Aeorema Communications (AEO) AI Stock Analysis

• Market Cap: £6.35M
• Dividend Yield: 4.26%
• Average Volume (3M): 11.09K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.36
• Revenue Growth: 0.58%
• EPS Growth: -21.54%
• Country: UK
• Employees: 74
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.03
• Shares Outstanding: 9,693,000
• 10 Day Avg. Volume: 17,297
• 30 Day Avg. Volume: 11,086
• PEG Ratio: -1.05
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 14.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: 70.00p ▼(-2.10% Downside)

Aeorema Communications' stock score is primarily driven by strong technical indicators, despite overbought conditions. Financial performance shows stability but is hampered by declining revenue and cash flow. The valuation is less favorable due to a high P/E ratio, though the dividend yield offers some appeal.

Aeorema Communications Business Overview & Revenue Model

Company Description

Aeorema Communications (AEO) is a leading provider of communication solutions specializing in delivering strategic messaging and innovative digital experiences across various sectors, including corporate communications, event management, and audience engagement. The company focuses on creating compelling narratives and immersive experiences that enhance brand visibility and foster connections between organizations and their stakeholders. AEO's core services encompass event production, digital content creation, and strategic consulting aimed at helping clients effectively communicate their messages in an increasingly digital world.

How the Company Makes Money

Aeorema Communications generates revenue through a diversified business model that includes service fees for event management and production, consulting fees for strategic communication services, and revenue from digital content creation projects. Key revenue streams include long-term contracts with corporate clients for ongoing communication services, one-time fees for specific events or projects, and partnerships with technology providers that enhance their service offerings. Additionally, AEO may leverage sponsorship opportunities during events, further contributing to its earnings. The company's ability to adapt to market trends and foster strong client relationships plays a significant role in its financial performance.

Aeorema Communications Financial Statement Overview

Summary

Aeorema Communications has a mixed financial profile. The income statement shows declining margins and stagnant revenue growth, indicating profitability challenges. However, the balance sheet remains strong with low debt levels, and cash flow generation is robust despite a subtle decline in growth. Overall, the company is financially stable but faces risks in maintaining profitability and growth momentum.

Income Statement

The income statement reveals a company with fluctuating performance. Gross profit margin is decent, but there's a notable decline from prior years, indicating potential cost management issues. Net profit margin has also decreased, showing reduced profitability. Revenue growth is stagnant, reflecting challenges in expanding the customer base or product offerings. The EBIT and EBITDA margins have dropped significantly, suggesting operational inefficiencies or increased expenses.

Balance Sheet

The balance sheet is relatively strong, with a solid equity base and low debt levels, resulting in a favorable debt-to-equity ratio. Return on equity is positive but has decreased, indicating a slight decline in efficiency with which equity is used to generate profits. The equity ratio remains stable, showcasing a healthy balance between assets and equity.

Cash Flow

The cash flow statement is positive with strong free cash flow generation, although there is a subtle decline in growth. Operating cash flow remains robust relative to net income, indicating good cash generation from core operations. However, the decline in free cash flow growth suggests the need for improved cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.41M	20.41M	20.29M	20.23M	12.21M	5.09M
Gross Profit	3.30M	3.37M	3.77M	4.33M	2.95M	1.09M
EBITDA	547.76K	474.64K	742.71K	1.33M	1.01M	-8.29K
Net Income	238.12K	238.12K	296.71K	757.18K	639.34K	-164.93K
Balance Sheet
Total Assets	10.83M	10.83M	9.02M	7.65M	6.49M	3.24M
Cash, Cash Equivalents and Short-Term Investments	3.10M	3.10M	3.12M	2.44M	1.71M	1.10M
Total Debt	500.75K	500.75K	641.79K	832.86K	1.05M	275.91K
Total Liabilities	8.11M	8.11M	6.22M	4.84M	4.23M	1.72M
Stockholders Equity	2.72M	2.72M	2.81M	2.81M	2.25M	1.51M
Cash Flow
Free Cash Flow	366.17K	351.95K	1.15M	1.13M	742.46K	-767.50K
Operating Cash Flow	489.19K	474.98K	1.21M	1.46M	921.94K	-708.33K
Investing Cash Flow	-265.02K	-219.14K	-160.74K	-502.31K	-253.68K	-161.18K
Financing Cash Flow	-273.62K	-273.62K	-369.47K	-224.59K	-55.56K	250.00K

Aeorema Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AEO, the sentiment is Positive. The current price of 71.5 is above the 20-day moving average (MA) of 62.00, above the 50-day MA of 57.77, and above the 200-day MA of 50.41, indicating a bullish trend. The MACD of 3.17 indicates Negative momentum. The RSI at 99.43 is Negative, neither overbought nor oversold. The STOCH value of 80.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AEO.

Aeorema Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEO	―	£6.35M	26.52	8.62%	4.26%	0.58%	-21.54%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
OMIP	―	£8.34M	―	6.49%	―	-14.03%	-142.86%
ALRT	―	$54.62M	―	―	―	―	―
ZIN	―	£12.12M	-3.15	―	―	-19.68%	-72.15%

Aeorema Communications Corporate Events

Aeorema’s Cheerful Twentyfirst Gains Momentum in North America

Aeorema Communications plc announced that its brand experience agency, Cheerful Twentyfirst, has experienced significant momentum in North America, particularly after a successful September. The agency delivered a range of business events, including a major brand activation for The Wall Street Journal and an immersive concert for Instacart. This growth reflects strong client relationships and positions the company for continued success in the U.S. and EMEA markets, enhancing its industry standing and stakeholder value.

The most recent analyst rating on (GB:AEO) stock is a Buy with a £63.00 price target. To see the full list of analyst forecasts on Aeorema Communications stock, see the GB:AEO Stock Forecast page.

Aeorema Communications to Host Live Investor Update

Aeorema Communications plc announced that its CEO, Steve Quah, and Group Financial Controller, Jamie Blackwell, will host a live investor update on October 7, 2025, via the Investor Meet Company platform. This presentation is open to all existing and potential shareholders, allowing them to submit questions and gain insights into the company’s operations and strategic direction. This initiative reflects Aeorema’s commitment to transparent communication with stakeholders and may enhance its industry positioning by engaging directly with investors.

The most recent analyst rating on (GB:AEO) stock is a Buy with a £63.00 price target. To see the full list of analyst forecasts on Aeorema Communications stock, see the GB:AEO Stock Forecast page.

Aeorema Communications Reports Record Revenue and Strategic Growth

Aeorema Communications plc announced its unaudited interim results for the 12 months ended 30 June 2025, reporting record revenue of £20.4 million and an underlying profit before taxation of £615,000. The company has successfully completed a cost-reduction and rebalancing program, positioning itself for enhanced efficiency and profitability in FY2026. Aeorema’s operational highlights include strong performance at the Cannes Lions 2025, expansion into international markets, and multiple industry awards. The company has also strengthened its Board with the appointment of Alan Charlton as a Non-Executive Director. Looking ahead, Aeorema has strong forward visibility with contracts for 2026, focusing on margin enhancement and efficiency.

The most recent analyst rating on (GB:AEO) stock is a Buy with a £63.00 price target. To see the full list of analyst forecasts on Aeorema Communications stock, see the GB:AEO Stock Forecast page.

Aeorema Communications Grants Share Options to Key Staff

Aeorema Communications plc has announced the grant of options over 130,000 new ordinary shares as part of its long-term incentive plan to align employee interests with the company’s growth. This move, which includes options for Group Financial Controller Jamie Blackwell, underscores Aeorema’s confidence in its team and its strategic direction. The options are exercisable at 56 pence and will vest from October 2027. Overall, options over 1,935,000 shares are now outstanding, representing nearly 20% of the company’s current issued share capital, indicating a significant commitment to incentivizing key personnel and aligning them with the company’s future success.