📊 AXR Key Takeaways
Is Amrep Corp.. (AXR) a Good Investment?
AMREP demonstrates exceptional profitability metrics with 21.6% net margins and strong free cash flow generation ($10.6M FCF). However, the extraordinary 2963.7% revenue growth and extremely low 2.0% gross margin warrant scrutiny regarding sustainability and business model quality, suggesting this may represent a one-time transaction rather than normalized operating performance.
AMREP shows strong near-term earnings and cash flow improvement, backed by an exceptionally clean balance sheet with substantial cash and almost no debt. However, the quality and sustainability of that growth look mixed because revenue appears highly lumpy and the reported 2.0% gross margin is very weak relative to operating profitability, suggesting results may depend on non-recurring or unusually favorable items. Fundamentally, the company is financially safe, but the operating profile is not yet strong enough to justify a more aggressive rating.
Why Buy Amrep Corp.. Stock? AXR Key Strengths
- Outstanding operating leverage with 24.6% operating margin despite minimal gross margins
- Fortress balance sheet with minimal debt ($21K), strong liquidity ($50M cash), and 3.03x debt-to-equity of 0.00
- Robust free cash flow generation at 25.3% FCF margin relative to revenue, significantly exceeding net income
- Substantial revenue growth of 2963.7% YoY with corresponding 90.1% net income growth
- Very strong balance sheet with $50.00M of cash, minimal long-term debt, and only $4.57M of total liabilities
- Net income, EPS, operating income, and free cash flow all improved materially, indicating solid near-term execution
- Positive free cash flow and very high interest coverage show low financial stress and good internal funding capacity
AXR Stock Risks: Amrep Corp.. Investment Risks
- Abnormally low 2.0% gross margin indicates either a low-margin transaction, one-time event, or concerning operational inefficiency in core land development business
- Extreme revenue growth lacks credibility as normalized performance and appears non-recurring in nature
- Low absolute gross profit ($841K on $41.8M revenue) combined with substantial operating income suggests heavily reliance on non-operating items or accounting treatment requiring verification
- Modest ROE (6.5%) and ROA (6.3%) despite strong profitability metrics indicate significant unutilized asset base or capital inefficiency
- Nine insider Form 4 filings in last 90 days suggest potential volatility in insider positioning
- Revenue growth may be low quality or difficult to sustain given the extremely large YoY jump and likely lumpiness of land sales
- Gross margin of 2.0% is very weak and raises concern about core profitability consistency
- ROE and ROA remain only moderate despite the earnings jump, which may indicate limited capital efficiency
Key Metrics to Watch
- Gross margin normalization and sustainability in subsequent periods
- Revenue composition and identification of one-time versus recurring components
- Operating cash flow trends and working capital changes relative to reported profits
- Return on equity improvement as company deploys $50M cash position
- Gross margin and operating margin consistency
- Operating cash flow and revenue sustainability across future periods
Amrep Corp.. (AXR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
AXR Profit Margin, ROE & Profitability Analysis
AXR vs Real Estate Sector: How Amrep Corp.. Compares
How Amrep Corp.. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Amrep Corp.. Stock Overvalued? AXR Valuation Analysis 2026
Based on fundamental analysis, Amrep Corp.. has mixed fundamental signals relative to the Real Estate 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.
Amrep Corp.. Balance Sheet: AXR Debt, Cash & Liquidity
AXR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Amrep Corp..'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.25 reflects profitable operations.
AXR Revenue Growth, EPS Growth & YoY Performance
AXR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $7.5M | $717.0K | $0.13 |
| Q2 2026 | $9.4M | $1.2M | $0.22 |
| Q1 2026 | $17.9M | $4.1M | $0.76 |
| Q3 2025 | $7.5M | $92.0K | $0.02 |
| Q2 2025 | $8.9M | $1.1M | $0.21 |
| Q1 2025 | $10.3M | $1.3M | $0.25 |
| Q3 2024 | $9.1M | $92.0K | $0.02 |
| Q3 2023 | $9.1M | $910.0K | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Amrep Corp.. Dividends, Buybacks & Capital Allocation
AXR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Amrep Corp.. (CIK: 0000006207)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AXR
What is the AI rating for AXR?
Amrep Corp.. (AXR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 60% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AXR's key strengths?
Claude: Outstanding operating leverage with 24.6% operating margin despite minimal gross margins. Fortress balance sheet with minimal debt ($21K), strong liquidity ($50M cash), and 3.03x debt-to-equity of 0.00. ChatGPT: Very strong balance sheet with $50.00M of cash, minimal long-term debt, and only $4.57M of total liabilities. Net income, EPS, operating income, and free cash flow all improved materially, indicating solid near-term execution.
What are the risks of investing in AXR?
Claude: Abnormally low 2.0% gross margin indicates either a low-margin transaction, one-time event, or concerning operational inefficiency in core land development business. Extreme revenue growth lacks credibility as normalized performance and appears non-recurring in nature. ChatGPT: Revenue growth may be low quality or difficult to sustain given the extremely large YoY jump and likely lumpiness of land sales. Gross margin of 2.0% is very weak and raises concern about core profitability consistency.
What is AXR's revenue and growth?
Amrep Corp.. reported revenue of $41.8M.
Does AXR pay dividends?
Amrep Corp.. does not currently pay dividends.
Where can I find AXR SEC filings?
Official SEC filings for Amrep Corp.. (CIK: 0000006207) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AXR's EPS?
Amrep Corp.. has a diluted EPS of $1.68.
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 AXR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Amrep Corp.. has a HOLD rating with 60% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AXR stock overvalued or undervalued?
Valuation metrics for AXR: ROE of 6.5% (sector avg: 8%), net margin of 21.6% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy AXR stock in 2026?
Our dual AI analysis gives Amrep Corp.. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AXR's free cash flow?
Amrep Corp..'s operating cash flow is $10.7M, with capital expenditures of $99.0K. FCF margin is 25.3%.
How does AXR compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 21.6% (avg: 20%), ROE 6.5% (avg: 8%), current ratio N/A (avg: 1.5).