Astronics (ATRO), mcap=$315m, price $10.15 vs $11.50

Pitch: Small aero defense supplier with near-monopoly position in in-seat power distribution. The business is now extremely depressed due to exposure to new aircraft deliveries and discretionary retrofits. Overexposure to Boeing. ATRO is expected to ramp back to 2018 levels of revenue/margins by mid-decade driven by the commercial aero recovery.

Valuation: ATRO trades at sub 5x normal EBIT – i.e. 2018 adjusted EBITDA of $100m. Normalization is probably 3 – 5 years away.

Exp. gain: Not specified.

Full ATRO write-up (free guest account required):

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