AgEagle Aerial Systems (UAVS), an unmanned aerial systems maker, has experienced noteworthy financial growth during the past year. While the company doubled its revenues during the period, its net loss widened.
Despite the company's success in generating more revenues, it has accrued ongoing operating losses over time, leading to questions surrounding its ability to secure capital moving forwards. Investors should note the company’s key performance indicators to understand why avoiding the stock this month could be wise.
Analysis of AgEagle Aerial Systems’ Key Metrics
UAVS’ net income has had a generally downward trend over the past three years. The net income for June 30th, 2020, was -$2.88 million, which decreased by 4.79% to -$2.89 million on September 30th, 2020. Over the next nine months, until June 30th, 2021, net income decreased by 59.87% to -10.88 million.
The most drastic decrease occurred at the end of 2021 when net income decreased by 74.34% to -$30.11 million. This downward trend continued in 2022, with net income decreasing again, this time by 36.76%, to -$35.70 million on June 30th, 2022. The most recent value, as of December 31st, 2022, shows that net income has decreased yet again by a further 8.17% to -$58.25 million.
The revenue of UAVS has shown an overall upward trend over the given period. Starting at $638,113 at the end of June 2020, revenue increased to $1,909,425 by the end of December 2022. This represents an overall growth rate of 199.7%. Fluctuations in the growth rate can be observed, with a more rapid increase of 264.5% between June 2020 and June 2021, followed by a slower but still impressive growth rate of 51.9% from June 2021 to December 2022.
Overall, the gross margin of UAVS has had fluctuations over the past two years, though it slightly increased over time with a growth rate of 8.9%. The first value was 0.47% in June 2020, dropped to 0.453% in September 2020, then recovered to 0.446% in December 2020. Its highest value was 0.553% in March 2021, and its last value was 0.43% in December 2022.
The current ratio of UAVS has seen a large increase from June 2020 (12.1) to September 2020 (57.1). However, since then, the current ratio has generally been decreasing, with the most recent value from December 2022 (2.7) being lower than the June 2021 value (5.1). Looking at growth over the series, the current ratio has increased by 119.6% since June 2020 and decreased by 54.4% since September 2020.
Analysis of UAVS Share Price Volatility
The trend of UAVS share price shows general volatility, with frequent ups and downs. From October 21, 2022, to April 17, 2023, and April 17, 2023, the share price grew from $0.45 to $0.43, a growth rate of -4.44%. Here is a chart of UAVS' price over the past 180 days.
UAVS Stock Ratings: Momentum, Growth, and Value
UAVS has been given an overall POWR Grade of F. Its latest rank in the Industrial - Machinery category is 80th out of 82 stocks, with a lower rank denoting a higher score. The grade has fluctuated between an F and a D since October 2022.
From the POWR Ratings for UAVS, the three most noteworthy dimensions are momentum, growth, and value. Momentum was highest in November 2022 with a rating of 60, while Growth and Value both reached their peak ratings in January 2023 at 67 and 31, respectively. There has been a general trend of consistent growth in the momentum rating, increasing from 54 in October 2022 to 69 in February 2023. While Growth and Value decreased slightly in February 2023, they still remained comparatively higher than their October 2022 ratings.
Other stocks in the Industrial - Machinery sector that may be worth considering are ABB Ltd (ABB), Powell Industries Inc. (POWL), and Tennant Company (TNC) -- they have better POWR Ratings.
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UAVS shares were trading at $0.41 per share on Tuesday afternoon, down $0.04 (-8.91%). Year-to-date, UAVS has gained 17.14%, versus a 8.66% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
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