Last Updated: 16 Sep 2024
Executive Summary
Airgain Inc. (AIRG) is a small-cap company in the manufacturing sector with a market capitalization of $83.07 million. Despite strong revenue growth, the company has been struggling with profitability, posting negative earnings per share (EPS) and EBITDA. Analysts remain cautiously optimistic about the stock, with a consensus rating of "Buy" and an average target price of $8.
Company Overview
Airgain Inc. designs, develops, and manufactures wireless connectivity solutions for various industries, including mobile broadband, enterprise, and automotive. The company's products include antennas, repeaters, and other devices that enhance wireless signal strength and coverage.
Fundamental Analysis
Revenue: Airgain has experienced consistent revenue growth in recent years, with revenue increasing from $38.5 million in 2020 to $53.2 million in the trailing twelve months (TTM).
Profitability: The company has been struggling with profitability, posting negative EPS and EBITDA. The profit margin for the TTM is -0.232, and the operating margin is -0.165.
Valuation: Based on the current stock price of $7.2, Airgain trades at a price-to-sales (P/S) ratio of 1.562 and a price-to-book (P/B) ratio of 2.63. The forward price-to-earnings (P/E) ratio is 26.25.
Technical Analysis
Trend: The stock has been trending sideways since early 2023, with support at around $5.50 and resistance at around $8.00.
Moving Averages: The 50-day moving average is currently at $7.13, and the 200-day moving average is at $5.26. The stock is currently trading above both moving averages.
Relative Strength Index (RSI): The RSI is currently at 52.5, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, Airgain is expected to continue to experience revenue growth. However, profitability remains a concern. The stock is currently trading near its support level of $5.50, and a break below this level could lead to further downside.
Long Term Outlook
In the long term, Airgain has the potential to benefit from the growing demand for wireless connectivity solutions. However, the company needs to improve its profitability to sustain its growth. If Airgain can successfully execute its growth strategy and improve its margins, the stock could have significant upside potential.
Analyst Recommendations
Analysts have a consensus rating of "Buy" on Airgain Inc. The average target price is $8, implying a potential upside of 11.1% from the current price. Three analysts recommend buying the stock, while none recommend selling it.
