Last Updated: 18 Sep 2024
Executive Summary
Sidus Space Inc. (SIDU) is a space-as-a-service company that designs, manufactures, launches, and collects data from commercial satellites. Despite its promising business model, the company faces challenges due to negative earnings, low revenue growth, and a highly competitive industry. The current stock price of $2.54 reflects these challenges and the company's potential for growth.
Company Overview
Sidus Space is headquartered in Florida and has operations worldwide. The company's services include satellite design, manufacturing, launch services, and data collection and analysis. Sidus Space aims to provide affordable and accessible space solutions to various industries, including telecommunications, Earth observation, and space exploration.
Fundamental Analysis
Revenue: Revenue for the trailing twelve months (TTM) is $4.31 million, showing a decline of 0.32% year-over-year.
Earnings: The company has negative earnings, with an EBITDA of -$13.07 million and a diluted EPS of -$8.26 TTM.
Profitability: Operating margin TTM is -4.20%, and return on assets and equity TTM are both negative.
Valuation: The current price-to-sales ratio is 2.505, indicating the stock may be undervalued compared to its peers.
Technical Analysis
Trend: The stock has been trending downward since its peak in 2021.
Support and Resistance: Key support levels are at $2 and $1.50, while resistance levels are at $3 and $4.
Moving Averages: The 50-day moving average is $2.776, and the 200-day moving average is $4.192.
Short Term Outlook
In the short term, Sidus Space faces challenges due to negative earnings and slow revenue growth. The stock is likely to remain range-bound between $2 and $3 until the company shows signs of improvement.
Long Term Outlook
The long-term outlook for Sidus Space depends on the company's ability to execute its growth strategy, secure profitable contracts, and improve its financial performance. The space industry is expected to grow significantly in the coming years, providing potential opportunities for the company.
Analyst Recommendations
Analyst Target Price: $10
Analyst Rating: Buy
Conclusion
Sidus Space Inc. is a promising company with a strong business model but faces challenges in the near term. Investors should consider the company's long-term potential but also be aware of the risks associated with its negative earnings and competitive industry. The current stock price reflects these factors and provides an opportunity for investors who believe in the company's future growth prospects.
