XXAAU AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP

OTC Real Estate MN CIK: 0000931755
AI RATING
SELL
50% Confidence

Investment Thesis

While the fund demonstrates strong cash flow generation (FCF margin 79.1%) and healthy liquidity, declining revenue (-10.4% YoY) combined with an unsustainably high net margin (118.3%) indicates dependence on non-operating gains rather than operational performance. The poor data transparency, small asset base ($9.4M), and absence of insider activity further reduce conviction in the fund's fundamentals.

Strengths

  • + Strong free cash flow generation of $708.7K with 79.1% FCF margin
  • + Healthy liquidity position with 2.25x current and quick ratios
  • + Net income growth of 307% YoY demonstrates positive earnings momentum

Risks

  • ! Revenue declining 10.4% YoY indicates deteriorating operational performance
  • ! Net margin of 118.3% is unsustainable and reflects heavy reliance on non-operating gains or one-time events
  • ! Significant data gaps (missing balance sheet metrics, stockholders equity, debt/equity ratio) limit financial analysis
  • ! No insider activity in 90 days suggests potential lack of management conviction
  • ! Small scale and limited partnership structure add structural uncertainty

Key Metrics to Watch

Financial Metrics

Revenue
896.2K
Net Income
1.1M
EPS (Diluted)
$0.00
Free Cash Flow
708.7K
Total Assets
9.4M
Cash
611.8K

Profitability Ratios

Gross Margin N/A
Operating Margin 24.7%
Net Margin 118.3%
ROE N/A
ROA 11.2%
FCF Margin 79.1%

Balance Sheet & Liquidity

Current Ratio
2.25x
Quick Ratio
2.25x
Debt/Equity
N/A
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: 2026-04-19T16:42:26.406281 | Data as of: 2025-12-31 | Powered by Claude AI