AeroCentury Story

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ACY -- USA Stock  

USD 9.75  1.46  17.61%

The stock experiences an active upward rally. AeroCentury Corp EBITDA Margin is fairly stable at the moment as compared to the past year. AeroCentury Corp reported EBITDA Margin of 0.036 in 2020. Enterprise Value over EBITDA is likely to rise to 88.57 in 2021, whereas Earnings before Tax are likely to drop (19.6 M) in 2021. As many millenniums are trying to avoid industrials space, it makes sense to break down AeroCentury Corp a little further and try to understand its current market patterns. What exactly are AeroCentury Corp shareholders getting in February?
Published over three weeks ago
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Should I hold on to my AeroCentury (NYSEMKT:ACY) position?
This firm has 112.62 M in debt. The company has a current ratio of 4.31, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. AeroCentury Corp holds a performance score of 9 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of -2.157, which signifies a somewhat significant risk relative to the market. Let's try to break down what AeroCentury's beta means in this case. As returns on the market increase, returns on owning AeroCentury Corp are expected to decrease by larger amounts. On the other hand, during market turmoil, AeroCentury Corp is expected to outperform it. Although it is essential to pay attention to AeroCentury Corp historical returns, it is also good to be reasonable about what you can do with equity current trending patterns. Our philosophy towards foreseeing future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if AeroCentury Corp expected return of 7.26 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use AeroCentury Corp standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to analyze future returns on AeroCentury Corp.
AeroCentury Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of AeroCentury Corp, including all of AeroCentury Corp's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of AeroCentury Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall AeroCentury Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

How important is AeroCentury Corp's Liquidity

AeroCentury Corp financial leverage refers to using borrowed capital as a funding source to finance AeroCentury Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AeroCentury Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between AeroCentury Corp's total debt and its cash.

How AeroCentury utilizes its cash?

To perform a cash flow analysis of AeroCentury Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AeroCentury Corp is receiving and how much cash it distributes out in a given period. The AeroCentury Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. AeroCentury Corp Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. AeroCentury Corp reported Net Cash Flow from Operations of 9.4 Million in 2020

Purchase by Michael Magnusson of 1000 shares of AeroCentury Corp

Legal trades by AeroCentury Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
AeroCentury insider trading alert for perchase of common stock by Michael Magnusson, President, on 23rd of August 2020. This event was filed by Aerocentury Corp with SEC on 2019-11-22. Statement of changes in beneficial ownership - SEC Form 4. Michael Magnusson currently serves as president, director and managing director of jmc of AeroCentury Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is AeroCentury Corp valued reasonably by the market?

AeroCentury Corp reported the last year's revenue of 17.53 M. Reported Net Loss for the year was (34.82 M) with profit before taxes, overhead, and interest of 42.59 M.

Liabilities Breakdown

Deposit Liabilities955,367
Total Liabilities153.72 Million
Current Liabilities1.92 Million
Long-Term Liabilities7,867.42
Tax Liabilities2.5 Million

Over 3 percent rise for AeroCentury Corp. What does it mean for investors?

AeroCentury Corp current sortino ratio rises over 0.71. AeroCentury Corp is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about AeroCentury Corp implied risk.

Our Final Take On AeroCentury Corp

While few other entities within the rental & leasing services industry are still a little expensive, even after the recent corrections, AeroCentury Corp may offer a potential longer-term growth to investors. While some investors may not share our view, we believe that right now is not a good time to increase your holdings in AeroCentury. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to AeroCentury Corp.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of AeroCentury Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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