AirJoule Technologies Corp. (NASDAQ: AIRJ)

Sector: Industrials Industry: Building Products & Equipment CIK: 0001855474
Market Cap 21.65 Mn
P/B 0.08
P/E -23.36
P/S 0.00
ROIC (Qtr) -2.87
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 132,047.00
Debt/Equity (Qtr) 0.00
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About

Montana Technologies Corp., known by its stock symbol AIRJ, operates in the power and digital infrastructure industries as a blank check company. Its primary business involves identifying and completing an initial business combination with a target company operating within the aforementioned industries. The company's revenue generation strategy is centered around the sale of Class A common stock and private placement warrants during its Initial Public Offering (IPO). Specifically, Montana Technologies Corp. sold 28,750,000 units in its IPO, each...

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Investment thesis

Bull case

  • Healthy cash reserves of 26.01M provide 772.73x coverage of short-term debt 33657, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 372.73M provides 2822.71x coverage of total debt 132047, indicating robust asset backing and low credit risk.
  • Retained earnings of 211.91M provide full 2153.75x coverage of long-term debt 98390, indicating strong internal capital position.
  • Robust tangible asset base of 372.73M provides 14.39x coverage of working capital 25.89M, indicating strong operational backing.
  • Long-term investments of 344.66M provide solid 3503x coverage of long-term debt 98390, indicating strategic financial planning.

Bear case

  • Operating cash flow of (6.74M) barely covers its investment activities of (12.77M), with a coverage ratio of 0.53, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (12.77M) provide weak support for R&D spending of 991640, which is -12.88x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 26.01M provide limited coverage of acquisition spending of (12.75M), which is -2.04x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (6.74M) shows concerning coverage of stock compensation expenses of 4.18M, with a -1.61 ratio indicating potential earnings quality issues.
  • Free cash flow of (6.76M) provides weak coverage of capital expenditures of 21035, with a -321.23 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Building Products & Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TT Trane Technologies plc 104.89 Bn 35.94 4.92 4.62 Bn
2 JCI Johnson Controls International plc 91.64 Bn 26.98 3.82 9.71 Bn
3 CARR CARRIER GLOBAL Corp 56.66 Bn 38.18 2.61 12.25 Bn
4 LII Lennox International Inc 19.91 Bn 24.71 3.83 1.77 Bn
5 CSL Carlisle Companies Inc 17.50 Bn 23.63 3.49 2.88 Bn
6 MAS Masco Corp /De/ 15.94 Bn 19.68 2.11 3.17 Bn
7 OC Owens Corning 13.83 Bn 13.90 1.63 5.61 Bn
8 WMS Advanced Drainage Systems, Inc. 13.26 Bn 28.18 4.44 1.45 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.02 2.00
EV to Cash from Ops. EV/CFO 1.29 13.48
EV to Debt EV to Debt -66.01 10.94
EV to EBIT EV/EBIT 1.03 24.16
EV to EBITDA EV/EBITDA 0.66 -11.14
EV to Free Cash Flow [EV/FCF] EV/FCF 1.29 46.78
EV to Market Cap EV to Market Cap -0.40 1.12
EV to Revenue EV to Revenue 0.00 2.81
Price to Book Value [P/B] P/B 0.08 4.24
Price to Earnings [P/E] P/E -23.36 47.40
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.80
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 11.22
Dividend per Basic Share Div per Share (Qtr) 0.00 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.90
Interest Coverage Interest Coverage 0.00 111.58
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -125.37 -24.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -15.25 61.26
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.67
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -100.41 -186.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 80.12 -57.93
EBIT Growth (1y) % EBIT 1y % (Qtr) -102.74 -102.26
EBT Growth (1y) % EBT 1y % (Qtr) -102.74 -299.15
EPS Growth (1y) % EPS 1y % (Qtr) -102.72 -598.34
FCF Growth (1y) % FCF 1y % (Qtr) 70.01 89.70
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 -3.62
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.88
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.13
Cash Ratio Cash Ratio (Qtr) 13.21 1.57
Current Ratio Curr Ratio (Qtr) 14.15 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.79
Interest Cover Ratio Interest Cover Ratio 0.00 111.58
Times Interest Earned Times Interest Earned 0.00 111.58
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 3.54
EBIT Margin % EBIT Margin % 0.00 1.23
EBT Margin % EBT Margin % 0.00 -1.76
Gross Margin % Gross Margin % 0.00 28.65
Net Profit Margin % Net Profit Margin % 0.00 -3.80