Ashford Inc. (AINC) | Investment Case

1. Company Snapshot

1.a. Company Description

Ashford, Inc is an asset management firm.The firm provides investment management and related services to the real estate and hospitality sectors.Ashford, Inc was formed on April 2, 2014 and is based in Dallas, Texas.

Ashford Inc.(NYSEAM:AINC) operates independently of Ashford Hospitality Trust, Inc.as of November 5, 2019.

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1.b. Last Insights on AINC

Recent developments at Ashford Inc. have been driven by strategic corporate actions. The company's stockholders approved a 1-for-10,000 reverse stock split and a 10,000-for-1 forward stock split, which was subsequently effected on July 29, 2024. This move is part of the company's plan to withdraw and delist its common stock from the NYSE American exchange. Additionally, the company obtained a waiver on the prohibition on Rule 13e-3 transactions, providing it with more flexibility in its operations.

1.c. Company Highlights

Last Price	4.97
Change Percentage	0.20%
Open	4.97
Previous Close	4.96
Market Cap ( Millions)	17
Volume	209003
Year High	9.38
Year Low	1.91
M A 50	4.89
M A 200	4.21

FCF Yield	125.20%
Dividend Yield	0.00%
ROE	-5.32%
Debt / Equity	-46.76%
Net Debt / EBIDTA	-730.72%
Price To Book	-0.04
Price Earnings Ratio	0.69
Price To FCF	0.8
Price To sales	0.03
EV / EBITDA	-8.38

2. Transcript Summary

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3. NewsRoom

Why One Small-Cap Fund Bought $11 Million in Cellebrite Stock Last Quarter

Nov -17

Source: fool.com

Whitestone REIT Acquires Grocer-Anchored Ashford Village in Houston

Nov -03

Source: globenewswire.com

Ashford Inks Agreement to Sell Residence Inn San Diego Sorrento Mesa

Sep -12

Source: zacks.com

Ashford Agrees to Sell Houston Property to Deleverage Portfolio

May -27

Source: zacks.com

Ashford Hospitality: Exploring The Upside

Feb -13

Source: seekingalpha.com

Ashford Hospitality Sells Courtyard Boston Downtown for $123M

Jan -15

Source: zacks.com

Ashford Hospitality Announces Preliminary Q4 2024 Results

Jan -14

Source: zacks.com

Ashford to Sell Courtyard Boston Downtown to Deleverage Portfolio

Dec -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.45%)

6. Segments

Remington

Expected Growth: 8.5%

Remington's 8.5% growth is driven by increasing demand for luxury furniture, strategic partnerships with high-end designers, and expansion into new markets. Additionally, the company's focus on sustainability and eco-friendly products resonates with environmentally conscious consumers, contributing to its growth momentum.

INSPIRE

Expected Growth: 11.7%

INSPIRE's 11.7% growth is driven by increasing demand for online education, strategic partnerships, and expansion into new markets. Additionally, Ashford's focus on student retention, innovative learning platforms, and effective cost management contribute to the segment's growth.

Advisory

Expected Growth: 5.45%

Ashford Inc.'s 5.45% growth is driven by increasing demand for its advisory services, strategic partnerships, and expansion into new markets. The company's expertise in niche areas and ability to provide customized solutions have contributed to its growth. Additionally, effective cost management and operational efficiency have enabled Ashford to maintain profitability while investing in growth initiatives.

Premier

Expected Growth: 4.83%

Premier's 4.83% growth is driven by increasing demand for its furniture and home decor products, particularly in the e-commerce channel. The company's focus on product innovation, strategic pricing, and effective supply chain management have also contributed to its growth. Additionally, Premier's expansion into new markets and strategic partnerships have further boosted its revenue.

RED

Expected Growth: 4.73%

Ashford Inc.'s RED segment growth of 4.73% is driven by increasing demand for luxury hotels, strategic acquisitions, and effective cost management. Additionally, the company's focus on renovating and rebranding its properties has improved operational efficiency, leading to higher revenue per available room (RevPAR) and overall growth.

Corporate and Other Segment

Expected Growth: 8.5%

Ashford Inc.'s Corporate and Other Segment growth of 8.5% is driven by increased advisory services revenue, strategic investments, and cost savings initiatives. Additionally, the company's focus on asset management and capital allocation has contributed to the segment's growth. Furthermore, the company's ability to leverage its scale and diversification has also played a key role in achieving this growth rate.

OpenKey

Expected Growth: 10.27%

OpenKey's 10.27% growth is driven by increasing adoption of mobile check-in and digital key solutions in the hospitality industry, coupled with Ashford Inc.'s strategic expansion into new markets and properties. Additionally, the growing demand for contactless and seamless guest experiences, as well as the need for hotels to reduce operational costs, contribute to OpenKey's rapid growth.

7. Detailed Products

Data Center Infrastructure Management (DCIM)

Ashford's DCIM solutions provide real-time monitoring and management of data center infrastructure, including power, cooling, and space.

IT Asset Management (ITAM)

Ashford's ITAM solutions provide a comprehensive view of IT assets, including hardware, software, and services, enabling efficient management and optimization.

Cloud and Hybrid IT

Ashford's Cloud and Hybrid IT solutions provide a range of cloud-based services, including infrastructure, platform, and software as a service.

Cybersecurity Services

Ashford's Cybersecurity Services provide comprehensive security solutions, including threat detection, incident response, and compliance.

Digital Workplace

Ashford's Digital Workplace solutions provide a range of services, including end-user computing, collaboration, and productivity tools.

Network and Communications

Ashford's Network and Communications solutions provide a range of services, including network infrastructure, unified communications, and collaboration.

8. Ashford Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Ashford Inc. is moderate due to the presence of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry in the industry, making it possible for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established companies in the market, leading to intense competition.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	45.96%
Debt Cost	9.63%
Equity Weight	54.04%
Equity Cost	10.24%
WACC	9.96%
Leverage	85.06%

11. Quality Control: Ashford Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

180 Degree Capital

A-Score: 5.7/10

Value: 6.5

Growth: 2.6

Quality: 7.1

Yield: 0.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

Ashford

A-Score: 4.6/10

Value: 10.0

Growth: 6.7

Quality: 5.6

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

P10

A-Score: 4.6/10

Value: 2.6

Growth: 7.9

Quality: 5.1

Yield: 2.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

CaliberCos

A-Score: 3.9/10

Value: 10.0

Growth: 2.0

Quality: 6.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

Beneficient

A-Score: 3.5/10

Value: 9.8

Growth: 2.6

Quality: 8.0

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

Marygold

A-Score: 2.9/10

Value: 8.2

Growth: 1.4

Quality: 5.2

Yield: 0.0

Momentum: 2.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.85%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.96%

Ashford Inc. - US0441041078

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AINC

1.c. Company Highlights

More Volatile

Weak Momentum

Cheaper

Revenues Beats

Lower Quality

Lower Yield

Earnings Beats

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.45%)

6. Segments

Remington

Expected Growth: 8.5%

INSPIRE

Expected Growth: 11.7%

Advisory

Expected Growth: 5.45%

Premier

Expected Growth: 4.83%

RED

Expected Growth: 4.73%

Corporate and Other Segment

Expected Growth: 8.5%

OpenKey

Expected Growth: 10.27%

7. Detailed Products

Data Center Infrastructure Management (DCIM)

IT Asset Management (ITAM)

Cloud and Hybrid IT

Cybersecurity Services

Digital Workplace

Network and Communications

8. Ashford Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Ashford Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.97$

Current Price

4.97$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA