Undervalued Aerospace Company with Hidden Gem Potential

Butler National is an aerospace company with significant exposure to the sector, but its casino and gaming business has performed poorly. The company's aerospace segment is overlooked, but it presents a cheap multiple investment opportunity.

Butler National Corporation (OTCQX: BUKS) has recently been in the spotlight for its significant exposure to the aerospace sector, despite a struggling casino and gaming business. The company's aerospace division, which represents a considerable portion of its operations, has been overshadowed by its gaming arm, leading to a perception of underperformance. However, a closer look at the aerospace segment reveals a potentially undervalued investment opportunity.

Butler National's aerospace business is a key player in the sector, with a significant portion of its sales coming from this segment. While the casino and gaming business has performed poorly, the aerospace division has remained relatively stable. The company's recent authorization of a buyback plan on August 13, 2025, suggests a strategic move to return value to shareholders and potentially boost the stock price [4].

The aerospace sector is poised for growth, with increasing demand for advanced materials, aircraft, and defense technologies. Butler National's exposure to this sector presents a unique opportunity for investors looking for a cheap multiple investment. The company's aerospace division operates with a lower price-to-sales (P/S) ratio compared to its competitors, indicating a potential discount to its intrinsic value.

However, investors should be cautious about the company's high debt-to-equity ratio (78.1%) and stock volatility (12.4% weekly swings), which pose significant risks. Despite these challenges, Butler National's strategic alignment with the global energy transition and its $4.9 billion backlog position it as a discounted long-term opportunity [3].

In conclusion, Butler National Corporation presents a compelling investment thesis for long-term investors willing to tolerate short-term volatility. The company's aerospace division, while overshadowed by its gaming business, offers a cheap multiple investment opportunity in a growing sector. Investors should closely monitor the company's operational progress and strategic initiatives to capitalize on this undervalued opportunity.

References:
[1] https://www.gurufocus.com/news/3057885/tencent-tcehy-reports-strong-q2-revenue-growth-driven-by-gaming-and-services
[2] https://seekingalpha.com/article/4813496-butler-national-stock-overlooked-aerospace-company-cheap-multiple
[3] https://www.ainvest.com/news/fluence-energy-q2-earnings-operational-progress-growth-headwinds-long-term-investment-opportunity-2508/
[4] https://www.marketscreener.com/news/butler-national-corporation-authorizes-a-buyback-plan-ce7c51d8d981f62c