AIM

We rate AIM ImmunoTech Inc. (AIM) as Avoid with a composite score of 30.0/100 at a current price of $1.05. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.

The rating is primarily driven by strength in investment (34th percentile) and quality (32th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (18th percentile) and stability (26th percentile) tempers our overall conviction. We assign a Narrow Moat rating (42/100), High uncertainty, and Poor capital allocation.

Key items to watch: momentum to confirm whether the current price trend has legs; the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

AIM ImmunoTech Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 30.0/100 places it at rank #4526 in our full 7,333-stock universe. At $7M in market capitalization, AIM ImmunoTech Inc. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue contraction of -48% combined with momentum at the 18th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.

The margin cascade tells an important story: gross margins of 100% (+57.5pp vs sector) narrow to operating margins of -13860% (-13861.3pp vs sector) and net margins of -14383.6%, yielding a gross-to-net conversion rate of -14384%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $1.05, AIM ImmunoTech Inc. is trading at a premium to fundamental value. Our value factor score of 30/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.

The stock currently trades at a P/E of 0.7x (a 97% discount to the sector median of 22.3x), P/S of 35.0x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a High uncertainty rating to AIM ImmunoTech Inc.. Key risk factors include current negative profitability (net margin -14383.6%), below-average price stability (26th percentile), weak quality scores (32th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: current negative profitability (net margin -14383.6%); below-average price stability (26th percentile); weak quality scores (32th percentile); low beta of -47.93 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 26th percentile and quality factor at the 32th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 100% provide a buffer against cost pressures. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate AIM ImmunoTech Inc.'s capital allocation as Poor. Key concerns include negative profitability, weak asset returns (ROA -245.4%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — AIM ImmunoTech Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, AIM ImmunoTech Inc. receives a Avoid rating with a composite score of 30.0/100 (rank #4526 of 7,333). Our quantitative framework assigns a Narrow Moat (42/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 28/100.

Our analysis does not support a constructive view on AIM ImmunoTech Inc. at this time. The combination of the current quantitative profile, high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.