Applied Energetics (AERG) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Applied Energetics

OTC Markets OTCQB•Technology•Scientific & Technical Instruments

$0.71+0.00(0.01%)Market open

Market Cap

$163.00M

P/S

669.0x

P/B

74.6x

Applied Energetics, Inc. develops, manufactures, and sells advanced high-performance lasers and optical systems, and integrated guided energy systems worldwide. The company develops and holds various intellectual property rights, including laser guided energy and laser induced plasma channel technology for used in high-tech directed energy systems. It serves defense, national security, industrial, biomedical, and scientific customers. The company was founded in 1990 and is headquartered in Tucson, Arizona.

How this company scores

WeakMetricSide Score: 24/100

Strongest: Balance Sheet & Red Flags (15/25); weakest: Growth (2/25).

Profitability3/25

Growth2/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality4/25

Strengths

Interest easily coveredNet cash positionImproving margins

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 669.0x5y range 52.5x – 2665.5x

Currently above its 17-quarter median.

P/B · 74.6x5y range 35.7x – 786.7x

Currently below its 17-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 8 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $163.00M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $243,639
Q. Revenue: $62,000
TTM EBITDA: $-15.83M
TTM Op. Income: $-16.17M
Q. Op. Income: $-4.30M
TTM Net Income: $-16.07M
Q. Net Income: $-4.28M
EPS: $-0.02
Shares Out.: $229.90M

$243,639 in TTM revenue declined 86.4% YoY, reaching $62,000 last quarter. TTM EBITDA of $-15.83M and TTM operating income of $-16.17M show growth is flowing through to the bottom line. However, net income is negative at $16.07M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has fallen for 5 consecutive quarters — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 65.2%
EBITDA Margin: -6794.6%
Op. Margin: -6934.9%
Net Margin: -6901.2%

Op. margin of -6934.9% is down 1552.4% YoY — costs are rising relative to revenue. Net margin at -6901.2% and gross margin of 65.2% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 29% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 669.0x
P/B Ratio: 74.6x

P/S of 669.0x and P/B of 74.6x. P/S is high, meaning growth expectations are priced in.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $4.07M
Cash: $1.12M
Long-Term Debt: N/A
Book Value: $2.19M
D/E Ratio: N/A
Debt/EBITDA: N/A

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-2.83M
TTM Free Cash Flow: $-10.40M
FCF Margin: -4267.8%
FCF / Net Income: 0.6

TTM FCF of $-10.40M on $-2.83M in operating cash flow. The FCF / Net Income ratio of 0.6x means cash covers only part of net income — earnings quality needs attention. Over the past year, free cash flow is down 34% — an improving trend.