Applied Aerospace & Defense Inc (AADX) Stock Analysis
Verdict: AVOID
Severe liquidity burn ($15.5M cash left vs -$46.4M FCF) and a 1,025% Q2 earnings miss overwhelm top-line growth and trigger dilution risk.
Investment score: 29/100
Analysis as of
Is Applied Aerospace & Defense Inc stock worth reviewing? AI model thesis
The AI model assigns an AVOID recommendation on Applied Aerospace & Defense (AADX) due to acute balance sheet distress ($15.48M cash vs -$46.37M annual FCF burn) and persistent earnings execution failures following its June 2026 IPO.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 25/100 (weight 15%)
- Technical Momentum: 15/100 (weight 15%)
- Earnings Quality: 10/100 (weight 15%)
- Insider Sentiment: 55/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 20/100 (weight 15%)
Applied Aerospace & Defense Inc opportunities and risks
What speaks for AADX
- Rapid top-line expansion in defense and space integration.
What speaks against AADX
- Imminent liquidity shortfall and capital dilution risk.
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| AADX | n/a | 3.4x | n/a | 23.1% | -40.1% | -5.7% |
| LUNR | n/a | 4.8x | n/a | 27.3% | -26.7% | -8.1% |
| ATRO | 35.6x | 3.0x | 27.7x | 32.5% | 8.4% | 2.2% |
| VVX | 25.8x | 0.5x | 10.3x | 8.5% | 1.9% | 5.5% |
| RDW | n/a | 5.7x | n/a | 20.1% | -57.3% | -4.2% |
| DCO | n/a | 2.9x | 475.5x | 27.2% | -2.9% | -1.0% |
| Peer median | n/a | 3.0x | 10.3x | 27.2% | -2.9% | -1.0% |
Frequently asked questions about Applied Aerospace & Defense Inc (AADX)
Is AADX stock a good investment?
The cached TradeMates AI model rates Applied Aerospace & Defense Inc as AVOID with an investment score of 29/100. The AI model assigns an AVOID recommendation on Applied Aerospace & Defense (AADX) due to acute balance sheet distress ($15.48M cash vs -$46.37M annual FCF burn) and persistent earnings execution failures following its June 2026 IPO. This is algorithmic model output, not personal investment advice.
Is AADX stock a buy?
The TradeMates model verdict for AADX is AVOID with an investment score of 29/100. Treat this as a model signal to review, not a personal buy recommendation.