Aimia Inc. (AIM) AI Stock Analysis

• Market Cap: C$218.42M
• Dividend Yield: N/A
• Average Volume (3M): 38.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 131.52%
• EPS Growth: 46.07%
• Country: CA
• Employees: 18
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): -0.74
• Shares Outstanding: 94,967,220
• 10 Day Avg. Volume: 55,141
• 30 Day Avg. Volume: 38,051
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.55
• Price to Cash Flow (P/CF): 44.10
• P/FCF Ratio: 44.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.90
• Price Target Upside: 65.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Aimia Inc.'s overall score reflects substantial financial and operational challenges, despite some positive signals from the recent earnings call. Persistent losses and liquidity issues are significant concerns, and while technical and valuation indicators suggest caution, strategic initiatives and shareholder alignment provide some hope for improvement.

Positive Factors

Analyst Rating

The rating for Aimia Inc. is set at 'BUY', indicating confidence in the stock's potential.

Company Fundamentals

Fundamentals of the company are improving, which supports the positive sentiment towards the stock.

Operational Performance

The capacity and cost structure of the company are expected to drive performance.

Negative Factors

Earnings Growth

Slowing year-over-year EPS growth is a concern and affects the sentiment negatively.

Economic Uncertainty

There is an uncertainty over tariffs that could impact base metals, affecting sentiment negatively.

Market Sentiment

A selloff in Retail REIT reflects weakened investor sentiment, which could affect perceptions of the market.

Aimia Inc. Business Overview & Revenue Model

Company Description

Aimia Inc. (AIM) is a Canadian investment holding company primarily engaged in making long-term investments in public and private companies across various sectors. The company targets opportunities in diverse industries such as consumer, technology, industrials, and financial services, focusing on businesses with strong growth potential and sustainable competitive advantages.

How the Company Makes Money

Aimia Inc. generates revenue primarily through its investment activities. The company makes money by acquiring substantial interests in companies and earning returns through dividends, capital gains, and appreciation in the value of its investments. Aimia may also realize returns through strategic divestitures or exits from its investment positions. Additionally, the company occasionally engages in partnerships or collaborative ventures that might provide additional revenue streams. Aimia's financial performance is significantly influenced by the market conditions, the performance of its portfolio companies, and its ability to identify and capitalize on investment opportunities.

Aimia Inc. Financial Statement Overview

Summary

Aimia Inc. faces significant financial challenges, with persistent losses impacting profitability and cash flows. Despite a strong equity position and no debt, the company struggles with negative cash flows and operational inefficiencies.

Income Statement

Aimia Inc. shows a volatile revenue pattern with significant fluctuations over the years. The TTM (Trailing-Twelve-Months) revenue increased compared to the previous annual report, but the company is still operating at a net loss. The gross profit margin for the TTM is 46.23%, which is an improvement from the previous periods. However, the negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The company's balance sheet reflects a strong equity position with zero debt in the TTM, resulting in a favorable debt-to-equity ratio. The equity ratio of 55.62% indicates a solid financial structure. However, the declining stockholders' equity over the periods suggests potential risks if losses continue.

Cash Flow

Aimia Inc.'s cash flow statement reveals negative operating and free cash flows in the TTM, indicating liquidity challenges. The fluctuating free cash flow growth rate and negative operating cash flow to net income ratio signal instability in cash generation. Despite this, the company has maintained liquidity through cash reserves.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
468.20M	207.70M	479.40M	13.40M	14.30M	134.00M
	Gross Profit
216.60M	-17.60M	467.40M	-3.00M	3.00M	-32.20M
	EBIT
-28.20M	-107.10M	445.30M	-11.40M	800.00K	-73.20M
	EBITDA
5.40M	-126.40M	462.00M	-11.70M	0.00	38.00M
	Net Income Common Stockholders
-79.40M	-188.00M	440.10M	-17.10M	-15.10M	42.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
380.90M	137.30M	505.30M	34.80M	146.10M	185.20M
	Total Assets
3.40B	963.60M	804.00M	431.00M	444.20M	571.80M
	Total Debt
300.90M	177.90M	0.00	0.00	0.00	6.00M
	Net Debt
-11.00M	-109.10M	-505.30M	-34.80M	-146.10M	-92.60M
	Total Liabilities
3.69B	380.50M	27.10M	27.00M	3.50M	136.20M
	Stockholders Equity
-294.90M	568.60M	776.90M	404.00M	431.30M	435.60M
Cash Flow		Free Cash Flow
-48.00M	-23.20M	-17.70M	21.40M	-32.00M	-117.90M
	Operating Cash Flow
-34.00M	-12.00M	-17.70M	21.40M	-32.00M	-117.90M
	Investing Cash Flow
56.30M	-460.10M	526.00M	-118.90M	108.80M	600.30M
	Financing Cash Flow
41.00M	85.10M	-49.10M	-12.60M	-28.20M	-693.80M

Aimia Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AIM, the sentiment is Negative. The current price of 2.36 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.43, and below the 200-day MA of 2.57, indicating a bearish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 73.05 is Negative, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AIM.

Aimia Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.B	79 Outperform	$8.54B	11.39	38.85%	3.64%	3.76%	14.27%
X	74 Outperform	$14.29B	29.62	11.15%	1.53%	2.56%	35.63%
MTL	73 Outperform	C$1.07B	9.54	11.27%	6.56%	-0.27%	-15.99%
GCG	70 Outperform	C$971.11M	9.18	7.82%	3.75%	36.20%	―
AC	67 Neutral	$4.60B	2.72	112.28%	―	1.93%	-24.67%
Sector *	63 Neutral	$12.88B	9.21	9.18%	4.78%	16.30%	-8.66%
AIM	45 Neutral	C$218.42M	―	-10.56%	―	131.52%	46.07%

Aimia Inc. Corporate Events

Aimia Inc. Announces Election of New Directors

Aimia Inc. announced the results of its Special Meeting of Shareholders, where 64.16% of its common shares were represented. Shareholders voted in favor of the proposed board of directors nominees, with Rhys Summerton and Shahir Guindi receiving significant approval. This election reinforces Aimia’s commitment to its strategic priorities and may impact its future operational and financial strategies.

Aimia Inc. Announces Expiration of Substantial Issuer Bid

Aimia Inc. announced a reminder regarding the expiration of its substantial issuer bid aimed at purchasing and canceling its Preferred Shares in exchange for 9.75% senior unsecured notes due in 2030. The initiative is part of Aimia’s strategic review process to unlock company value and provide shareholders an option to realize investments with improved liquidity and yield compared to existing dividends. The company anticipates reduced liquidity for its Preferred Shares as a result of this move, which is considered a recapitalization effort in the best interest of the company and its security holders.

Aimia Inc. Reports Preliminary Results of Substantial Issuer Bid

Aimia Inc. announced the preliminary results of its substantial issuer bid to purchase and cancel its preferred shares in exchange for 9.75% senior unsecured notes due in 2030. The initiative is part of Aimia’s strategic review process aimed at unlocking company value and providing preferred shareholders with an opportunity for liquidity and higher yields. The board believes this move represents an effective recapitalization strategy, benefiting the company and its stakeholders.

Aimia Extends Substantial Issuer Bid Amid Postal Delays

Aimia Inc. has extended the expiry date of its substantial issuer bid to purchase all preferred shares for cancellation due to delays caused by a Canada Post workers’ strike. The exchange of preferred shares for 9.75% senior unsecured notes, set to mature in 2030, is part of a strategic recapitalization effort aimed at unlocking company value and providing shareholders with improved liquidity and yield opportunities.

Aimia Inc. Announces Major Stock Buyback Plan

Aimia Inc. has announced a substantial issuer bid to purchase and cancel its preferred shares in exchange for senior unsecured notes, aiming to unlock the company’s value through effective recapitalization. The initiative, set to expire on January 10, 2025, offers shareholders a chance to benefit from a higher yield and fixed maturity date associated with the new notes. This strategic move is part of Aimia’s efforts to improve liquidity and investment returns for its stakeholders.

Aimia Inc. Launches Strategic Issuer Bid Initiative

Aimia Inc. has launched a substantial issuer bid to purchase its preferred shares in exchange for 9.75% senior unsecured notes, aiming to enhance liquidity and value for shareholders. This strategic move is expected to generate significant annual cash savings and a substantial gain from the transaction. The initiative marks the first step in Aimia’s strategic review process designed to unlock the company’s value.

Aimia Inc. Reports Robust Q3 2024 Financial Results

Aimia Inc. has demonstrated strong financial performance in the third quarter of 2024, with a 13% increase in consolidated revenue and a 55% rise in adjusted EBITDA. The company attributes its success to strategic initiatives aimed at enhancing shareholder value and operational efficiency, despite facing global economic challenges.