Star Navigation Systems (SNA) AI Stock Analysis

• Market Cap: C$6.36M
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 4.21
• Revenue Growth: 130.45%
• EPS Growth: 6.25%
• Country: CA
• Employees: N/A
• Sector: Industrials
• Sector Strength: 79
• Industry: Aerospace & Defense
• EPS (TTM): >-0.01
• Shares Outstanding: 1,272,460,300
• 10 Day Avg. Volume: 1,961,899
• 30 Day Avg. Volume: 1,437,591
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

Star Navigation Systems shows significant financial instability with persistent losses and negative equity, heavily impacting its stock score. Technical indicators are lacking, providing no clear market direction. Valuation metrics suggest unattractiveness due to a negative P/E ratio. While a recent corporate event slightly mitigates financial strain, substantial risks remain.

Star Navigation Systems Business Overview & Revenue Model

Company Description

Star Navigation Systems Group Ltd. develops, markets, and sells in-flight safety monitoring systems (ISMS) worldwide. The company provides STAR-ISMS, an aircraft computer that combines in-flight data monitoring, diagnostics, and data analysis with real time connections between the aircraft and the ground using real-time satellite transmission. It also offers STAR airborne data service that offers real-time monitoring, data analysis, aircraft health and flight operation status, and real-time position information. In addition, the company provides STAR-M.M.I. that repairs, performs qualification tests, and supports onboard LCD flat screen displays for cockpits of fixed wing aircraft and helicopters for civilian and military applications. The company was founded in 2000 and is headquartered in Brampton, Canada.

How the Company Makes Money

Star Navigation Systems makes money primarily through the sale and licensing of its proprietary software solutions and hardware products. The company's key revenue streams include subscription fees for real-time aircraft monitoring services, sales of onboard equipment, and data analytics services. Additionally, SNA may engage in significant partnerships with airlines, aircraft manufacturers, and military organizations to expand its market reach and drive further revenue through collaborative projects and long-term contracts.

Star Navigation Systems Financial Statement Overview

Summary

Star Navigation Systems is facing significant financial challenges, with persistent losses, negative equity, and cash flow deficiencies. The company's reliance on debt and inability to generate positive cash flow from operations pose substantial risks to its financial health and sustainability in the transportation industry.

Income Statement

Star Navigation Systems has experienced persistent negative profitability, as evidenced by the negative gross profit and net income over multiple periods. The company is exhibiting diminishing revenue growth, with a year-on-year revenue growth of approximately 121.5% from 2022 to 2023, but negligible growth from 2023 to 2024. The EBIT and EBITDA margins are severely negative, indicating ongoing operational inefficiencies.

Balance Sheet

The balance sheet reveals a precarious financial situation, with negative stockholders' equity indicating insolvency. The company's debt-to-equity ratio is undefined due to negative equity, pointing to heavy reliance on debt financing. Furthermore, the equity ratio is negative, showing a significant risk of over-leverage, which could impact financial stability.

Cash Flow

Cash flow analysis indicates continued negative operating and free cash flows, suggesting liquidity issues. While financing cash flow shows inflows, likely from debt, the company struggles to generate cash from operations. The free cash flow to net income ratio is negative, highlighting inefficiencies in converting income to cash.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
127.68K	58.04K	25.13K	108.95K	109.79K
	Gross Profit
-1.81M	-1.77M	-852.13K	55.77K	54.34K
	EBIT
-5.74M	-5.02M	-4.23M	-2.08M	-2.36M
	EBITDA
-5.44M	-5.21M	-4.10M	84.36K	-2.31M
	Net Income Common Stockholders
-5.82M	-4.99M	-4.44M	-2.82M	-2.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
152.94K	1.05M	-966.60K	276.92K	29.88K
	Total Assets
984.46K	2.50M	1.19M	1.51M	1.47M
	Total Debt
869.56K	1.26M	1.43M	2.58M	4.39M
	Net Debt
716.62K	211.79K	2.40M	2.30M	4.36M
	Total Liabilities
4.22M	3.04M	3.86M	4.94M	6.65M
	Stockholders Equity
-3.23M	-540.08K	-2.68M	-3.43M	-5.18M
Cash Flow		Free Cash Flow
-1.59M	-3.07M	-2.48M	-2.10M	-1.59M
	Operating Cash Flow
-1.59M	-2.95M	-2.47M	-2.08M	-1.59M
	Investing Cash Flow
0.00	-123.75K	-71.05K	-15.75K	0.00
	Financing Cash Flow
697.86K	4.12M	2.19M	2.34M	1.71M

Star Navigation Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDA	75 Outperform	C$2.81B	34.88	7.09%	―	33.74%	61.09%
CAE	67 Neutral	$11.43B	―	-5.31%	―	1.44%	-183.14%
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%
DRT	51 Neutral	$185.84M	11.52	59.45%	―	-2.68%	―
PTK	50 Neutral	$470.76M	―	-442.59%	―	-90.88%	-73.60%
SNA	24 Underperform	C$6.36M	―	174.16%	―	130.45%	6.25%

Star Navigation Systems Corporate Events

Star Navigation Announces Board Resignation of Ms. Pawandeep Athwal

Star Navigation Systems Group Ltd. announced the resignation of Ms. Pawandeep Athwal from its Board of Directors, effective February 16, 2025, due to personal reasons. Ms. Athwal has been instrumental in guiding the company through significant challenges, including the COVID pandemic and a bankruptcy process in early 2020. The company expressed gratitude for her contributions and wished her well in her future endeavors.

Star Navigation Completes Shares for Debt Transaction to Bolster Operations

Star Navigation Systems Group Ltd. has completed a shares for debt transaction, issuing 89,505,600 units at $0.005 per unit, reducing its debt by $447,528. The proceeds from this transaction will support the company’s working capital, aiding in the development of operations, sales, and marketing for the STAR-A.D.S.® system, potentially strengthening its market position and operational capabilities.