Investment Thesis
AstroNova demonstrates solid operational cash generation (7.9M free cash flow) and maintains a reasonable balance sheet with 1.82x current ratio, but is currently unprofitable with negative net income of -1.2M and deteriorating earnings per share. The company's strong gross margin of 34.1% is offset by weak operating leverage, making near-term profitability recovery critical to justify holding the position.
ALOT Strengths
- Positive free cash flow of 7.9M with 7.0% FCF margin demonstrates underlying business generates cash
- Conservative leverage profile with 0.25x debt-to-equity ratio and manageable long-term debt of 19.0M
- Solid gross margin of 34.1% indicates pricing power and operational efficiency in core manufacturing
- Adequate liquidity with 1.82x current ratio provides cushion for short-term obligations
ALOT Risks
- Current unprofitability with -1.2M net income and -1.1% net margin; company burning shareholder value despite revenue
- Extremely weak interest coverage of 1.0x leaves minimal room for operational disruption or debt service stress
- Low cash position of 3.6M relative to 140.8M assets creates vulnerability; operating cash flow barely covers capex and debt
- Dramatic EPS deterioration of -406.3% YoY signals accelerating earnings pressure despite flat revenue performance
- Quick ratio of 0.71x below 1.0x indicates potential working capital constraints when excluding inventory
Key Metrics to Watch
- Operating margin expansion - critical to return to profitability; current 1.0% is unsustainable
- Free cash flow sustainability - monitor if 7.9M FCF can be maintained while servicing debt
- Gross margin trajectory - verify 34.1% holds as any compression compounds profitability challenges
- Cash balance growth - 3.6M is dangerously low; need to see accumulation from operations
- Revenue growth resumption - flat revenue paired with unprofitability is untenable long-term
ALOT Financial Metrics
ALOT Profitability Ratios
ALOT Balance Sheet & Liquidity
ALOT 5-Year Financial Trend
5-Year Trend Summary: AstroNova, Inc.'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.36 reflects profitable operations.
ALOT Growth Metrics (YoY)
ALOT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $39.2M | $240.0K | $0.03 |
| Q2 2026 | $36.1M | -$311.0K | $-0.04 |
| Q1 2026 | $33.0M | -$376.0K | $-0.05 |
| Q3 2025 | $37.5M | $240.0K | $0.03 |
| Q2 2025 | $35.5M | -$311.0K | $-0.04 |
| Q1 2025 | $33.0M | $848.0K | $0.11 |
| Q3 2024 | $37.5M | $289.0K | $0.04 |
| Q2 2024 | $32.3M | $425.0K | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ALOT Capital Allocation
ALOT SEC Filings
Access official SEC EDGAR filings for AstroNova, Inc. (CIK: 0000008146)