📊 AUSI Key Takeaways
Is Aura Systems Inc. (AUSI) a Good Investment?
Aura Systems exhibits severe financial distress with negative stockholders equity of -36.9M, liabilities exceeding assets by a significant margin, and deteriorating operational performance. The company generated -2.1M net loss on minimal 265K revenue with negative operating cash flow of -2.4M, indicating fundamental business viability concerns and imminent solvency risk.
AURA Systems shows an unsustainable fundamental profile: very small revenue, extreme operating and net losses, deeply negative free cash flow, and a near-absent liquidity cushion. While gross margin is high, it is overwhelmed by overhead and financing burden, and the balance sheet is severely impaired with negative equity and liabilities far exceeding assets.
Why Buy Aura Systems Inc. Stock? AUSI Key Strengths
- High gross margin of 90.6% suggests reasonable unit economics when products sell
- Minimal recent insider selling indicates management may retain confidence
- Low revenue base provides potential for meaningful absolute growth from current levels
- Very high gross margin indicates the core product/service can generate strong unit-level profitability
- Low capital expenditure suggests the business is not heavily dependent on ongoing fixed-asset investment
- The company still maintains recurring revenue rather than having no commercial activity
AUSI Stock Risks: Aura Systems Inc. Investment Risks
- Negative stockholders equity of -36.9M indicates technical insolvency and negative book value
- Extreme liquidity crisis with current ratio of 0.01x and only 107K cash against 38.2M liabilities
- Severe operational losses with -919.6% operating margin and -2.4M operating cash burn indicate non-viable business model
- Revenue declined 10.7% YoY despite high gross margins, suggesting demand destruction
- Long-term debt of 4.9M represents existential burden relative to equity position and cash generation
- Current ratio of 0.01x and cash of only $107K indicate acute liquidity stress
- Negative equity of $36.93M and liabilities of $38.24M versus $1.32M of assets reflect severe balance-sheet impairment
- Operating loss of $2.44M on just $265K of revenue and negative free cash flow of $2.41M show the business model is not currently viable at this scale
Key Metrics to Watch
- Operating cash flow trend - currently -2.4M with zero recovery visible
- Revenue stabilization - currently declining at -10.7% YoY
- Debt restructuring or covenant status - 4.9M long-term debt unsustainable given equity position
- Cash balance depletion rate - 107K cash will not sustain operations at current burn rate
- Cash balance and operating cash burn
- Revenue growth relative to operating expense reduction
Aura Systems Inc. (AUSI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AUSI Profit Margin, ROE & Profitability Analysis
AUSI vs Utilities Sector: How Aura Systems Inc. Compares
How Aura Systems Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aura Systems Inc. Stock Overvalued? AUSI Valuation Analysis 2026
Based on fundamental analysis, Aura Systems Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aura Systems Inc. Balance Sheet: AUSI Debt, Cash & Liquidity
AUSI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aura Systems Inc.'s revenue has declined by 93% over the 5-year period, indicating business contraction. The most recent EPS of $-0.04 indicates the company is currently unprofitable.
AUSI Revenue Growth, EPS Growth & YoY Performance
AUSI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $50.0K | -$540.0K | $0.00 |
| Q2 2026 | $3.0K | -$2.8M | $-0.04 |
| Q1 2026 | $47.0K | -$2.8M | $-0.02 |
| Q3 2025 | $47.0K | -$540.0K | $0.00 |
| Q2 2025 | $3.0K | -$1.1M | $-0.01 |
| Q1 2025 | $10.0K | -$1.1M | $-0.01 |
| Q3 2024 | $47.0K | -$552.0K | $-0.01 |
| Q3 2023 | $53.8K | -$552.2K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aura Systems Inc. Dividends, Buybacks & Capital Allocation
AUSI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aura Systems Inc. (CIK: 0000826253)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AUSI
What is the AI rating for AUSI?
Aura Systems Inc. (AUSI) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 95% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AUSI's key strengths?
Claude: High gross margin of 90.6% suggests reasonable unit economics when products sell. Minimal recent insider selling indicates management may retain confidence. ChatGPT: Very high gross margin indicates the core product/service can generate strong unit-level profitability. Low capital expenditure suggests the business is not heavily dependent on ongoing fixed-asset investment.
What are the risks of investing in AUSI?
Claude: Negative stockholders equity of -36.9M indicates technical insolvency and negative book value. Extreme liquidity crisis with current ratio of 0.01x and only 107K cash against 38.2M liabilities. ChatGPT: Current ratio of 0.01x and cash of only $107K indicate acute liquidity stress. Negative equity of $36.93M and liabilities of $38.24M versus $1.32M of assets reflect severe balance-sheet impairment.
What is AUSI's revenue and growth?
Aura Systems Inc. reported revenue of $265.0K.
Does AUSI pay dividends?
Aura Systems Inc. does not currently pay dividends.
Where can I find AUSI SEC filings?
Official SEC filings for Aura Systems Inc. (CIK: 0000826253) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AUSI's EPS?
Aura Systems Inc. has a diluted EPS of $-0.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AUSI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Aura Systems Inc. has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AUSI stock overvalued or undervalued?
Valuation metrics for AUSI: ROE of N/A (sector avg: 10%), net margin of -794.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy AUSI stock in 2026?
Our dual AI analysis gives Aura Systems Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AUSI's free cash flow?
Aura Systems Inc.'s operating cash flow is $-2.4M, with capital expenditures of $13.0K. FCF margin is -909.4%.
How does AUSI compare to other Utilities stocks?
Vs Utilities sector averages: Net margin -794.0% (avg: 12%), ROE N/A (avg: 10%), current ratio 0.01 (avg: 0.8).