Cpi Aerostructures Inc (NYSE: CVU)

Sector: Industrials Industry: Aerospace & Defense CIK: 0000889348
Market Cap 62.01 Mn
P/B 2.48
P/E -110.00
P/S 0.87
ROIC (Qtr) 1.05
Div Yield % 0.00
Rev 1y % (Qtr) -0.78
Total Debt (Qtr) 26.02 Mn
Debt/Equity (Qtr) 1.04

About

CPI Aerostructures, Inc., or CPI Aero, operates in the aerospace and defense (A&D) industry, with its stock symbol being CVU. The company has built a reputation over its 40 years of operation by providing high-quality products and services to its clients. CPI Aero specializes in design, engineering, manufacturing, build, repair and overhaul (MRO) services, supply chain and kitting services for the A&D markets. Its product portfolio is diverse, encompassing Aerostructures, Aerosystems, Large Diameter Tube Bending, Complex Specialty Welding, and Electrical...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 72.27M provides 2.78x coverage of total debt 26.02M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 1.15M exceeds capital expenditure of 137472 by 8.39x, indicating strong organic growth funding capability.
  • Tangible assets of 72.27M provide exceptional 36.26x coverage of deferred revenue 1.99M, showing strong service capability backing.
  • Robust tangible asset base of 72.27M provides 4.56x coverage of working capital 15.84M, indicating strong operational backing.
  • Tangible assets of 72.27M provide robust 11.02x coverage of other current liabilities 6.56M, indicating strong asset backing.

Bear case

  • Operating cash flow of 1.29M barely covers its investment activities of (137472), with a coverage ratio of -9.39, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.29M provides insufficient coverage of deferred revenue obligations of 1.99M, which is 0.65x, raising concerns about future service delivery capabilities.
  • High receivables of 40.10M relative to inventory of 593605 (67.55 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 1.29M shows concerning coverage of stock compensation expenses of 665929, with a 1.94 ratio indicating potential earnings quality issues.
  • Operating cash flow of 1.29M provides minimal -2.96x coverage of tax expenses of (435553), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Product and Service Breakdown of Revenue (2024)

Timing of Transfer of Good or Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Aerospace & Defense
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GE General Electric Co 342.94 Bn 42.54 7.80 20.84 Bn
2 RTX RTX Corp 252.05 Bn 38.24 2.93 40.71 Bn
3 BA Boeing Co 174.43 Bn -17.16 2.16 53.35 Bn
4 LMT Lockheed Martin Corp 126.61 Bn 30.15 1.73 22.19 Bn
5 GD General Dynamics Corp 95.62 Bn 22.69 1.86 8.01 Bn
6 NOC Northrop Grumman Corp /De/ 89.30 Bn 22.22 2.18 16.96 Bn
7 HWM Howmet Aerospace Inc. 88.16 Bn 60.80 11.05 3.19 Bn
8 TDG TransDigm Group INC 80.97 Bn 43.39 9.17 30.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.19 3.58
EV to Cash from Ops. EV/CFO 68.16 58.38
EV to Debt EV to Debt 3.38 98.04
EV to EBIT EV/EBIT 133.31 19.42
EV to EBITDA EV/EBITDA 108.10 33.60
EV to Free Cash Flow [EV/FCF] EV/FCF 76.29 91.66
EV to Market Cap EV to Market Cap 1.42 1.13
EV to Revenue EV/Rev 1.23 11.27
Price to Book Value [P/B] P/B 2.48 4.81
Price to Earnings [P/E] P/E -110.00 31.79
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.75
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 22.95
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 14.15
Interest Coverage Int. cover (Qtr) 0.40 -18.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 63.61 -50.32
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -68.02 1,609.43
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.75
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -98.68 -30.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -87.86 10.65
EBIT Growth (1y) % EBIT 1y % (Qtr) -89.36 -26.90
EBT Growth (1y) % EBT 1y % (Qtr) -126.51 -27.25
EPS Growth (1y) % EPS 1y % (Qtr) -102.88 -99.21
FCF Growth (1y) % FCF 1y % (Qtr) -38.47 6.61
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -35.41 -5.55
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.97 0.51
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.02 1.76
Current Ratio Curr Ratio (Qtr) 1.61 3.72
Debt to Equity Ratio Debt/Equity (Qtr) 1.04 0.07
Interest Cover Ratio Int Coverage (Qtr) 0.40 -18.00
Times Interest Earned Times Interest Earned (Qtr) 0.40 -18.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.10 -345.84
EBIT Margin % EBIT Margin % (Qtr) 0.92 -382.63
EBT Margin % EBT Margin % (Qtr) -1.40 -387.93
Gross Margin % Gross Margin % (Qtr) 15.30 -33.31
Net Profit Margin % Net Margin % (Qtr) -0.80 -389.13