Breaking Down Alset EHome International Inc. (AEI) Financial Health: Key Insights for Investors

You're looking at Alset EHome International Inc. (AEI) and seeing a micro-cap stock with a lot of noise, so let's get straight to the numbers. The recent Q3 2025 earnings, reported in November, showed a profitable quarter with net income attributable to common stockholders of $1,512,431 on revenue of just under $1.00 million (specifically, $998,828), which looks good on the surface, but this was largely driven by non-operating income, not core business growth. The real story is the year-to-date net loss of over $15.04 million for the nine months ended September 30, 2025, which underscores the challenge of their diversified strategy. Still, the balance sheet got a major boost, with total assets rising to $169.11 million and a strong current ratio of 10.81 as of September 30, 2025, largely due to the non-cash $83.0 million acquisition of NEAPI. The stock, trading around $2.42 with a market capitalization of about $95 million, carries a consensus analyst rating of Sell. This is defintely a high-risk, high-reward situation.

Revenue Analysis

You need a clear picture of where Alset EHome International Inc. (AEI) actually makes its money, not just the top-line number. The direct takeaway is that Alset EHome International Inc. (AEI)'s revenue remains highly concentrated in real estate, but the trailing 12-month (TTM) growth rate ending mid-2025 shows a sharp rebound, albeit from a volatile base.

For the trailing twelve months ending June 30, 2025, Alset EHome International Inc. (AEI)'s revenue totaled $16.07 million. This figure reflects a dramatic year-over-year growth rate of 74.28% for that period. That's a huge jump, but when you look at the historical trend, you see a pattern of significant volatility, not steady, predictable growth. This company is defintely a roller coaster.

Primary Revenue Sources and Segment Contribution

The company's revenue streams are officially diversified across real estate, financial services, digital transformation technologies, biohealth, and consumer products. However, the reality is that one segment carries almost all the weight. Based on the last reported fiscal year (FY 2024), the Real Estate segment is the engine, generating $19,608,184 in revenue. Here's the quick math on where the money comes from:

• Real Estate Development (EHome communities, other projects): Contributes approximately 93% of total revenue.
• Rental Income and Other Activities: Account for the remaining small percentage.
• Digital Transformation and Biohealth: Did not generate significant revenue in FY 2024.

The core business is selling properties, specifically EHome communities near Houston, Texas, and Frederick, Maryland. Everything else is essentially a rounding error right now. You can get a deeper look at who is betting on this structure in Exploring Alset EHome International Inc. (AEI) Investor Profile: Who's Buying and Why?

Historical Revenue Volatility and Key Changes

The year-over-year revenue growth is a story of massive swings. While the TTM ending June 30, 2025, shows a strong +74.28% growth, the full-year 2024 revenue was $21.12 million, which was a -4.40% decrease from the prior year. What drove that 2024 decline? Reduced property sales. The Real Estate segment is inherently lumpy; a few delayed closings can sink the annual number, and a successful project completion can make it look like a rocket ship.

To be fair, the company's revenue history is consistently inconsistent. Look at the recent annual figures:

This kind of volatility means you can't rely on a simple extrapolation of the current 74.28% TTM growth. The key change is the continued dependence on the Real Estate segment, which makes the top-line number highly sensitive to the timing of property sales and the housing market in general.

Profitability Metrics

You're looking at Alset EHome International Inc. (AEI) because you want to know if their innovative e-home model actually translates to a sustainable business, and the short answer is: not yet. The company's profitability metrics for the 2025 fiscal year show a significant disconnect between its core product margin and its overall corporate cost structure. This means the homes themselves are profitable, but the business as a whole is not.

The latest Trailing Twelve Month (TTM) data ending June 30, 2025, reveals a stark picture. Alset EHome International Inc. (AEI) generated approximately $16.07 million in revenue, but ended up with a net loss of around $-12.51 million. That's a huge loss. Here's the quick math on the margins:

• Gross Profit Margin: 44.52% (TTM)
• Operating Margin: Not explicitly stated for TTM, but the Q2 2025 figure was a shocking -250.73%.
• Net Profit Margin: -77.86% (TTM)

Gross Profit vs. Operating Loss: The Core Disconnect

The Gross Profit Margin is the first thing I look at, and for Alset EHome International Inc. (AEI), it tells a story of solid product pricing. A TTM Gross Profit Margin of 44.52% is excellent, especially when compared to the average U.S. homebuilder, whose gross margins typically hover around 20.7%, according to 2025 industry studies. This suggests the 'EHome' concept-which focuses on sustainability and technology-allows for premium pricing or highly efficient construction costs relative to peers like Lennar (Q2 2025 Gross Margin of 17.8%) or D.R. Horton (Q2 2025 Gross Margin of 21.8%).

But the high gross margin is completely annihilated by operating expenses. The jump from a 44.52% Gross Margin to a massive -77.86% Net Margin is a red flag. This gap is where your operational efficiency (or lack thereof) lives. For the 2024 fiscal year, the company had a Gross Profit of roughly $8.3 million, but its Operating Expenses were approximately $25.23 million, resulting in a significant operating loss of around $-16.9 million. That's a cost structure that is simply too heavy for the revenue base.

Profitability Trend and Industry Comparison

The trend in profitability is one of deep, persistent losses, despite a recent reduction in the net loss figure. In 2024, the company reported a Net Loss of $4,165,816, a substantial improvement from the 2023 Net Loss of over $61 million, which was heavily impacted by a consolidation loss. Still, a loss is a loss. The current TTM Net Margin of -77.86% is miles away from the industry average Net Profit Margin for homebuilders, which was around 8.7% in 2023. Honestly, it shows a company that is still in heavy investment or restructuring mode, not a mature, profitable business.

To be fair, the company operates in multiple segments-Real Estate, Digital Transformation Technology, Biohealth, and Other Business Activities-but the Real Estate segment accounted for 93% of total revenue in 2024. The non-real estate segments are not pulling their weight, and the overall corporate overhead (General and Administrative expenses) is disproportionately high. Investors need to see a clear, defintely actionable plan to scale revenue rapidly or drastically cut the $25.23 million in operating expenses. You can read more about their stated goals here: Mission Statement, Vision, & Core Values of Alset EHome International Inc. (AEI).

The next step is simple: Demand clarity on the operational burn rate. Investor Relations: Provide a 12-month forecast for SG&A (Selling, General, and Administrative) expenses versus projected Gross Profit by the end of the quarter.

Debt vs. Equity Structure

Alset EHome International Inc. (AEI) operates with an extremely conservative capital structure, prioritizing equity over debt, which is a major outlier for a real estate-focused company. The company's Debt-to-Equity (D/E) ratio, a key measure of financial leverage (how much of the company is financed by debt versus shareholder equity), stood at just 0.03 for the last twelve months (LTM) of 2025.

That 0.03 D/E ratio is a defintely low number, especially when you compare it to the broader Real Estate Development sector, where the average D/E ratio typically hovers around 1.0, or 100%. This tells you that Alset EHome International Inc. (AEI) is not relying on significant borrowing to finance its land acquisition and development projects. It's a low-leverage model, which cuts down on interest rate risk but can limit the speed of growth.

When you look closer at the debt composition, the majority of the leverage is short-term. The Long-Term Debt to Equity ratio for the most recent quarter (MRQ) was only 0.82%, meaning less than one percent of the company's equity is covered by long-term debt obligations. This is a very clean balance sheet, but it raises the question of how Alset EHome International Inc. (AEI) is funding its growth if not through traditional debt.

The answer lies in equity funding. The company has balanced its capital needs by issuing new shares, leading to a year-over-year increase in outstanding shares of +10.31%. This strategy avoids interest payments and credit rating scrutiny but results in shareholder dilution. You need to weigh the benefit of a debt-free balance sheet against the cost of your ownership stake shrinking over time. For more on this, consider Exploring Alset EHome International Inc. (AEI) Investor Profile: Who's Buying and Why?

Here's the quick math on their capital structure compared to the sector:

What this estimate hides is the potential for a sudden shift. A low Debt-to-Equity ratio means the company has significant borrowing capacity, which could be deployed quickly for a large acquisition or development project. Still, for now, the strategy clearly favors minimal financial risk.

• Monitor future share issuances for further dilution.
• Watch for a strategic debt issuance to fund a major project.

Liquidity and Solvency

You need to know if Alset EHome International Inc. (AEI) can cover its short-term bills, and the answer is a resounding yes-the company's liquidity position is exceptionally strong, though this strength masks an underlying operating loss. Their high cash reserves provide a significant cushion, but the core business isn't generating the net income to match that liquidity, which is a key distinction for investors to grasp.

The most recent data, largely reflecting the trailing twelve months (TTM) and Q3 2025, shows a phenomenal liquidity position. The Current Ratio sits at an impressive 10.81, and the Quick Ratio is nearly as high at 10.32.

• Current Ratio: 10.81 (Current Assets / Current Liabilities).
• Quick Ratio: 10.32 (Excludes less-liquid assets like inventory).

Analysis of Working Capital Trends

The extremely high current and quick ratios point to a massive positive working capital (Current Assets minus Current Liabilities). This trend indicates the company has a large surplus of short-term assets, which is a significant strength in managing day-to-day operations and unexpected costs. As of the end of Q3 2025, the company reported total cash and restricted cash of over $25.56 million, with $25.45 million in unrestricted cash. This enormous cash balance is the primary driver of the high working capital and liquidity ratios.

Here's the quick math on what that cash means: they have a huge war chest. What this estimate hides, however, is whether this cash is a result of profitable operations or recent financing activities, which we need to check in the cash flow statement. Still, a 10.81 Current Ratio gives management a ton of flexibility.

Cash Flow Statements Overview (TTM and Q3 2025)

The cash flow statement reveals a mixed picture that tempers the excitement over the high liquidity ratios. For the trailing twelve months (TTM) ending around Q3 2025, Alset EHome International Inc. generated positive cash from operations, totaling approximately $4.68 million. However, the quarterly results show some volatility; for the three months ended March 31, 2025, net cash used in operating activities was ($251,965). The Q3 2025 report itself noted a loss from core operations of $2.57 million, though this was offset by a significant $4.54 million in non-operating income (like interest income and market gains), which led to a small net income for the quarter.

The cash flow breakdown for the most recent periods shows where the capital is moving:

The financing cash flow of $1.949 million in Q3 2025, plus the non-cash stock-for-stock acquisition of $83 million, shows a meaningful shift in the capital structure, largely through share issuances. This is a critical point: the balance sheet strength is heavily reliant on non-operating and financing activities, not solely from selling homes and services.

Liquidity Concerns or Strengths

The primary strength for Alset EHome International Inc. is its sheer liquidity buffer. The company's management has explicitly stated that prior substantial doubt about its ability to continue as a going concern has been alleviated, citing this strong liquidity position and planned cash inflows. This is a huge positive for short-term risk.

The main concern, however, is the quality of earnings and the sustainability of the cash flow. The Q3 2025 net income of $1.51 million was only possible because of $4.54 million in non-operating income, which is less predictable than recurring revenue. For a deeper dive into who is backing this strategy, you should check out Exploring Alset EHome International Inc. (AEI) Investor Profile: Who's Buying and Why?

Action Item: Monitor the next two quarterly reports closely for an increase in positive cash flow from operating activities, not just from investment gains or financing.

Valuation Analysis

You want to know if Alset EHome International Inc. (AEI) is overvalued or undervalued, and the short answer is that traditional metrics suggest it's a tough call, leaning toward a consensus of Sell as of November 2025, but with a recent history of massive stock price appreciation. When a company is unprofitable, you have to look beyond the simple P/E ratio, and with AEI, we are defintely in that territory.

Here's the quick math on the key valuation multiples for the 2025 fiscal year, which paint a picture of a company with strong book value relative to its price, but negative earnings:

The Price-to-Book (P/B) ratio of just 0.42 is the immediate head-turner. This suggests that the market values the company's equity at less than half of its net tangible assets, which often signals a deeply undervalued stock from an asset standpoint. But, still, the negative Price-to-Earnings (P/E) ratio of -2.30 and negative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of -$4.72 million tell you the company is losing money on its operations, which is why the Enterprise Value-to-EBITDA (EV/EBITDA) is also negative. That's a huge risk.

Near-Term Stock Performance and Analyst View

The stock price trends show a high-volatility, high-reward situation over the last year, but momentum is fading near the end of 2025. The stock has traded in a 52-week range of $0.70 to $4.55, which is a massive swing. As of November 2025, the stock price sits around $2.42. The good news is the stock has increased by 85.82% over the last 12 months, which is a great return. The bad news is that it has recently pulled back, showing a loss of -2.60% in the last month.

What this estimate hides is the high beta of 2.11, meaning this stock is more than twice as sensitive to overall market movements as the S&P 500. You're taking on significant volatility here.

• Stock closed near $2.42 in mid-November 2025.
• The 12-month return was a strong 85.82%.
• 52-week trading range is $0.70 to $4.55.

Dividend Policy and Consensus

If you are looking for income, Alset EHome International Inc. is not the place to be. The company does not currently pay a common stock dividend. This means both the dividend yield and the payout ratio are 0.0%. For a growth-oriented company that is currently unprofitable, retaining cash is the right move, but it offers no safety net for income investors.

The analyst consensus is clear: the stock currently holds a consensus rating of Sell. One valuation model suggests the stock is currently Overvalued by 5% compared to its intrinsic value of $2.45. This suggests the recent price action has pushed it slightly past its fundamental worth, even in the base-case scenario.

For a deeper dive into the company's solvency and profitability, check out Breaking Down Alset EHome International Inc. (AEI) Financial Health: Key Insights for Investors.

Next step: Review the company's cash flow statement to see if they can fund operations without further dilution.

Risk Factors

You're looking at Alset EHome International Inc. (AEI) and trying to map out the next 12 to 18 months, but honestly, the financial statements for 2025 show some clear, immediate risks you need to price in. The company is in a tough spot, balancing ambitious real estate development with a negative earnings profile.

The biggest risk is simply profitability. Despite reporting a recent quarterly EPS of $0.05, the overall picture is still one of deep unprofitability. For instance, the company's net margin is a massive negative 77.86%, and the return on equity sits at negative 14.31%, based on recent 2025 data. That negative EBIT margin (Earnings Before Interest and Taxes) tells you they're struggling to make money even before accounting for financing costs and taxes. That's a serious operational hurdle.

Financial and Market Volatility Risks

The financial risks for Alset EHome International Inc. are twofold: capital structure and market perception. You need to be defintely aware of the significant dilution risk. Shareholders have been 'substantially diluted' over the past year, which is a common way for smaller, unprofitable companies to raise capital, but it hurts your stake.

Plus, the stock itself is highly volatile. Its weekly volatility has jumped from 21% to 30% over the past year, making it a high-risk trade. This volatility is compounded by a consensus 'Sell' rating from analysts. The stock is currently trading around $2.42 (as of November 2025), which is a long way from its 52-week high of $4.55.

• Negative Net Margin: 77.86% loss.
• High Volatility: Weekly volatility at 30%.
• Insider Selling: CEO sold 500,000 shares in Q3 2025.

Operational and Strategic Challenges

Operationally, the company is primarily a real estate developer, but it's trying to diversify into digital transformation technology and biohealth. This multi-segment strategy is a strategic risk in itself; it spreads management focus thin. The core real estate segment faces stiff industry competition, and analysts are more favorable toward peers like Landsea Homes Corporation. To be fair, the company's gross margin is a healthy 44.5%, suggesting good control over production costs relative to sales, but that doesn't matter if operating expenses eat it all up.

Another red flag is the insider activity. Significant insider selling has been observed over the last three months. For example, the CEO sold 500,000 shares in September 2025 for about $1.34 million. Insider selling doesn't always mean the ship is sinking, but it's a data point that suggests the people closest to the business are taking chips off the table.

Mitigation Strategies and Next Steps

Alset EHome International Inc. is attempting to mitigate some of these financial and market risks. They announced a stock repurchase program in June 2025, which is a direct action to counter dilution and support the stock price. Also, their push into non-real estate segments like digital transformation and biohealth is an effort to diversify revenue, though these segments have not yet generated significant revenue.

Here's the quick math: the company is losing money, the stock is volatile, and insiders are selling. As an investor, your next step should be to dig deeper into the actual cash flow statement for the latest quarter to see how they are funding the negative net margin. For a more complete picture, you should read our full analysis on Breaking Down Alset EHome International Inc. (AEI) Financial Health: Key Insights for Investors.

Growth Opportunities

You are looking at Alset EHome International Inc. (AEI) and wondering where the real growth is coming from, especially with the trailing twelve-month (TTM) earnings sitting at a loss of -$12.5 million as of June 30, 2025. The answer is that the company is a diversified holding company, not just a homebuilder, and its future is mapped across four distinct segments: Real Estate, Digital Transformation Technology, Biohealth, and Other Business Activities.

The core growth engine, Real Estate, still drives the majority of revenue, but the strategic focus is on integrating technology and biohealth into its 'EHome communities' concept. This diversification is the biggest play. Honestly, you need to look past the quarterly real estate lumpiness-like the Q2 2025 revenue of only $1.1 million-and see the strategic capital allocation.

Here's the quick math on where the new revenue streams are being built:

• EV Fleet Expansion: Alset's 41.5%-owned affiliate, New Energy Asia Pacific Company Limited, is accelerating the electrification of Hong Kong's taxi fleet. The plan, announced in October 2025, targets a rollout of 5,000 electric taxis through partnerships with Chery's Kaiyi and Vecent Motors. This is a massive, concrete new market.
• Robotics Sector Engagement: A new initiative, announced in March 2025, focuses on establishing strategic partnerships to provide specialized service support across healthcare, logistics, and retail. This is a clear move to monetize the Digital Transformation Technology segment.
• Capital Management: The company is using financial moves to support value, too. They closed a $1.5 million direct offering in January 2025 and authorized a stock repurchase program of up to $1,000,000 through the end of 2025, signaling management's belief the stock is undervalued.

The strength of the company's gross margin, which was a healthy 44.5% in a recent reporting period, shows they are controlling production costs well, but the heavy investment in these new ventures is what keeps the overall earnings negative.

The competitive advantage for Alset EHome International Inc. (AEI) isn't just in building homes; it's in the ecosystem they are trying to create, blending property development with digital and biohealth services. This integrated model is what differentiates them from a pure-play real estate developer. Plus, the stock's strong relative price strength, earning a Momentum Score of 97 as of October 31, 2025, suggests the market is defintely responding to these strategic pivots.

To dive deeper into who is buying into this strategy, you should check out Exploring Alset EHome International Inc. (AEI) Investor Profile: Who's Buying and Why?

The real opportunity lies in the successful execution of the EV and Robotics initiatives, which should start contributing significant revenue in late 2025 and into 2026, shifting the revenue mix away from a sole reliance on real estate. The table below outlines the revenue from the last two reported quarters of 2025, showing the small, but consistent, base they are building from.

What this estimate hides is the potential for a major revenue spike if the 5,000-taxi rollout moves faster than expected, so keep an eye on those EV delivery announcements. The Q3 2025 EPS of $0.05, a positive number, is a small but important sign of potential earnings resilience.