AMREP CORP.

AMREP Corp. maintains a strong liquidity position, with cash and equivalents amounting to $49.998 million as of Q3 2026, representing 34.7% of total assets. The company's liquidity FPT (free cash flow to total assets) is 7.35%, which is above the median for the commercial banking industry. The price-to-book ratio of 1.04 and a debt-to-equity ratio of 0.0 indicate a conservative capital structure with minimal leverage. Profitability metrics show a return on equity (ROE) of 6.49% and a return on assets (ROA) of 6.28%, both of which are above the industry median of 5.5% and 4.8%, respectively. The company's net interest margin and fee-based income contribute to its strong profitability, with operating income of $10.272 million and net income of $9.039 million in Q3 2026. Geographically, AMREP's revenue is concentrated in the United States, with no material international exposure. The company's real estate inventory, a significant portion of its assets, is primarily located in domestic markets. Land inventory accounts for 81.6% of total real estate inventory, while homebuilding model and completed inventory make up 12.9%. The company's growth trajectory is positive, with a 26.3% year-over-year increase in revenue from $33.09 million in Q3 2025 to $41.82 million in Q3 2026. Free cash flow has also increased by 46.7% year-over-year, from $7.273 million to $10.578 million. This growth is driven by strong performance in real estate inventory and investment assets. Risk factors include the potential for dilution, although the risk assessment indicates that dilution risk could not be assessed due to missing basic and diluted share counts. The company's liquidity risk is low, supported by a high cash-to-asset ratio and strong operating cash flow. Credit risk is not explicitly quantified but is likely low given the conservative capital structure and minimal leverage. Recent filings show that AMREP has maintained a consistent capital structure, with no significant changes in shares outstanding or capital contributions. The company's cash flow from operations has been robust, with a 48.3% increase in the nine months ended January 31, 2026, compared to the same period in 2025. The company has also not capitalized any interest or loan costs in its real estate inventory, indicating a conservative approach to asset valuation.