tiprankstipranks
Trending News
More News >
Vertical Aerospace (EVTL)
NYSE:EVTL

Vertical Aerospace (EVTL) AI Stock Analysis

Compare
389 Followers

Top Page

EV

Vertical Aerospace

(NYSE:EVTL)

25Underperform
Vertical Aerospace's stock is facing significant challenges primarily due to its poor financial performance, characterized by substantial operational losses and negative equity. The technical indicators show a bearish trend, and the valuation metrics highlight financial difficulties with a negative P/E ratio. The absence of earnings call data or corporate events further limits any positive outlook.
Positive Factors
Aircraft Design
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.
Financial Strategy
The recent funding and strategic partnerships significantly reduce financial risk for Vertical Aerospace, positioning the company well for future development and certification goals.
Partnerships and Collaborations
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.
Market 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 (EVTL) vs. S&P 500 (SPY)

Vertical Aerospace Business Overview & Revenue Model

Company DescriptionVertical Aerospace Ltd. engages in designing, manufacturing, and selling electric aircraft. It offers VX4, an electric vertical take-off and landing vehicle. The company was founded in 2016 and is headquartered in Bristol, the United Kingdom.
How the Company Makes MoneyVertical 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
20
Very Negative
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
15
Very Negative
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
25
Negative
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
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
0.000.00132.00K87.00K70.00K
Gross Profit
0.000.0068.00K43.00K4.00K
EBIT
-101.95M-98.11M-277.24M-11.52M-7.45M
EBITDA
-101.06M-96.06M-243.71M-10.86M-7.14M
Net Income Common Stockholders
-59.95M-76.11M-245.78M-12.33M-7.48M
Balance SheetCash, Cash Equivalents and Short-Term Investments
48.68M122.81M212.66M839.00K1.03M
Total Assets
84.08M151.24M233.33M8.88M7.31M
Total Debt
2.62M3.16M1.94M7.33M1.17M
Net Debt
-46.06M-59.77M-210.72M6.49M137.00K
Total Liabilities
133.86M143.92M171.77M9.82M3.14M
Stockholders Equity
-49.78M7.32M61.56M-938.00K4.16M
Cash FlowFree Cash Flow
-76.96M-105.72M-30.91M-12.40M-9.38M
Operating Cash Flow
-74.70M-103.71M-27.55M-12.01M-7.28M
Investing Cash Flow
61.38M-62.96M-3.35M-688.00K-2.83M
Financing Cash Flow
169.00K7.25M244.71M12.51M10.87M

Vertical Aerospace Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.80
Price Trends
50DMA
3.76
Positive
100DMA
5.75
Negative
200DMA
6.47
Negative
Market Momentum
MACD
-0.01
Negative
RSI
53.92
Neutral
STOCH
77.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVTL, the sentiment is Neutral. The current price of 3.8 is above the 20-day moving average (MA) of 3.44, above the 50-day MA of 3.76, and below the 200-day MA of 6.47, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EVTL.

Vertical Aerospace Risk Analysis

Vertical Aerospace disclosed 76 risk factors in its most recent earnings report. Vertical Aerospace reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Vertical Aerospace Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$4.21B11.555.28%250.72%4.13%-9.42%
PLPL
56
Neutral
$994.41M-25.68%10.72%16.19%
55
Neutral
$10.21B-40.59%78.34%-1.13%
EHEH
50
Neutral
$1.24B-39.62%285.43%32.57%
49
Neutral
$4.66B-95.88%17.43%
37
Underperform
$1.04B-95.63%-2.94%
25
Underperform
$290.02M115.25%23.26%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EVTL
Vertical Aerospace
3.80
-3.96
-51.03%
EH
Ehang Holdings
17.20
-0.18
-1.04%
EVEX
Eve Holding
3.51
-1.90
-35.12%
RKLB
Rocket Lab USA
22.12
18.12
453.00%
ACHR
Archer Aviation
8.48
4.52
114.14%
PL
Planet Labs PBC
3.35
1.54
85.08%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.