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Airboss of America (TSE:BOS)
:BOS
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Airboss of America
(TSX:BOS)
45Neutral
Positive Factors
Analyst Recommendation
Analyst recommends a 'BUY' rating with a target of C$8.00, indicating confidence in the company's future performance.
Financial Flexibility
The forecast update is based on new credit facilities, suggesting improved financial flexibility for the company.
Negative Factors
Equity Financing
Resuming coverage following a significant C$100MM equity financing, highlighting strengthened capital resources.
Airboss of America (BOS) vs. S&P 500 (SPY)
Market Cap
C$101.74M
Dividend Yield4.58%
Average Volume (3M)22.71K
Price to Earnings (P/E)―
Beta (1Y)1.39
Revenue Growth-13.24%
EPS Growth-955.23%
CountryCA
Employees1,197
SectorBasic Materials
Sector Strength63
IndustryIndustrial Equipment Distributors
Share Statistics
EPS (TTM)-1.03
Shares Outstanding27,130,556
10 Day Avg. Volume34,153
30 Day Avg. Volume22,713
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.19
Price to Cash Flow (P/CF)-16.90
P/FCF Ratio9.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$5.92Price Target Upside54.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Airboss of America Business Overview & Revenue Model
Company DescriptionAirBoss of America Corp (BOS) is a leading manufacturer and supplier of rubber-based products and engineered solutions, catering to a diverse range of industries including automotive, defense, and healthcare. The company operates through three primary segments: Rubber Solutions, Engineered Products, and AirBoss Defense Group. Its core offerings include custom rubber compounding, anti-vibration solutions, and personal protective equipment such as gas masks and filters.
How the Company Makes MoneyAirBoss of America generates revenue through the production and sale of rubber compounds and engineered products across its three main business segments. The Rubber Solutions segment offers custom rubber formulations to manufacturers in sectors such as mining, oil and gas, and transportation. The Engineered Products segment supplies anti-vibration and noise suppression solutions primarily to the automotive industry. The AirBoss Defense Group provides protective equipment and solutions like gas masks, boots, and gloves to military and first responder markets. Key revenue streams include long-term supply contracts, product sales, and strategic partnerships with government agencies and industrial clients, all of which contribute significantly to its earnings.
Airboss of America Financial Statement Overview
Summary
AirBoss of America is facing financial difficulties across all major statements. Income is declining with consistent losses, and balance sheet metrics reveal increased leverage and negative returns. Cash flow generation is inconsistent, showing potential liquidity risks. The company needs strategic adjustments to improve profitability and financial stability.Income Statement
The company's income statement reveals significant challenges. Gross profit margins have decreased over recent years, and the net profit margin is negative, indicating losses. Revenue has been declining, with a notable drop from 2021 to 2024. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies and financial struggles.25
Negative
Balance Sheet
The balance sheet shows a concerning debt-to-equity ratio, which has increased over time, indicating higher financial leverage. Return on Equity (ROE) is negative, reflecting the company's inability to generate profit from its equity. However, the equity ratio remains fairly stable, suggesting a reasonable proportion of assets financed by equity.45
Neutral
Cash Flow
Cash flow analysis highlights some issues. The operating cash flow to net income ratio is positive, indicating cash flow generation despite net losses. However, free cash flow has been inconsistent, with growth turning negative in recent periods. The free cash flow to net income ratio suggests challenges in converting revenue into free cash flow.35
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 387.76M | 426.02M | 477.15M | 586.86M | 501.57M | 328.13M | Gross Profit |
| 43.82M | 58.41M | 24.13M | 136.30M | 135.92M | 48.75M | EBIT |
| -42.30M | -33.52M | -34.67M | 58.71M | 82.20M | 18.37M | EBITDA |
| -21.04M | -11.18M | -12.77M | 79.59M | 100.38M | 31.72M | Net Income Common Stockholders |
| -53.73M | -41.75M | -31.89M | 46.70M | 56.26M | 10.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.19M | 28.99M | 18.55M | 7.13M | 86.97M | 121.00K | Total Assets |
| 342.01M | 356.66M | 440.77M | 443.26M | 367.37M | 249.66M | Total Debt |
| 119.40M | 131.34M | 143.69M | 80.61M | 90.73M | 74.14M | Net Debt |
| 111.21M | 102.36M | 125.14M | 73.48M | 3.76M | 74.02M | Total Liabilities |
| 199.24M | 207.80M | 243.77M | 208.12M | 172.78M | 123.69M | Stockholders Equity |
| 142.77M | 148.86M | 197.00M | 235.15M | 194.59M | 125.98M |
| Cash Flow | Free Cash Flow | ||||
| 3.05M | 32.41M | -40.97M | -15.97M | 89.47M | -7.78M | Operating Cash Flow |
| 13.78M | 40.92M | -30.77M | 2.02M | 104.40M | 11.71M | Investing Cash Flow |
| -10.68M | -8.46M | -10.19M | -64.56M | -8.54M | -19.48M | Financing Cash Flow |
| -9.44M | -22.20M | 52.20M | -17.53M | -9.59M | -10.00M |
Airboss of America Technical Analysis
Negative
3.82
Price Trends
3.98
Negative
4.04
Negative
4.57
Negative
Market Momentum
-0.04
Positive
43.52
Neutral
46.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BOS, the sentiment is Negative. The current price of 3.82 is below the 20-day moving average (MA) of 3.99, below the 50-day MA of 3.98, and below the 200-day MA of 4.57, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 46.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BOS.
Airboss of America Peers Comparison
Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.16B | 12.68 | 4.98% | 1.99% | 14.14% | 21.46% | |
73 Outperform | $237.55M | 8.50 | 7.46% | 7.21% | -1.93% | 3.61% | |
72 Outperform | C$11.19B | ― | -5.31% | ― | 1.44% | -183.14% | |
60 Neutral | $560.09M | 5.83 | 6.57% | 2.75% | -3.36% | -46.97% | |
60 Neutral | C$3.60B | 40.44 | 5.30% | ― | -7.46% | -49.87% | |
46 Neutral | $2.64B | -3.89 | -29.36% | 3.33% | 2.89% | -29.66% | |
45 Neutral | C$101.74M | ― | -14.76% | 4.58% | -13.24% | -955.23% |
* Basic Materials Sector Average
Performance Comparison
TSE:BOS
Airboss of America
3.75
-1.29
-25.60%
TSE:CAE
CAE
34.98
8.54
32.30%
TSE:LNR
Linamar
51.23
-18.06
-26.07%
TSE:MRE
Martinrea International
7.57
-3.73
-33.00%
TSE:XTC
Exco Technologies
6.04
-0.99
-14.03%
TSE:ATS
ATS Corporation
36.76
-12.74
-25.74%
Airboss of America Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -2.55% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While there were significant achievements in the defense sector and an increase in gross profit, the company faced challenges with reduced volumes and potential tariff impacts. The introduction of the silicone line and improvements in defense contracts are positive, but these are offset by volume reductions and cash flow issues.Highlights
Strong Performance in Defense Segment
The defense business saw improvements in both revenue and gross profit, driven by new business awards and a strong order backlog, expected to continue into 2025 with over $200 million in government contracts.
Increased Gross Profit
Consolidated gross profit for Q4 of 2024 increased by $10.2 million to $15.3 million compared to Q4 of 2023, primarily due to an $8 million non-cash write-down in 2023 and improvements in defense products.
Successful Launch of Silicone Line
The launch of a new silicone line has been successful, with internal products converted to the new silicone and trials underway with external customers, positioning the company for expanded margins.
Increase in AMP Sales
Net sales for AirBoss Manufactured Products (AMP) in Q4 2024 increased by 9.4% compared to Q4 of 2023 due to higher volumes in the defense products business.
Lowlights
Overall Volume Reduction
AirBoss experienced an overall volume reduction in Q4 2024, primarily driven by reductions in the rubber molded products business and lower volumes at AirBoss Rubber Solutions (ARS).
Decreased Net Sales in ARS
Net sales at AirBoss Rubber Solutions (ARS) for Q4 2024 decreased by 13.1% compared to Q4 2023, with a volume decrease of 22.5% across most customer sectors.
Negative Free Cash Flow
For the year ended December 2024, free cash flow was negative $1.8 million, a significant decline from $32.5 million in 2023.
Potential Impact of Tariffs
The company faces potential challenges due to the threat of tariffs and geopolitical uncertainties, which could affect cross-border operations and customer demand.
Company Guidance
In the AirBoss of America Fourth Quarter 2024 conference call, management provided guidance reflecting both challenges and opportunities for the upcoming year. The company is entering 2025 with over $200 million in government contracts, primarily in its defense business, despite facing economic headwinds and market softness in 2024. AirBoss is focused on executing these contracts and converting key opportunities aligned with its strategic plan. The company's ARS segment experienced a 13.1% decrease in net sales to $47.3 million, while AMP saw a 9.4% increase to $48.2 million in Q4 2024. The firm is also navigating potential impacts from tariffs, particularly concerning products manufactured in Canada and sold into the U.S., and is actively evaluating contingency plans. The launch of a new silicone production line is expected to support margin expansion. Looking ahead, management aims to sustain growth by diversifying its product range, enhancing operational efficiencies, and exploring acquisition opportunities while being mindful of geopolitical risks and trade restrictions that could affect its cross-border operations.Airboss of America Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
AirBoss Secures $82.3 Million Contract for Defense Overboots
Positive
Jan 29, 2025
AirBoss Defense Group, part of AirBoss of America, has secured a significant contract with the U.S. government valued at up to $82.3 million for their Molded AirBoss Lightweight Overboot (MALO). This contract highlights AirBoss’s ongoing success and leadership in providing top-tier personal protective equipment globally, building on their extensive history of supplying overboots to over sixty countries and enhancing their growth in the defense sector.
AirBoss Secures New Credit Facilities for Growth
Dec 2, 2024
AirBoss of America has secured new credit facilities totaling $180 million, replacing its previous credit arrangements. These new facilities will offer financial flexibility to support the company’s strategic transition, as it explores opportunities to enhance shareholder value through potential strategic divestitures and real estate asset monetization. The company remains focused on transforming into a global leader in custom rubber compounding and other industries it serves.
AirBoss of America Sees Promising Growth in Defense Sector
Nov 6, 2024
AirBoss of America reports increased contract awards in its defense business, signaling a potential recovery from recent economic challenges. The company secured significant contracts with NATO and the U.S. Department of Health and Human Services, while continuing to focus on operational efficiency and strategic growth.
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.