Company Overview
AMREP Corporation operates within the real estate sector, specifically focusing on the real estate development industry in the United States. Through its subsidiary network, the entity provides land development services such as site planning and the acquisition of governmental and environmental approvals, alongside homebuilding operations. The company maintains a market capitalization of $148.44M and generated annual revenue of $53.00M in the trailing twelve months. With a workforce of 48 employees, AMREP Corporation functions as a mid-sized player in the development landscape. The market capitalization of $148.44M relative to its $53.00M in revenue indicates a valuation that reflects specific market expectations for its asset-light development model, while the small employee base of 48 suggests a highly specialized operational structure typical of niche development firms.
Financial Health
The financial performance metrics for AMREP Corporation show a trailing twelve-month revenue of $53.00M and net income of $12.93M, supported by an EBITDA of $14.11M. The significant gap between the $53.00M revenue and the $12.93M net income reveals a cost structure where operating expenses, including the cost of goods sold and administrative costs, consume approximately 75.6% of total revenue before reaching the bottom line. The company reported free cash flow of $8.78M, which indicates a strong capacity to generate liquidity from its core operations without relying on external financing. This positive cash flow provides the company with substantial financial flexibility to fund ongoing development projects or manage capital expenditures. The company's profitability is underscored by three key margins: a gross margin of 42.4%, an operating margin of 20.6%, and a profit margin of 24.4%. These margin levels indicate that the company retains more than 42 cents for every dollar of revenue after direct costs, maintains over 20 cents after operating expenses, and delivers over 24 cents as net profit, reflecting efficient cost management in the development sector. Regarding liquidity and leverage, AMREP Corporation holds $50.00M in cash against only $21,000 in debt, resulting in a debt-to-equity ratio of 0.01. This disparity between cash holdings and minimal debt demonstrates a highly conservative and low-leverage balance sheet that minimizes financial risk. Additionally, the current ratio stands at 25.94, a figure that signals exceptionally strong short-term liquidity and the ability to cover current liabilities more than 25 times over. Finally, the return on equity is 9.7% and the return on assets is 6.3%, metrics that reveal how effectively management utilizes shareholder capital and total assets to generate returns.
Valuation Assessment
The valuation metrics for AMREP Corporation include a trailing P/E ratio of 11.61, while the forward P/E is listed as N/A. The absence of a forward P/E figure implies that the market lacks data or consensus on future earnings growth projections to calculate a forward multiple, leaving the trailing P/E as the primary benchmark for current earnings valuation. The price-to-book ratio is 1.06, which indicates that the market values the company's equity at a slight premium over its book value, suggesting that the market perceives intangible assets or future growth potential beyond the recorded book value. Alternative valuation metrics such as the price-to-sales ratio of 2.80 and an EV/EBITDA of 6.91 provide additional context; the low EV/EBITDA suggests the company is trading at a relatively low multiple of its earnings before interest, taxes, depreciation, and amortization compared to industry averages. The stock's price range over the last year fluctuated between a 52-week high of $29.00 and a 52-week low of $17.60. Without a specific current share price provided in the facts, the valuation context is framed by these historical extremes, highlighting the volatility within the trading range. The stock exhibits a beta of 1.33, which indicates that the share price is more volatile than the broader market, moving 33% more than the market index in response to general market fluctuations.
Growth & Income
The growth profile for AMREP Corporation is characterized by a revenue growth year-over-year of 93.8% and an earnings growth year-over-year of 346.2%. The earnings growth rate significantly outpaces the revenue growth rate, implying that the company is benefiting from operational leverage, cost efficiencies, or margin expansion that allows profits to grow faster than sales. Regarding income distribution, the dividend yield is N/A and the payout ratio is 0.0%, indicating that the company does not currently distribute dividends to shareholders. Instead of paying out earnings, the company retains its profits, likely to reinvest into new land acquisitions, development projects, or to strengthen the balance sheet. The overall growth and income profile presents a scenario of rapid expansion and profitability with zero current dividend income, focusing entirely on capital appreciation and organic growth through reinvestment.