Company Overview
Jet.AI Inc. is a technology entity engaged in the development and operation of private aviation platforms, specifically focusing on the creation of CharterGPT, a booking platform designed to function as a prospecting and quoting tool for arranging private jet travel with both internal aircraft and third-party carriers. The company also provides Reroute AI software, indicating a specialized focus on artificial intelligence applications within the aviation logistics sector. This organization operates within the Technology sector and the Software - Application industry, positioning it as a provider of digital solutions rather than a traditional airline or ground transport provider. The company's current scale is defined by a market capitalization of $9.41M, an annual revenue of $9.18M, and an employee base of 7 individuals. These financial and operational metrics indicate that Jet.AI Inc. functions as a small-cap, micro-cap entity with a highly concentrated workforce, suggesting a business model that relies heavily on intellectual property and platform scalability rather than extensive human capital or physical asset deployment. The relatively low market cap combined with significant revenue suggests a valuation structure common in early-stage software firms where earnings potential is prioritized over current profit margins.
Financial Health
Jet.AI Inc. reported revenue of $9.18M for the trailing twelve months, alongside a net income of $4.59M, while recording an EBITDA of $-10,067,170. The substantial gap between the reported net income and the negative EBITDA reveals a cost structure where significant non-operating expenses, such as interest or other non-recurring charges, are offsetting operational losses, or where accounting treatments for depreciation and amortization are inflating net income relative to cash-generating operations. The company reported free cash flow of $-4,571,244, which indicates a lack of financial flexibility and a requirement for external capital to fund ongoing operations and technology development. An analysis of the three primary margins shows a gross margin of -3.3%, an operating margin of -134.9%, and a profit margin of 50.0%; the negative gross and operating margins suggest that the cost of goods sold and operating expenses currently exceed gross revenue, while the positive profit margin is driven by the aforementioned non-operating income components. On the balance sheet, the company holds $1.82M in cash against $495,782 in debt, resulting in a debt-to-equity ratio of 2.26, which implies a leveraged balance sheet where equity claims are outweighed by debt obligations despite the low absolute debt figure. The current ratio stands at 0.58, indicating that the company possesses less current assets than current liabilities, which signals potential challenges regarding short-term liquidity and the ability to meet obligations due within one year. Return on Equity is calculated at 32.2%, while Return on Assets is -34.5%, revealing a divergence where the company is generating returns on shareholder equity through non-operating income but is failing to generate returns on the total asset base used to operate the business.
Valuation Assessment
The valuation metrics for Jet.AI Inc. include a trailing P/E ratio of 0.24 and a forward P/E of -7.89, where the negative forward P/E implies that the market expects earnings to remain negative or that current earnings are not sustainable at a positive multiple in the near term. The price-to-book ratio is 0.02, which indicates that the stock is trading at a negligible premium over its book value, suggesting the market values the company's equity at a fraction of its accounting net assets. Alternative valuation metrics such as the price-to-sales ratio of 1.02 and an EV/EBITDA of -0.80 provide further context, suggesting that investors are pricing the company based on revenue generation rather than profitability or earnings multiples due to the negative earnings profile. The 52-week high is $5.69 and the 52-week low is $0.07, meaning the current price sits significantly below the 52-week high, reflecting a substantial decline in trading interest or price over the past year. The beta value is -0.16, which is highly unusual for equities and indicates that the stock's price volatility moves inversely to the broader market or exhibits a correlation that does not align with standard risk models, presenting a distinct risk profile for portfolio diversification.
Growth & Income
Jet.AI Inc. reported a revenue growth rate of -44.3% year-over-year, while earnings growth is listed as N/A, indicating that the company is currently contracting in terms of top-line sales and has not achieved consistent positive earnings growth to measure against revenue. The negative revenue growth suggests that the platform adoption or market penetration is facing headwinds that are outpacing the rate of new business acquisition. As the company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, it retains all earnings, though in this case, the retention is offset by cash burn to fund operations. The overall growth and income profile for Jet.AI Inc. is characterized by revenue contraction, negative free cash flow, and a lack of dividend income, positioning the company as a high-risk growth vehicle that relies entirely on future profitability to satisfy investor expectations.