AstroNova (ALOT) AI Stock Analysis

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AstroNova

(NASDAQ:ALOT)

58Neutral

AstroNova exhibits solid financial fundamentals, particularly with its debt management and revenue growth in key segments. However, technical indicators and earnings call outcomes highlight challenges including integration issues and declining profitability margins. The valuation appears moderate, though lack of dividend yield may deter certain investors.

AstroNova (ALOT) vs. S&P 500 (SPY)

Market Cap

$64.90M

Dividend YieldN/A

Average Volume (3M)12.39K

Price to Earnings (P/E)17.8

Beta (1Y)0.73

Revenue Growth3.49%

EPS Growth13.16%

CountryUS

Employees365

SectorTechnology

Sector Strength40

IndustryComputer Hardware

Share Statistics

EPS (TTM)0.50

Shares Outstanding7,528,838

10 Day Avg. Volume11,302

30 Day Avg. Volume12,395

Financial Highlights & Ratios

PEG Ratio1.35

Price to Book (P/B)N/A

Price to Sales (P/S)0.48

Price to Cash Flow (P/CF)-3.90

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

AstroNova Business Overview & Revenue Model

Company DescriptionAstroNova, Inc. (ALOT) is a diversified manufacturer specializing in the design, development, and production of a wide range of products within the aerospace, defense, and commercial sectors. The company operates through two primary segments: Product Identification and Test & Measurement. AstroNova's Product Identification segment focuses on providing digital color label printers and consumables, while the Test & Measurement segment offers data acquisition systems and airborne printers used in flight deck and cabin environments.

How the Company Makes MoneyAstroNova generates revenue through the sale of its hardware products and the recurring sales of consumables like labels and inks. In the Product Identification segment, the company sells digital color label printers and related supplies, which provide a steady stream of recurring revenue from consumables. In the Test & Measurement segment, revenue is primarily derived from the sale of data acquisition systems and airborne printers, which are used extensively in aerospace applications. Additionally, AstroNova may engage in service contracts and support agreements that provide an additional revenue stream. Key partnerships with aerospace manufacturers and commercial enterprises further bolster the company's income through collaborative projects and long-term contracts.

AstroNova Financial Statement Overview

Summary

AstroNova's financial health is underpinned by stable revenue growth and effective cost management. The balance sheet is solid with a strong equity base and prudent leverage, although return on equity and free cash flow generation indicate areas for improvement.

Income Statement

Positive

AstroNova shows a healthy gross profit margin of 35.65% and a modest net profit margin of 2.49% for the TTM. The revenue growth rate from 2023 to 2024 was strong at 3.66%. However, the EBIT and EBITDA margins indicate room for improvement in operational efficiency.

Balance Sheet

Positive

The company has a manageable debt-to-equity ratio of 0.31, indicating a conservative leverage approach. The equity ratio stands strong at 55.37%, showcasing financial stability. However, the return on equity of 4.15% suggests opportunities to enhance shareholder returns.

Cash Flow

Positive

Operating cash flow to net income ratio is favorable at 2.30, indicating sound cash generation relative to net earnings. Free cash flow growth is negative, highlighting potential challenges in cash flow management. The free cash flow to net income ratio is robust at 2.12.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
153.52M	148.09M	142.53M	117.48M	116.03M	133.45M
	Gross Profit
54.73M	53.69M	48.16M	43.74M	41.36M	48.76M
	EBIT
7.55M	8.80M	1.65M	235.00K	-3.55M	-3.85M
	EBITDA
11.96M	13.04M	10.06M	8.25M	8.42M	8.72M
	Net Income Common Stockholders
3.82M	4.69M	2.66M	6.43M	1.28M	1.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.28M	4.53M	3.95M	5.28M	11.44M	4.25M
	Total Assets
64.97M	133.25M	138.51M	114.95M	115.47M	116.66M
	Total Debt
0.00	22.44M	30.12M	9.96M	17.92M	20.70M
	Net Debt
-10.87M	17.91M	26.17M	4.69M	6.48M	16.45M
	Total Liabilities
10.98M	42.97M	54.14M	33.94M	40.79M	45.29M
	Stockholders Equity
54.00M	90.28M	84.37M	81.01M	74.68M	71.38M
Cash Flow		Free Cash Flow
8.09M	11.48M	-3.17M	-402.00K	12.96M	318.00K
	Operating Cash Flow
8.78M	12.35M	-2.94M	1.39M	15.54M	3.22M
	Investing Cash Flow
-19.79M	-875.00K	-17.26M	-1.80M	-2.59M	-2.91M
	Financing Cash Flow
10.55M	-10.97M	18.75M	-5.56M	-5.14M	-3.74M

AstroNova Technical Analysis

Technical Analysis Sentiment

Negative

Last Price8.98

Price Trends

50DMA

10.62

Negative

100DMA

12.14

Negative

200DMA

13.20

Negative

Market Momentum

MACD

-0.58

Positive

RSI

35.08

Neutral

STOCH

27.77

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALOT, the sentiment is Negative. The current price of 8.98 is below the 20-day moving average (MA) of 9.69, below the 50-day MA of 10.62, and below the 200-day MA of 13.20, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 35.08 is Neutral, neither overbought nor oversold. The STOCH value of 27.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALOT.

AstroNova Risk Analysis

AstroNova disclosed 29 risk factors in its most recent earnings report. AstroNova 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

AstroNova Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLXS	73 Outperform	$3.05B	25.73	9.27%	―	-3.53%	-3.90%
TTMI	61 Neutral	$1.81B	33.19	3.66%	―	9.41%	―
ALOT	58 Neutral	$64.90M	17.81	4.27%	―	3.49%	13.16%
NPO	58 Neutral	$3.00B	41.33	5.14%	0.85%	-1.00%	174.41%
Sector *	57 Neutral	$18.45B	9.41	-13.97%	2.74%	5.04%	-23.56%
KE	51 Neutral	$326.09M	41.73	1.48%	―	-13.77%	-85.22%
MEI	43 Neutral	$206.29M	―	-11.90%	9.69%	-6.16%	-59.41%

* Technology Sector Average

Performance Comparison

ALOT

AstroNova

8.90

-8.85

-49.86%

NPO

Enpro

137.27

-27.04

-16.46%

MEI

Methode Electronics

5.35

-6.69

-55.56%

PLXS

Plexus

110.95

12.82

13.06%

TTMI

TTM Technologies

17.57

2.88

19.61%

Kimball Electronics

12.91

-8.56

-39.87%

AstroNova Earnings Call Summary

Earnings Call Date: Dec 12, 2024 | % Change Since: -42.98% | Next Earnings Date: Apr 14, 2025

Earnings Call Sentiment Negative

The earnings call highlighted revenue growth and potential from new orders and initiatives. However, significant challenges with MTEX integration, increased expenses, and cash flow issues overshadow these positives.

Highlights

Revenue Growth

Total revenue increased nearly 8% in the third quarter, driven largely by the aerospace product line within the Test & Measurement segment.

Aerospace Product Line Performance

Test & Measurement segment revenue increased 28.2% from the prior year period to $14.1 million, primarily due to the aerospace product line.

Inkjet Printer Order

In fiscal Q4, a large inkjet printer order began shipping, expected to contribute several million dollars to the PI segment's top line over the next several quarters.

Cost Reduction and Product Rationalization Initiative

A company-wide initiative is underway to reduce expenses and refine the product portfolio, with early progress indicated by significant new orders.

Lowlights

MTEX Integration Challenges

MTEX had an operating loss of $1.1 million on revenue of $1.7 million, with integration being more time-consuming and resource-intensive than anticipated.

Decline in Gross Profit Margin

Gross profit margin for the third quarter was 33.9% compared with 39.4% in the prior year period, affected by lower margins at MTEX and lower European hardware sales.

Increased Operating Expenses

Non-GAAP operating expenses for the third quarter were $12.1 million, up 19.3% from the prior year period, with MTEX accounting for $1.3 million of the increase.

Liquidity and Cash Flow Challenges

Liquidity was $14.7 million at the end of the quarter, down by $7.2 million from Q2, reflecting higher accounts receivable and support for MTEX with a $2.7 million working capital loan.

Company Guidance

During the AstroNova Q3 2025 earnings call, the company provided guidance on various performance metrics and strategic initiatives. The total revenue for the third quarter increased nearly 8%, driven by growth in the Test and Measurement (T&M) segment, specifically the aerospace product line, despite a delay caused by a two-month strike impacting shipments. The Product Identification (PI) segment experienced a 1% revenue decline, largely due to the ongoing integration challenges with the MTEX NS acquisition, which resulted in an operating loss of $1.1 million on $1.7 million in revenue. Gross profit margin fell to 33.9% from 39.4% in the previous year, attributed to lower margins at MTEX and a less favorable sales mix. The company has undertaken a cost reduction and product line rationalization initiative to improve margins and enhance competitive positioning. AstroNova suspended fiscal '25 and '26 guidance due to the extended MTEX integration timeline and plans to provide longer-term targets in March. Adjusted EBITDA for the quarter was $3.2 million, and non-GAAP diluted earnings per share was $0.06, compared to $0.37 in the prior year.

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.