Amrep (AXR) AI Stock Analysis

• Market Cap: $122.46M
• Dividend Yield: N/A
• Average Volume (3M): 12.57K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.51
• Revenue Growth: 30.36%
• EPS Growth: 481.87%
• Country: US
• Employees: 42
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Development
• EPS (TTM): 0.13
• Shares Outstanding: 5,287,449
• 10 Day Avg. Volume: 9,620
• 30 Day Avg. Volume: 12,568
• PEG Ratio: 1.90
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.02
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 1.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: $26.00 ▲( 14.54% Upside)

Amrep's strong financial performance and attractive valuation are the primary drivers of its overall stock score. The financial stability, characterized by minimal leverage and robust cash flow, provides a strong foundation. Technical indicators suggest moderate bullishness, with the stock trading above key short-term averages. The lack of dividend yield is offset by a compelling P/E ratio. However, the absence of earnings call and corporate event data limits the analysis to these aspects.

Amrep Business Overview & Revenue Model

Company Description

Amrep Corporation (AXR) is a publicly traded real estate company primarily engaged in the development and sale of residential lots and homes. The company operates mainly in the Southwestern United States, particularly in New Mexico. Amrep focuses on acquiring, developing, and marketing real estate properties, with a core emphasis on creating residential communities. Its operations are primarily divided into two segments: land development and homebuilding. The company aims to provide quality residential options for buyers while optimizing its land holdings and development projects.

How the Company Makes Money

Amrep Corporation generates revenue primarily through the sale of developed residential lots and the construction and sale of single-family homes. The company purchases large parcels of land, which it then develops into residential communities, subdividing them into individual lots for sale to homebuilders or directly to consumers. In addition to land sales, Amrep constructs homes on some of these lots, selling the completed homes to individual buyers. The company's earnings are influenced by factors such as real estate market conditions, demand for housing in its operating regions, and its ability to efficiently manage land development and construction costs. Partnerships with local contractors, suppliers, and homebuilders also play a crucial role in Amrep's business model, enabling the company to streamline its development and sales processes.

Amrep Financial Statement Overview

Summary

Amrep exhibits solid financial health with strong profitability, minimal leverage, and robust cash flow generation. The company's growth trajectory is positive, supported by effective cost management and a strong equity base. While the financials are mostly strong, historical fluctuations in revenue and cash flow suggest the need for cautious monitoring of market conditions in the real estate sector.

Income Statement

Amrep shows strong profitability with a gross profit margin of 43.27% and a net profit margin of 22.33% in the TTM. The revenue growth rate is impressive at 13.01% over the last year, indicating robust sales performance. EBIT and EBITDA margins are healthy at 22.81% and 22.97% respectively, reflecting efficient operational management. However, the historical volatility in revenue and net income suggests potential cyclical risks in the real estate market.

Balance Sheet

Amrep maintains an exceptionally strong balance sheet with a debt-to-equity ratio of only 0.0002, indicating minimal leverage. The equity ratio is high at 97.70%, showcasing a solid asset base supported by equity. The return on equity (ROE) stands at 10.29%, reflecting efficient use of shareholder funds. The company's low debt levels and substantial equity provide stability and financial resilience.

Cash Flow

The company has a strong cash flow position with a free cash flow growth rate of 40.97%, indicating improved cash generation. The operating cash flow to net income ratio is 1.13, suggesting that the company effectively converts its net income into cash. Additionally, the free cash flow to net income ratio of 1.11 further highlights robust cash flow management. However, the variability in cash flow from year to year should be monitored.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
58.05M	51.37M	48.68M	62.48M	40.07M	18.78M
	Gross Profit
25.13M	14.47M	18.90M	26.66M	14.47M	5.00M
	EBIT
13.24M	7.60M	5.83M	21.30M	9.05M	-2.91M
	EBITDA
13.37M	7.75M	5.89M	21.53M	9.05M	-2.04M
	Net Income Common Stockholders
12.97M	6.69M	21.79M	15.86M	7.39M	-5.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.94M	29.69M	19.99M	15.72M	24.80M	17.50M
	Total Assets
128.94M	122.83M	115.89M	94.92M	97.37M	96.67M
	Total Debt
29.00K	35.00K	44.00K	2.03M	3.45M	3.89M
	Net Debt
-36.91M	-29.66M	-19.95M	-13.69M	-21.35M	-13.61M
	Total Liabilities
2.96M	4.78M	4.89M	11.76M	8.48M	12.03M
	Stockholders Equity
125.98M	118.05M	111.00M	83.16M	88.89M	84.64M
Cash Flow		Free Cash Flow
14.43M	10.26M	6.26M	14.19M	12.60M	756.00K
	Operating Cash Flow
14.61M	10.71M	6.39M	15.48M	12.61M	765.00K
	Investing Cash Flow
4.78M	-457.00K	-131.00K	-1.20M	-5.00K	-9.00K
	Financing Cash Flow
-9.00K	-9.00K	-1.99M	-23.36M	-5.30M	2.51M

Amrep Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXR, the sentiment is Negative. The current price of 22.7 is above the 20-day moving average (MA) of 22.54, above the 50-day MA of 21.53, and below the 200-day MA of 27.07, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AXR.

Amrep Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXR	79 Outperform	$122.46M	9.38	10.82%	―	30.36%	481.87%
LRE	72 Outperform	$18.28M	4.26	18.25%	1.22%	-0.82%	5.30%
LSEA	70 Outperform	$408.52M	41.96	1.50%	―	24.15%	-60.70%
Sector *	60 Neutral	$2.82B	10.38	0.33%	8508.19%	5.98%	-17.49%
ARL	54 Neutral	$215.15M	―	-2.20%	―	-6.48%	-592.10%
AMBR	46 Neutral	$86.18M	―	-95.79%	―	-75.67%	―