Astronics Corporation Common Stock (ATRO)

FairStock Score: 40/100 — MIXED

Key Financials

Strengths

• Generates $32 million in annual free cash flow (1.2% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 14.8% above cost of capital
• Altman Z-Score of 4.3 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 15.1% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($8) with negative 776% margin of safety—limited downside protection
• High leverage at 2.70x debt-to-equity increases financial risk and interest expense burden

AI Analysis

Astronics Corporation Common Stock is a small-cap industrials company valued at $2.7 billion. The business generates $862 million in annual revenue with a 3.4% net margin and $32 million in free cash flow. From a quality standpoint, Astronics shows solid Piotroski F-Score of 7/9 and healthy Altman Z-Score of 4.3. On valuation, the stock is commanding a steep 89.9x multiple, with trades far above its Graham Number ($8) with no margin of safety. Growth dynamics show revenue growing at 15.1% and profit growth of 1145.7%. Our composite FairStock Score of 40/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Astronics's 15% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $32 million in annual free cash flow (1.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 90x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer