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Vertical Aerospace (EVTL)
NYSE:EVTL
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Vertical Aerospace
(NYSE:EVTL)
Rating:25Underperform
Price Target:―
Positive Factors
Financial Performance
EVTL has driven achievements with materially lower levels of spending compared to industry peers.
Regulatory Approvals
Shorter-term catalysts like regulatory approvals and flight milestones can drive increased confidence in the longer-term opportunity.
Strategic Partnerships
Vertical has expanded its existing partnership with Honeywell toward certifying two of the most critical systems on the VX4 that make it safer and easier to fly, with a potential $1B in projected contract value through 2035.
Negative Factors
Equity Offering
The price target has been reduced to $11, reflecting the dilution effect of the recent equity offering.
Market Recognition
EVTL is a pure play eVTOL OEM getting minimal credit for gaining ground on industry leaders in what is expected to be a supply constrained industry.
Stock Valuation
EVTL has underperformed year-to-date and trades at a notable valuation discount compared to industry leaders.
Vertical Aerospace (EVTL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$643.87M
Dividend YieldN/A
Average Volume (3M)2.03M
Price to Earnings (P/E)―
Beta (1Y)2.76
Revenue GrowthN/A
EPS Growth23.26%
CountryUS
Employees350
SectorIndustrials
Sector Strength94
IndustryAerospace & Defense
Share Statistics
EPS (TTM)4.64
Shares Outstanding96,677,720
10 Day Avg. Volume4,370,619
30 Day Avg. Volume2,029,559
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)-7.49
Price to Sales (P/S)0.00
P/FCF Ratio-4.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.25Price Target Upside47.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
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 Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 31.66%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Vertical Aerospace with significant achievements such as the hybrid aircraft announcement and progress in certification and partnerships. However, challenges remain regarding regulatory hurdles and financial management.Q1-2025 Updates
Positive Updates
Hybrid Aircraft Announcement
Vertical Aerospace announced a new hybrid aircraft with a range of 1000 miles, opening additional market opportunities in defense, cargo, emergency services, and long-range commercial missions.
Progress in Certification Process
The company is on track with the certification process, with all piloted flight tests expected to be completed by 2025, moving at pace through the certification process with the UK Civil Aviation Authority.
Record-Breaking Piloted High Speed Taxi Tests
Achieved record-breaking piloted high-speed taxi tests with the VX4 demonstrator, validating key systems under real world conditions.
Partnership with Honeywell
Formalized and expanded partnership with Honeywell to deliver flight controls and aircraft management systems, worth approximately $1 billion over the next 10 years.
Battery Development and Prospective Revenue
Advanced battery development, with batteries expected to be a major revenue stream, constituting 50% of future revenues with a gross margin greater than 40%.
Financial Efficiency and Planning
Continuing sector-leading capital efficiency, with net cash used in operating activities for Q1 2025 approximately $30 million, and cash spend guidance for the year unchanged at $110 million to $125 million.
Negative Updates
Potential Certification Delays
The hybrid aircraft will be certified separately and might experience a delay beyond the 2028 timeline set for the electric VX4 aircraft.
Cash Position
Closed the quarter with approximately $90 million cash and cash equivalents on hand, which may require careful management to avoid liquidity issues.
Regulatory Challenges
The need for extensive interaction with the UK Civil Aviation Authority, submitting around 20,000 pages of documentation, highlights the regulatory complexities involved.
Company Guidance
In the Q1 2025 earnings call for Vertical Aerospace, the company provided guidance across several metrics, emphasizing its strategic progress and future potential. They highlighted their ongoing advancements in the certification process, projecting completion by 2028 with piloted flight tests on track for 2025. Financially, Vertical Aerospace reported a net cash usage of approximately $30 million for Q1 and maintained their full-year spend guidance at $110 million to $125 million, with $90 million in cash and equivalents at the end of the quarter. Additionally, the company revealed plans for a hybrid aircraft with a 1,000-mile range, expanding market opportunities, and detailed their capital-efficient approach, spending 75% less than peers for a superior product. They also reiterated their robust order book with major partners and discussed the strategic decision to adopt the CCS charging standard, further enhancing their operational framework.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.20
Very Negative
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.15
Very Negative
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.25
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 132.00K | 87.00K |
| Gross Profit | 0.00 | 0.00 | 0.00 | 68.00K | 43.00K |
| EBITDA | -60.08M | -101.06M | -96.06M | -243.71M | -10.86M |
| Net Income | -781.24M | -59.95M | -76.11M | -245.78M | -12.33M |
Balance Sheet | |||||
| Total Assets | 47.73M | 84.08M | 151.24M | 233.33M | 8.88M |
| Cash, Cash Equivalents and Short-Term Investments | 22.56M | 48.68M | 122.81M | 212.66M | 839.00K |
| Total Debt | 2.20M | 2.62M | 3.16M | 1.94M | 7.33M |
| Total Liabilities | 547.07M | 133.86M | 143.92M | 171.77M | 9.82M |
| Stockholders Equity | -499.34M | -49.78M | 7.32M | 61.56M | -938.00K |
Cash Flow | |||||
| Free Cash Flow | -46.72M | -76.96M | -105.72M | -30.91M | -12.40M |
| Operating Cash Flow | -46.29M | -74.70M | -103.71M | -27.55M | -12.01M |
| Investing Cash Flow | 1.73M | 61.38M | -62.96M | -3.35M | -688.00K |
| Financing Cash Flow | 18.77M | 169.00K | 7.25M | 244.71M | 12.51M |
Vertical Aerospace Technical Analysis
Positive
6.28
Price Trends
5.78
Positive
4.76
Positive
5.74
Positive
Market Momentum
0.20
Negative
52.89
Neutral
68.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVTL, the sentiment is Positive. The current price of 6.28 is above the 20-day moving average (MA) of 6.17, above the 50-day MA of 5.78, and above the 200-day MA of 5.74, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.08B | ― | -22.54% | ― | 9.52% | 24.27% | |
71 Outperform | ¥269.20B | 13.84 | 8.47% | 2.89% | 6.33% | 13.01% | |
62 Neutral | $23.56B | ― | -45.38% | ― | 64.98% | -10.52% | |
53 Neutral | $1.43B | ― | -43.18% | ― | 167.99% | 22.75% | |
49 Neutral | $7.20B | ― | -73.89% | ― | ― | 17.43% | |
43 Neutral | $2.17B | ― | -148.98% | ― | ― | -2.94% | |
25 Underperform | $643.87M | ― | 115.25% | ― | ― | 23.26% |
* Industrials Sector Average
Performance Comparison
EVTL
Vertical Aerospace
6.28
-3.21
-33.83%
EH
Ehang Holdings
19.90
7.48
60.23%
EVEX
Eve Holding
7.20
3.86
115.57%
RKLB
Rocket Lab USA
48.13
42.88
816.76%
ACHR
Archer Aviation
10.99
6.59
149.77%
PL
Planet Labs PBC
6.84
4.45
186.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.