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1. Company Snapshot

1.a. Company Description

AstroNova, Inc.designs, develops, manufactures, and distributes specialty printers, and data acquisition and analysis systems in the United States, Europe, Asia, Canada, Central and South America, and internationally.The company operates in two segments, Product Identification (PI) and Test & Measurement (T&M).


The PI segment offers tabletop and production-ready digital color label printers, and OEM printing systems under the QuickLabel brand; digital color label mini-presses and inline printing systems under the TrojanLabel brand; and label materials, tags, inks, toners, and thermal transfer ribbons under the GetLabels brand.This segment also develops and licenses various specialized software programs to design and manage labels and print images; and provides training and support.This segment serves chemicals, cosmetics, food and beverage, medical products, pharmaceuticals, and other industries; and brand owners, label converters, commercial printers, and packaging manufacturers.


The T&M segment offers airborne printing solutions, such as ToughWriter used to print hard copies of navigation maps, arrival and departure procedures, flight itineraries, weather maps, performance data, passenger data, and various air traffic control data; ToughSwitch, an ethernet switches used to connect multiple computers or Ethernet devices; TMX data acquisition systems; Daxus DXS-100 distributed data acquisition platform; SmartCorder DDX100 portable data acquisition systems for facility maintenance and field testing; and Everest EV-500, a digital strip chart recording system used primarily in telemetry applications.This segment serves aerospace and defense, automotive, commercial airline, energy, manufacturing, and transportation industries.The company was formerly known as Astro-Med, Inc.


and changed its name to AstroNova, Inc.in May 2016.AstroNova, Inc.


was incorporated in 1969 and is headquartered in West Warwick, Rhode Island.

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1.b. Last Insights on ALOT

AstroNova's recent performance was negatively driven by margin pressures, integration challenges, and delayed launches, particularly in its Product Identification (PI) segment. The company's Q3 earnings highlighted a 7.7% revenue growth, but this was offset by declining profitability. The integration of MTEX, a recent acquisition, continues to face challenges, and customer delays have further impacted results. Although the Technical and Medical (T&M) segment performed well, the PI segment's struggles will likely persist in the near term.

1.c. Company Highlights

2. AstroNova Delivers Robust Q1 FY2026 Results, Driven by Strategic Growth Initiatives

AstroNova reported strong financial performance in the first quarter of fiscal year 2026, with total revenue climbing 14.4% year over year to $37.7 million. This growth was fueled by double-digit increases in both the aerospace and product identification segments. Adjusted operating income rose 13.5%, reflecting the company's successful transition to high-margin ToughWriter printers and the launch of next-generation product identification solutions. Notably, the company delivered an earnings per share (EPS) of $0.18, surpassing analyst estimates of $0.12, signaling strong operational execution.

Publication Date: Jun -05

📋 Highlights
  • Revenue Growth: Total revenue reached $37.7 million, a 14.4% year-over-year increase.
  • Segment Performance: Aerospace and product identification segments both achieved double-digit revenue growth.
  • Defense Contract: Secured a $10 million multiyear defense contract, contributing $1.7 million in expected FY 2026 revenue.
  • Product Launches: Launched three new product identification solutions, expanding into sustainable packaging and higher-volume markets.
  • Financial Improvements: Adjusted EBITDA grew 27.6% to $3.1 million, with an 80-basis-point margin expansion.

Segment Performance and Strategic Wins

The aerospace segment saw a significant boost, with operating income reaching $2.8 million, or 24.2% of sales, driven by increased demand for ToughWriter products. A $10 million multiyear defense contract for these products stands out, contributing $1.7 million in expected fiscal year revenue. In the product identification segment, the company launched three new solutions targeting sustainable packaging and higher-volume markets, expanding its market reach. These initiatives helped drive a 5.4% increase in orders to $34.9 million, with a backlog of $25.5 million, underscoring strong demand.

Financial Health and Cost Discipline

AstroNova's financial health improved significantly, with adjusted EBITDA growing 27.6% to $3.1 million, and a margin expansion of 80 basis points. The company also strengthened its balance sheet by reducing debt by $3.9 million, ending the quarter with $12.6 million in liquidity. Management remains committed to its cost reduction plan, which is on track to deliver $3 million in annualized savings by the second quarter. This disciplined approach to cost management is expected to support margin expansion and profitability in the coming quarters.

Valuation and Outlook

With a price-to-sales (P/S) ratio of 0.47, AstroNova's valuation appears attractive relative to its peers, suggesting potential upside. However, the negative enterprise value-to-EBITDA (EV/EBITDA) ratio of -27.75 reflects ongoing challenges in profitability. The company's free cash flow yield of 5.17% highlights its ability to generate cash, a positive sign for investors. Looking ahead, AstroNova reaffirmed its fiscal year 2026 revenue guidance of $160–$165 million and an adjusted EBITDA margin of 8.5%–9.5%, demonstrating confidence in its strategic initiatives. As one analyst noted, "AstroNova's focus on high-margin products and cost efficiency positions it well for long-term growth." Despite the positive momentum, the stock's valuation may remain under pressure until the company demonstrates sustained profitability.

3. NewsRoom

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AstroNova to Report Third Quarter Fiscal Year 2026 Financial Results on Wednesday, December 10

Dec -01

Source: businesswire.com

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AstroNova Announces Amendment and Extension of Credit Agreement

Nov -06

Source: businesswire.com

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AstroNova, Inc. (ALOT) Q2 2026 Earnings Call Transcript

Sep -09

Source: seekingalpha.com

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AstroNova Reports Second-Quarter Fiscal 2026 Financial Results

Sep -09

Source: businesswire.com

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AstroNova to Report Second Quarter Fiscal Year 2026 Financial Results on Tuesday, September 9

Sep -05

Source: businesswire.com

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AstroNova Appoints Shawn Kravetz to Board of Directors

Aug -21

Source: businesswire.com

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AstroNova Appoints Jorik E. Ittmann as President and Chief Executive Officer

Aug -04

Source: businesswire.com

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AstroNova Announces Executive Leadership Change

Jun -30

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.78%)

6. Segments

Product Identification

Expected Growth: 12%

AstroNova's 12% growth in Product Identification is driven by increasing demand for labels and tags in the e-commerce and healthcare industries, as well as the company's expanding presence in emerging markets. Additionally, the company's focus on innovation, including the development of new products and technologies, has contributed to its growth.

Test & Measurement

Expected Growth: 18%

AstroNova's Test & Measurement segment growth is driven by increasing demand for product verification and validation in the aerospace, defense, and industrial markets. The company's expertise in data acquisition and visualization, as well as its ability to provide customized solutions, are key factors contributing to its 18% growth.

7. Detailed Products

Product Identification and Tracking

AstroNova's product identification and tracking solutions provide a range of products and services to help businesses track and identify their products throughout the supply chain.

Digital Printing and Finishing

AstroNova's digital printing and finishing solutions offer a range of products and services for printing and finishing labels, tags, and other materials.

Test and Measurement

AstroNova's test and measurement solutions provide a range of products and services for testing and measuring various parameters such as temperature, pressure, and vibration.

Data Acquisition and Recording

AstroNova's data acquisition and recording solutions provide a range of products and services for acquiring and recording data from various sources.

8. AstroNova, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

AstroNova, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

AstroNova, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

AstroNova, Inc. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's long-term relationships with suppliers and its ability to negotiate prices mitigate this risk.

Threat Of New Entrants

The barriers to entry in AstroNova, Inc.'s industry are relatively high, including significant capital requirements and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

AstroNova, Inc. operates in a highly competitive industry with several established players, leading to intense rivalry. The company must continually innovate and improve its products to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.24%
Debt Cost 6.92%
Equity Weight 77.76%
Equity Cost 6.92%
WACC 6.92%
Leverage 28.60%

11. Quality Control: AstroNova, Inc. passed 5 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

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.2$

Current Price

7.2$

Potential

-0.00%

Expected Cash-Flows