AIR T INC

Levered aviation/parts holding company posting a loss year, with thin interest coverage and a balance-sheet-distorted ROE.

Strengths

• Positive free cash flow of $22.4M (52.7th pct), fcf margin 59.7th pct
• Diversified holding structure with a stable FedEx dry-lease cargo business

Risks

• Net loss year (net margin -2.1%, ROA -3.5%) and interest coverage of just 0.23x (operating income below interest expense)
• Heavy indebtedness and negative book equity; the 191% ROE is a negative-equity artifact, not real profitability

Notable findings

• No interest coverageInterest coverage 0.23 (cannot cover interest)
• Exec changeRecent 8-K item 5.02 8-K ↗
• Negative equityNegative book equity (debt/equity -34.31)
• Net lossNet loss (net margin -2.1%)