Jef Bezos travels to space. A long time ago Amazon: The CEO announced earlier this month that he intends to launch a rocket shortly after leaving his active role in the e-commerce giant scheduled for July 5.
Bezos and his brother will be one of the first travelers to launch his Blue Origin space company, which is the beginning of what Blue Origin hopes to be a lucrative space tourism business.
Exciting time to pursue Blue Origin, investors would love to take a walk. But Bezos, thanks to his Amazon billions, does not need external funding to transport the Blue Origin aircraft, կարծես does not seem to want to introduce the company to the public.
Even if buying Blue Origin shares is out of the question, there are other ways for investors to invest in the growth potential of the universe. This is why three Fool members believe Maxar Technologies: (NYSE: MAXR), Northrop Grumman (NYSE: NOC)Believe it or not, General Motors: (NYSE: GM) deserves the attention of those who are interested in investing outside of this world.
This precious stock can be traded for three years
Rich Smith (Maxar Technologies): I have to admit that I have not always been a fan of Maxar Technologies, the satellite operator depicting the Earth, the space technology-industrial, but this stock is starting to grow on me.
Following last month’s earnings report for the first quarter of 2021, Maxar was punished by investors for its huge loss. At the same time, however, Maxar took significant steps to adjust its balance sheet in the first quarter, repaying $ 350 million in debt and reducing its net debt burden to $ 2.3 billion. Ed is right, it’s still almost as big as the company’s own market capitalization of $ 2.9 billion. But it is moving in the right direction, for which the company deserves some applause.
It is also noteworthy that Maxar has returned to positive cash flow. With $ 20 million in cash earned over the past four quarters, the company is likely to end its free cash flow this year (after burning cash last year). Analysts looking back at the shares see the FCF growing by almost 600% next year to $ 188 million as the company finishes building its new satellite fleet and then nearly doubles in 2023. reaching $ 349 million, according to S&P Global. Market research.
What does this mean for investors? Based on the company’s current $ 5.2 billion, Maxar shares are trading 15 times less than cash profit in just two years, barely 12 times the projected profit for fiscal year 2023. It will pay a hefty price for one of the leading satellite imagery companies on Earth հիմնական, the main participant in NASA’s Artemis Art project, which is going to return to the Moon.
A more “defensive” space choice
Lou Whiteman (Northrop Grumman): Undoubtedly, the area is cool. And the pace of innovation in the industry is accelerating, which is a good basis for investors to be encouraged.
The problem is that the area is still a relatively small market for all developments. NASA’s annual budget seems impressive at $ 20 billion, but the portion provided to contractors is unlikely to exceed the cost of one of the Pentagon’s aircraft carriers. Private demand for space services, from tourism to satellites, is stable but typical. There is only as much as one can expect the growth of a space company if something in the market does not change dramatically.
Northrop Grumman offers the best space portfolio in its class with a huge defensive arsenal. The company has a long history as a government space leader, which was promoted in 2018 with the acquisition of Orbital ATK. Today, Northrop’s space business is involved in launching և propulsion systems, human spaceflight, commercial satellites, cargo cargo, and a large secret component.
Space has been a great performer inside Northrop. The space business grew by 29% in sales in the last quarter, doubling its accumulation in 2020. Total area generated $ 2.5 billion in revenue in the quarter, accounting for about 27% of Northrop’s total sales.
Investors in Northrop receive not only an impressive space benefit, but also the Pentagon’s priorities, including a $ 85 billion plan to replace the country’s intercontinental ballistic missile and a separate $ 50 billion grant to build a new B-21 bomber. Northrop’s astronauts’s space chops should also help the company win a growing share of supersonic and rocket contracts that can spin at more than five times the speed of sound.
Northrop Grumman enables investors to acquire the industry-leading space portfolio, taking advantage of a company with an accumulated 7 1.7% return on $ 80 billion in orders. All this from a reasonably earned 13 times վաճառ 1.6 times sales.
Given the risks: uncertainty about open space investments, this is one of the most attractive options for buying a modern space race.
How could this old automaker become a powerful supplier to the universe?
John on Rosiver (General Motors). GM is a lot, but is it really? space: company?
The trick is that while GM has played some interesting roles in America’s space exploration efforts over the years, GM is not really a space company, at least not yet.
But the axis of the automotive industry to electric vehicles has led to GM developing some exciting new areas of business, և there is at least one could to play a significant role in the efforts to explore and materialize the universe in the coming years. Fuel cells.
Fuel cells are devices that chemically convert hydrogen gas energy into electricity, leaving only water. They have been around for decades, և GM has been in contact with them for over 50 years, but it is only recently that GM և others’ efforts to make them more viable have begun to bear fruit.
GM’s Hydrotec fuel cell systems use fuel cells manufactured by GM և GM Joint Venture Honda Motor:. (Honda uses fuel cells in its separate product range). In the last few months, GM has entered into deals to develop Hydrotec fuel cell systems Nikola and Navistar International:, for railway locomotives Vabtek, with German aerospace supplier Liebherr-Aerospace.
Can the area be next? I think it is possible. Finally, GM also recently announced a partnership deal Lockheed Martin: New moonwalker – 50 years after GM helped develop the first moonwalker.
More broadly, GM’s plan to become a major supplier of fuel cells will provide a fascinating new revenue stream that does not depend on global car sales ups and downs. As GM moves out of cars ատար trucks և to become a provider of mobility services և products (e.g. fuel cells), its base price երի stock price is likely to benefit.
This article presents the opinion of a writer who may disagree with the position of the “official” offer of Motley Fool Premium Consulting. We are motley! Investigating an investment thesis, even our own, helps all of us think critically about investing, making decisions that will help us become smarter, happier, and richer.