Last Updated: 16 Sep 2024
Executive Summary
CPI Aerostructures Inc. (CVU) is a leading manufacturer of aircraft structural parts for fixed-wing aircraft and helicopters. The company has a strong financial position with a market capitalization of $38.33 million, EBITDA of $6.34 million, and EPS of $1.33. CVU's stock price is currently trading at $2.94, which is below its 52-week high of $3.40. The company has a trailing P/E ratio of 2.21 and a forward P/E ratio of 6.54. Analysts have a hold rating on the stock with a target price of $4.00.
Company Overview
CPI Aerostructures was founded in 1992 and is headquartered in Edgewood, New York. The company has over 1,300 employees and operates manufacturing facilities in the United States, the United Kingdom, and Mexico. CVU's products are used in a variety of aircraft, including the Boeing 737, the Airbus A320, and the Sikorsky S-92.
Fundamental Analysis
CVU's financial performance has been strong in recent years. The company's revenue has grown by an average of 10% per year over the past five years. CVU's profit margin has also improved in recent years, reaching 19.9% in 2023. The company's balance sheet is also strong, with a debt-to-equity ratio of 0.58.
Technical Analysis
CVU's stock price has been trading in a range between $2.15 and $3.40 over the past year. The stock is currently trading near the bottom of this range. The 50-day moving average is $2.575 and the 200-day moving average is $2.55. The relative strength index (RSI) is 45.5, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
CVU's stock price is likely to remain range-bound in the short term. The company's financial performance is strong, but the stock is trading at a discount to its peers. The 50-day moving average and the 200-day moving average are both acting as resistance levels. The RSI is also indicating that the stock is neither overbought nor oversold.
Long Term Outlook
CVU's long-term outlook is positive. The company is a leader in the aircraft structural parts market and is well-positioned to benefit from the growing demand for aircraft. The company's strong financial position and experienced management team should also help to drive long-term growth.
Analyst Recommendations
Analysts have a hold rating on CVU with a target price of $4.00. The analysts believe that CVU is a well-run company with a strong financial position. However, the analysts are concerned about the company's exposure to the cyclical aerospace industry.
