CPI AEROSTRUCTURES INC

CPI AEROSTRUCTURES has a market capitalization of $49.03 million and a price-to-book ratio of 1.92, indicating a premium valuation relative to its book value. The company's liquidity position is weak, with a current ratio of 1.98 and negative operating cash flow of -$424,703 in Q1 2026. Despite this, the company has no long-term debt, which reduces its leverage risk. Profitability metrics show a return on equity of 4.53% and a return on assets of 1.6%, both below the industry median for Aerospace & Defense firms. Gross margin of 25.8% is in line with the sector average, but operating margin of 10.55% is slightly below the median, suggesting operational inefficiencies or competitive pricing pressures. The company operates as a single business segment, with no geographic diversification disclosed in the Q1 2026 filing. Revenue is concentrated in the Aerospace & Defense sector, with no material exposure to other industries. Revenue growth in Q1 2026 was 12.7% year-over-year, driven by increased production volumes and contract wins. However, the outlook for FY 2026 remains cautious, with management noting potential delays in customer programs and supply chain constraints. The risk assessment highlights medium dilution risk, with recent filings indicating potential for equity offerings to fund operations or strategic initiatives. The company has a diluted share count of 13.04 million, slightly lower than the basic share count of 13.19 million, suggesting minimal dilution from stock options or warrants. Recent 10-Q filings disclose ongoing legal proceedings related to supplier contracts and a review of internal controls. Management also notes the impact of inflation on material costs and the potential for future regulatory changes affecting defense contracts.