AST SPACEMOBILE Ratings Highlight Weak Financials

A recent report rates AST SPACEMOBILE INC as a mid-cap growth stock with significant weaknesses in profit margins and cash flows, affecting its investment appeal.

Date: 03-12-2024

AI Rating: 4

The report on AST SPACEMOBILE INC reveals critical insights into its financial standing. Despite being rated 59% under the Small-Cap Growth Investor model, the company falls short in several vital areas:

Profit Margin: The company has failed this category, indicating challenges in maintaining profitability.
Sales and EPS Growth: The comparison with the previous year has also failed, which raises concerns regarding revenue growth and earnings performance.
Cash Flow from Operations: This has also received a failing grade, pointing to potential liquidity issues which could lead to difficulties in funding operations and growth.
Long Term Debt/Equity Ratio: A failing rating in this area suggests that the company may have high debt relative to its equity, which is a risk factor for investors.
Income Tax Percentage: Another failure that could indicate higher liabilities or ineffective tax strategies impacting net income.

On a positive note, ASTS does pass several criteria including:

Sales Performance
Relative Strength
Insider Holdings
Cash and Cash Equivalents
Average Shares Outstanding
Price

These strengths may offer some resilience, but the prominent weaknesses outlined are likely to overshadow them. Investors should closely monitor ASTS's ability to address its failing metrics to avoid potential stock price declines.

Stocks: ASTS