Fundamental analysis: ADDvantage Technologies Group, Inc. (AEY)

Awarener score: 3.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very poor), the business stability (Lacking) and growth (Very good), and the company's inclination to return cash to the stockholders (Poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business has been growing at a very good pace. It's been more than average in relation to peer companies.
ADDvantage Technologies Group, Inc. business shows some variation, there's some risk. It looks bottom tier against rivals.

Margins score: 3.2

AEY profit margins -on goods and services sold- are usually very poor. They stand well ranked against rival companies.
Business profit on sales tends to be very poor. It's last-in-rank when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very poor. They remain a disappointment compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be very poor in relation to total revenues. They're still bottom tier against similar companies.
Profits -before income taxes- are usually meagre considering total sales, and remain last-in-rank when measured against rivals.
Total net profit tends to be very poor when confronted to sales. Company stands last-in-rank when measured against comparable firms.

Growth score: 2.0

ADDvantage Technologies Group, Inc. profit -on goods and services sold- has been growing at a very good pace. It's been impressive in relation to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 1.0

AEY had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 2.5

ADDvantage Technologies Group, Inc. usually gets meagre returns on the resources it controls. It proves last-in-rank when measured against peer firms.
The company normally gets very poor proceeds -on the resources directly invested in the business-. They remain a disappointment compared to similar companies.
Profitability -in relation to owned resources- is usually insufficient. It ranks last-in-rank when measured against competitors.
In the past, got meagre returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's last-in-rank when measured against comparable enterprises.

Usage of Funds score: 2.2

AEY on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands last-in-rank when measured against rival firms.
The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is weak when measured against industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a very weak position compared to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.9

ADDvantage Technologies Group, Inc. intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be more than average in relation to peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be in a weak position compared to similar firms.
Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains mediocre against rival firms.
Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks similar to rivals.
For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's in a weak position compared to peer firms.
For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is somewhat better than similar enterprises.
Usually, sales are on a month credit. It still ranks more than average in relation to peers.
Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as a slight improvement compared to competitors.
On average, it takes higher than three months from the purchase to charging customers. It happens to be better than most peers.
On average pays suppliers two months after the purchase. It ranks similar to industry peers.
The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's excellent in relation to similar companies.
Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
Business has usually been operated at a loss. Unless prospects improve, the company is no position to decrease loans taken levels but by additional shareholders' funding. Profitability must improve. It ranks last-in-rank when measured against comparable enterprises.
Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks in a weak position compared to similar firms.
Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 5.4

ADDvantage Technologies Group, Inc. looks heavily expensive in relation to profits and financial position. It happens to be substantially worse when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in good shape compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands well ranked against similar companies.
The company usually consumes much more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving significant business growth, genuine profitability may be brought into question. It's still last-in-rank when measured against industry firms.
In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up in a very weak position compared to peer ventures.
The company is indebted, it should focus on loan repayment. It looks mediocre against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks substantially worse when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks impressive in relation to rival firms.
The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains top-notch against peer firms.
In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be weak when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extremely low earnings power ability when measured against the current stock price and financial position. Profitability is significantly in dispute. It's still a disappointment compared to peer companies.

Total score: 3.5

Company at a glance: ADDvantage Technologies Group, Inc. (AEY)

Sector, industry: Technology, Electronics & Computer Distribution

Market Cap: 0.01 billions

Revenues TTM: 0.10 billions

ADDvantage Technologies Group, Inc., through its subsidiaries, distributes and services electronics and hardware for the telecommunications industry in the United States and internationally. It operates through two segments, Wireless Infrastructure Services and Telecommunications. The Wireless Infrastructure Services segment provides turn-key wireless infrastructure services for U.S. wireless carriers, communication tower companies, national integrators, and original equipment manufacturers. This segment also offers installation and upgradation of technology on cell sites; and construction of new small cells for 5G. The Telecommunications segment provides central office equipment that include optical transport, switching, and data center equipment for communication networks; customer premise equipment, such as integrated access devices, channel banks, Internet protocol private branch exchange phones, and routers; and decommissioning services for surplus and obsolete telecom equipment. The company was formerly known as ADDvantage Media Group, Inc. and changed its name to ADDvantage Technologies Group, Inc. in December 1999. ADDvantage Technologies Group, Inc. was incorporated in 1989 and is headquartered in Carrollton, Texas.