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Anterix Inc. (ATEX)
:ATEX
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Anterix
(NASDAQ:ATEX)
58Neutral
Anterix (ATEX) vs. S&P 500 (SPY)
Market Cap
$613.18M
Dividend YieldN/A
Average Volume (3M)169.84K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth66.77%
EPS Growth-293.79%
CountryUS
Employees86
SectorCommunication Services
Sector Strength98
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-1.63
Shares Outstanding18,586,786
10 Day Avg. Volume191,520
30 Day Avg. Volume169,844
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)119.04
Price to Cash Flow (P/CF)-22.80
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 Target
$67.00Price Target Upside104.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Anterix Business Overview & Revenue Model
Company DescriptionAnterix (ATEX) is a telecommunications company that specializes in providing wireless broadband solutions specifically designed for critical infrastructure industries such as utilities, energy, and transportation. The company focuses on enabling private LTE (Long-Term Evolution) networks, which offer enhanced connectivity, reliability, and security for mission-critical operations. Anterix's core services include spectrum leasing, network design, and deployment support, tailored to meet the demands of large-scale industrial communication needs.
How the Company Makes MoneyAnterix makes money primarily through the leasing of its licensed 900 MHz spectrum to utilities and other critical infrastructure operators, enabling them to deploy private LTE networks. These leases are structured as long-term agreements, providing Anterix with recurring revenue streams. Additionally, the company may generate revenue from consulting services related to network design, deployment, and ongoing support, although spectrum leasing remains its primary source of income. Strategic partnerships with technology providers and infrastructure companies further enhance its offerings and contribute to its revenue potential.
Anterix Financial Statement Overview
Summary
Anterix shows promising revenue growth but faces significant challenges in achieving profitability. The balance sheet is relatively stable with low leverage, but declining equity raises concerns. Cash flow issues are prominent, necessitating improved cash management to support ongoing operations and growth. Overall, the company needs to address profitability and cash flow to enhance its financial health.Income Statement
Anterix's revenue has shown growth, with a significant increase from $1.92M in 2023 to $5.90M in TTM 2024, representing a strong upward trend. However, the company is struggling with profitability as evidenced by negative EBIT and net profit margins. Despite a high gross profit margin of 93.64% in TTM 2024, persistent losses indicate challenges in cost management and operational efficiency.45
Neutral
Balance Sheet
The balance sheet reflects a relatively stable position with a low debt-to-equity ratio of 0.04, indicating low leverage. However, the decline in stockholders' equity from $161.03M in 2023 to $144.75M in TTM 2024 suggests potential concerns about shareholder value. The equity ratio remains healthy at 44.30%, providing a cushion against financial instability.55
Neutral
Cash Flow
Cash flow challenges are evident as the company generated negative operating cash flows in TTM 2024 of $-6.57M and a significant decline in free cash flow. The free cash flow to net income ratio is negative, highlighting cash flow management issues. Despite past positive cash flow in 2023, the recent downturn raises concerns about liquidity.40
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.90M | 4.19M | 1.92M | 1.08M | 921.00K | 1.56M | Gross Profit |
| 5.53M | 4.19M | 1.91M | 1.08M | -685.00K | -1.27M | EBIT |
| -33.60M | -10.12M | -54.85M | -47.95M | -54.81M | -37.38M | EBITDA |
| -50.27M | -51.62M | -53.43M | -46.50M | -47.27M | -33.74M | Net Income Common Stockholders |
| -29.99M | -9.13M | -16.32M | -37.52M | -54.43M | -37.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 98.32M | 60.58M | 43.18M | 105.62M | 117.54M | 137.45M | Total Assets |
| 220.34M | 324.89M | 278.56M | 278.04M | 253.06M | 267.40M | Total Debt |
| 0.00 | 5.30M | 4.65M | 5.69M | 7.07M | 8.75M | Net Debt |
| -98.32M | -55.28M | -38.53M | -99.94M | -110.47M | -128.71M | Total Liabilities |
| 17.87M | 163.86M | 98.77M | 91.75M | 40.55M | 22.33M | Stockholders Equity |
| 202.47M | 161.03M | 179.79M | 186.30M | 212.51M | 245.07M |
| Cash Flow | Free Cash Flow | ||||
| -14.33M | 24.66M | -54.38M | -9.50M | -24.13M | -35.38M | Operating Cash Flow |
| -6.57M | 41.99M | -27.25M | 17.91M | -9.96M | -30.96M | Investing Cash Flow |
| -14.92M | 8.09M | -27.13M | -27.41M | -14.17M | -4.43M | Financing Cash Flow |
| -11.63M | -25.14M | -8.06M | -2.42M | 4.22M | 96.11M |
Anterix Technical Analysis
Negative
32.76
Price Trends
36.10
Negative
33.87
Negative
35.33
Negative
Market Momentum
0.07
Positive
46.70
Neutral
18.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEX, the sentiment is Negative. The current price of 32.76 is below the 20-day moving average (MA) of 36.57, below the 50-day MA of 36.10, and below the 200-day MA of 35.33, indicating a bearish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 18.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATEX.
Anterix Risk Analysis
Anterix disclosed 32 risk factors in its most recent earnings report. Anterix 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
Anterix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $5.60B | ― | -0.85% | ― | -3.48% | -169.60% | |
64 Neutral | $3.90B | ― | -0.54% | 0.44% | -3.80% | 83.27% | |
58 Neutral | $613.18M | ― | -18.92% | ― | 66.77% | -293.79% | |
58 Neutral | $26.94B | 3.15 | -10.67% | 4.32% | 2.14% | -43.11% | |
56 Neutral | $1.01B | 77.53 | 24.98% | ― | 11.85% | -90.54% | |
43 Neutral | $6.72B | ― | -0.60% | ― | -6.99% | 91.98% | |
41 Neutral | $8.19M | ― | -112.88% | ― | -34.89% | -579.83% |
* Communication Services Sector Average
Performance Comparison
ATEX
Anterix
32.76
0.63
1.96%
SATS
Echostar
22.10
7.90
55.63%
USM
United States Cellular
64.60
29.34
83.21%
GOGO
Gogo
7.11
-1.20
-14.44%
TDS
Telephone & Data Systems
35.43
19.87
127.70%
CMBM
Cambium Networks
0.32
-3.79
-92.21%
Anterix Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -9.40% | Next Earnings Date: Jun 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including significant expansion agreements, regulatory progress, cost reductions, and financial strength. While the slow pace of the utility market poses challenges, the overall outlook is optimistic with strategic initiatives in place to accelerate adoption.Highlights
Expansion Agreement with Lower Colorado River Authority
Announced a $13.5 million expansion agreement with the Lower Colorado River Authority, extending broadband coverage to 102 counties in Texas.
FCC Progress on 900 MHz Band Expansion
The FCC issued a notice of proposed rulemaking for expanding the 900 MHz broadband segment from a three by three to a five by five configuration.
Significant Cost Reductions
Identified operational cost reductions of approximately 20% annually without compromising efficiency.
Share Repurchase Program
Returned roughly $4 million to shareholders through the share repurchase program, reflecting confidence in the company's undervalued stock.
Strong Financial Position
Achieved an incremental cash increase of $34 million, with a total of approximately $150 million in uncollected contract proceeds.
Lowlights
Slow Utility Market
Utilities have been slow to adopt new initiatives, although there is a push to accelerate this process.
Company Guidance
During the Anterix Fiscal Third Quarter 2025 Investor Update Call, CEO Scott Lang outlined several key metrics and strategic initiatives. Anterix announced a $13.5 million expansion agreement with the Lower Colorado River Authority, which extends their broadband coverage to 102 counties in Texas, contributing to 93% coverage of the state via the 900 megahertz broadband spectrum. The company has also identified cost reduction opportunities of approximately 20% annually, which will enhance financial efficiency. Anterix returned roughly $4 million to shareholders through a share repurchase program, reflecting confidence in its undervalued stock and business strategy. The company has approximately $150 million in proceeds still to collect from nearly $400 million in signed contracts, maintaining a strong pipeline of opportunities with zero debt. Anterix continues to explore a strategic review process with Morgan Stanley to accelerate growth, engaging with a vast ecosystem of partners and utilities to drive further innovation in private wireless networks.Anterix Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Anterix Unveils Q3 Results and Strategic Review
Positive
Feb 11, 2025
On February 11, 2025, Anterix announced its third quarter fiscal 2025 results, revealing a strategic review process and new initiatives to boost private wireless broadband opportunities. Financial highlights included cash reserves of $28.8 million and a $3 billion pipeline of prospective contracts with over 60 potential customers. The company also completed $4.4 million in share repurchases, leaving $229.6 million available under its repurchase program.
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.