Risk factor
Poor trading liquidity
Profitability factor
Very strong margins and returns
About
Butler National Corporation is a diversified company operating internationally, specializing in a broad spectrum of aerospace activities. Its extensive involvement includes the design, engineering, manufacturing, distribution, installation, repair, and modification of various aerostructures, aircraft components, avionics, accessories, subassemblies, and complete systems. The company's operations are segmented into two key divisions: Aerospace Products and Professional Services. The Aerospace Products segment offers comprehensive aircraft modification services. These encompass transforming business-class aircraft from passenger to freighter configurations, integrating advanced radar systems, adding aerial photography capabilities, implementing intelligence surveillance reconnaissance (ISR) enhancements, and performing stability modifications for aircraft types such as Learjet, Beechcraft, Cessna, and Dassault Falcon, alongside other specialized alterations. Additionally, this segment is responsible for the production, sale, and servicing of electronic upgrades tailored for classic weapon control systems utilized in military aircraft and ground vehicles. It also handles the sales, installation, and maintenance of avionics equipment, including aircraft radio systems and flight controls, and provides troubleshooting and repair for autopilot systems. Under its Professional Services segment, Butler National Corporation oversees the management of the Boot Hill Casino and Resort, a prominent gaming and entertainment complex situated in Dodge City, Kansas, which includes associated dining and recreational facilities. This segment further extends its expertise to provide architectural services, focusing on commercial and industrial building design, along with comprehensive engineering services. Beyond these core segments, the corporation actively purchases, renovates, and resells aircraft, with a particular emphasis on Learjet models. Its wide-ranging clientele includes owners and operators across the entire aviation spectrum, from single-engine and commercial aircraft to regional, business, and military fleets. Established in 1960, Butler National Corporation maintains its headquarters in Olathe, Kansas.
Company Valuation
Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD.