68.74
-1.22
-1.74%
EPAM
Epam Systems
144.67
-125.33
-46.42%
INFY
Infosys
16.58
-0.79
-4.55%
WIT
Wipro
2.79
0.03
1.09%
DXC
DXC Technology
14.85
-6.02
-28.85%
Aeries Technology Earnings Call Summary
Earnings Call Date: Feb 14, 2025 | % Change Since: 9.26% | Next Earnings Date: Oct 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Aeries Technology's strategic shift towards profitable growth and cost optimization, with strong performance in North American revenue and significant reduction in net loss. However, the company faced challenges with an overall revenue decline and negative adjusted EBITDA. The call reflects a cautiously optimistic outlook with expected improvements in the upcoming quarters.Highlights
North American Revenue Growth
North American revenue reached $16.4 million, representing a 13.1% year-over-year growth, now accounting for over 93% of total business.
Significant Reduction in Net Loss
Net income was $2.0 million compared to a net loss of $16.3 million for the third fiscal quarter of 2024.
Cost Optimization Success
Significant SG&A expense reductions are expected to generate meaningful benefits in upcoming quarters.
AI-Driven Transformation
AI projects demonstrated tangible value, such as 90% accuracy in churn prediction for a telecom client and a 40% reduction in human intervention for IT support in healthcare.
Lowlights
Overall Revenue Decline
Total revenues were $17.6 million, down 6.8% year-over-year.
Negative Income from Operations
Income from operations was negative $5.2 million compared to $0.7 million in the third fiscal quarter of 2024.
Negative Adjusted EBITDA
Adjusted EBITDA for the quarter was negative $2 million, though improvements are expected due to cost optimization.
Company Guidance
During Aeries Technology's Third Fiscal Quarter 2025 Business Update Call, the company outlined its strategic focus on profitable growth, cost discipline, and innovation. For the quarter ended December 31, 2024, North American revenue grew 13.1% year-over-year to $16.4 million, making up over 93% of total revenue, which was $17.6 million, a 6.8% year-over-year decline. The gross profit stood at $4.0 million with a margin of 23.0%, while income from operations was negative $5.2 million, a shift from $0.7 million the previous year. Despite headwinds, net income improved to $2.0 million from a negative $16.3 million the prior year, and core adjusted EBITDA increased to $1.5 million from negative $0.02 million. The company holds $2.4 million in cash with $1.5 million in long-term debt. Looking ahead, Aeries reiterated fiscal 2025 guidance with revenue between $71 million and $73 million and core adjusted EBITDA between $6 million and $7 million. For fiscal 2026, they project revenue between $74 million and $80 million and adjusted EBITDA between $6 million and $8 million, focusing on AI-driven transformations and GCC model to drive value.Aeries Technology Corporate Events
Executive/Board ChangesShareholder Meetings
Aeries Technology Updates Executive Employment Agreements
Neutral
Apr 2, 2025
On March 28, 2025, Aeries Technology Solutions, Inc. implemented revised employment agreements for its executive officers, including CEO Bhisham (Ajay) Khare, CFO and CIO Daniel S. Webb, and CTO Unnikrishnan Nambiar, reflecting changes in roles, responsibilities, and compensation. These agreements, effective from February 10, 2025, were approved by the Board of Directors and include provisions for base salary, incentive opportunities, equity awards, and severance payments, along with restrictive covenants. Additionally, at the 2025 Annual Meeting of Shareholders on March 27, 2025, all proposed resolutions were approved, including the appointment of directors and amendments to the 2023 Equity Incentive Plan, which increased the share reserve and adjusted the evergreen provision.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.