Analysts Are Optimistic We'll See A Profit From Air Industries Group (NYSEMKT:AIRI)

With the business potentially at an important milestone, we thought we'd take a closer look at Air Industries Group's (NYSEMKT:AIRI) future prospects. Air Industries Group, an aerospace and defense company, designs, manufactures, and sells structural parts and assemblies that focus on flight safety. The US$49m market-cap company posted a loss in its most recent financial year of US$2.6m and a latest trailing-twelve-month loss of US$2.3m shrinking the gap between loss and breakeven. The most pressing concern for investors is Air Industries Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Air Industries Group

Expectations from some of the American Aerospace & Defense analysts is that Air Industries Group is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$2.9m in 2021. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 202% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Air Industries Group's growth isn’t the focus of this broad overview, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Air Industries Group currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Air Industries Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Air Industries Group's company page on Simply Wall St. We've also put together a list of important factors you should further research:

1. Historical Track Record: What has Air Industries Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Air Industries Group's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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