Vertical Aerospace (EVTL) AI Stock Analysis

• Market Cap: $286.63M
• Dividend Yield: N/A
• Average Volume (3M): 249.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.32
• Revenue Growth: N/A
• EPS Growth: 23.26%
• Country: US
• Employees: 350
• Sector: Industrials
• Sector Strength: 70
• Industry: Aerospace & Defense
• EPS (TTM): -0.39
• Shares Outstanding: 84,552,720
• 10 Day Avg. Volume: 239,818
• 30 Day Avg. Volume: 249,990
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -2.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.50
• Price Target Upside: 293.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Vertical Aerospace's stock is currently rated low due to significant financial difficulties and negative technical indicators. The company's substantial operational losses, negative equity, and weak cash flow generation weigh heavily on its financial performance. The technical analysis indicates a bearish trend, and the valuation is unattractive due to the negative P/E ratio and lack of dividends. The stock remains risky, with potential for volatility given its current market sentiment.

Positive Factors

Financial Position

The recent funding and strategic partnerships significantly reduce financial risk for Vertical Aerospace, positioning the company well for future development and certification goals.

Product Differentiation

The VX4 has wider passenger cabin dimensions and higher cargo carrying capacity than some competitors, making it a more attractive and comfortable offering for business class and first-class passengers.

Strategic Partnerships

Partnerships with CAE Inc and Microsoft should support pilot training and software needs to operate and maintain fleets.

Negative Factors

Capital Requirements

It is apparent that the company will require additional capital, which has been considered in the financial projections.

Competition

The return of former Avolon CEO, Domhnal Slattery, as Chairman, is expected to lead to meaningful conversions of bankrupt competitors' backlogs to Vertical's backlog.

Revenue Generation

As the company is still in its research and development phase, it has not generated any revenue yet.

Vertical Aerospace Business Overview & Revenue Model

Company Description

Vertical Aerospace (EVTL) is an innovative aerospace company focused on revolutionizing urban air mobility. Specializing in the design and manufacture of electric vertical take-off and landing (eVTOL) aircraft, the company aims to transform the future of urban transportation by offering zero-emissions, fast, and efficient travel solutions. Vertical Aerospace operates within the aerospace and transportation sectors, providing cutting-edge technology to address the growing demand for sustainable urban air travel.

How the Company Makes Money

Vertical Aerospace generates revenue primarily through the sale and pre-orders of its eVTOL aircraft to commercial airlines, urban mobility operators, and other transportation entities. The company forms strategic partnerships and agreements with key industry players to secure significant pre-order commitments, which serve as a primary source of income. Additionally, Vertical Aerospace may explore secondary revenue streams such as maintenance services, flight operation support, and software solutions for fleet management, although these are not yet fully developed. The company's success is bolstered by its collaborations with technology and aerospace leaders, which enhance its capabilities and market reach.

Vertical Aerospace Financial Statement Overview

Summary

Vertical Aerospace is facing significant financial challenges with persistent operational losses and a fragile balance sheet. While there has been some revenue growth, it is overshadowed by substantial losses and a negative equity position. The company's ability to generate cash remains weak, necessitating a focus on cost control and strategic initiatives to improve financial health.

Income Statement

Vertical Aerospace has shown a modest revenue increase in the TTM period, with a revenue of $11.31 million compared to zero in the previous year. However, the company continues to operate at a significant loss, highlighted by a negative net income of $781.24 million. The gross profit margin is 67.21%, but the EBIT and EBITDA margins are deeply negative, indicating operational inefficiencies and high operating costs.

Balance Sheet

The company's balance sheet reveals significant financial distress with a negative stockholders' equity of $499.34 million. The debt-to-equity ratio is undefined due to negative equity, and the equity ratio is also negative, signaling insolvency. Despite having a low total debt, the high level of liabilities relative to assets is concerning.

Cash Flow

Cash flow analysis shows a negative free cash flow of $44.68 million in the TTM period, though there is a slight improvement compared to the previous year. The operating cash flow to net income ratio is negative, reflecting cash outflows and further challenging financial management. The firm struggles to generate positive cash flow from its operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
11.31M	0.00	0.00	132.00K	87.00K	70.00K
	Gross Profit
7.60M	0.00	0.00	68.00K	43.00K	4.00K
	EBIT
-61.17M	-101.95M	-98.11M	-277.24M	-11.52M	-7.45M
	EBITDA
-78.70M	-101.06M	-96.06M	-243.71M	-10.86M	-7.14M
	Net Income Common Stockholders
-781.24M	-59.95M	-76.11M	-245.78M	-12.33M	-7.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.56M	48.68M	122.81M	212.66M	839.00K	1.03M
	Total Assets
47.73M	84.08M	151.24M	233.33M	8.88M	7.31M
	Total Debt
2.20M	2.62M	3.16M	1.94M	7.33M	1.17M
	Net Debt
-20.36M	-46.06M	-59.77M	-210.72M	6.49M	137.00K
	Total Liabilities
547.07M	133.86M	143.92M	171.77M	9.82M	3.14M
	Stockholders Equity
-499.34M	-49.78M	7.32M	61.56M	-938.00K	4.16M
Cash Flow		Free Cash Flow
-44.68M	-76.96M	-105.72M	-30.91M	-12.40M	-9.38M
	Operating Cash Flow
-44.64M	-74.70M	-103.71M	-27.55M	-12.01M	-7.28M
	Investing Cash Flow
957.00K	61.38M	-62.96M	-3.35M	-688.00K	-2.83M
	Financing Cash Flow
-355.86K	169.00K	7.25M	244.71M	12.51M	10.87M

Vertical Aerospace Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVTL, the sentiment is Negative. The current price of 3.43 is below the 20-day moving average (MA) of 3.62, below the 50-day MA of 4.17, and below the 200-day MA of 6.77, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 35.45 is Neutral, neither overbought nor oversold. The STOCH value of 5.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVTL.

Vertical Aerospace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$7.50B	12.89	3.19%	3.38%	3.64%	-14.27%
EH	55 Neutral	$939.35M	―	-39.63%	―	285.43%	32.34%
PL	52 Neutral	$1.02B	―	-25.68%	―	10.72%	16.19%
RKLB	49 Neutral	$8.90B	―	-40.59%	―	78.34%	-1.13%
ACHR	44 Neutral	$3.81B	―	-95.88%	―	―	17.43%
EVEX	37 Underperform	$1.02B	―	-95.63%	―	―	-2.94%
EVTL	25 Underperform	$286.63M	―	115.25%	―	―	23.26%