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Intuitive Machines (LUNR)
NASDAQ:LUNR
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Intuitive Machines
(NASDAQ:LUNR)
62Neutral
Positive Factors
Financial flexibility
The redemption of outstanding warrants generated $148M in cash, boosting the company's total cash position to $385M and providing ample financial flexibility for managing large NASA programs.
Mission success
The successful launch demonstrates that LUNR is conquering the learning curve and improving mission repeatability.
Negative Factors
Revenue uncertainty
LUNR generates nearly all of its revenue from programs supporting NASA’s Artemis lunar exploration mission, which has faced numerous delays and cost overruns, making the company highly exposed to a set of risks facing the program.
Intuitive Machines (LUNR) vs. S&P 500 (SPY)
Market Cap
$971.16M
Dividend YieldN/A
Average Volume (3M)15.84M
Price to Earnings (P/E)―
Beta (1Y)3.31
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees382
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-3.01
Shares Outstanding90,381,410
10 Day Avg. Volume22,868,094
30 Day Avg. Volume15,838,558
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.68
Price to Cash Flow (P/CF)-13.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.33Price Target Upside152.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Intuitive Machines Business Overview & Revenue Model
Company DescriptionIntuitive Machines, Inc. is an American space company that's headquartered in Houston, Tx. The company is working on its lunar program, with the goal of providing lunar surface access, lunar orbit delivery, and communications at lunar distance. Intuitive Machines has designed airborne drones and spacecraft, including the Universal Reentry Vehicle (URV), the Nova-C lunar lander, and other flight instrument systems.
How the Company Makes MoneyIntuitive Machines makes money through a diversified revenue model centered around its core offerings in the space exploration sector. The company generates revenue by contracting with government agencies, such as NASA, to deliver payloads and perform missions to the lunar surface. In addition, Intuitive Machines engages in partnerships with commercial space entities to provide comprehensive lunar mission support, including the deployment of lunar landers and communication systems. The company's revenue streams are bolstered by its data analytics services, which offer valuable insights and information derived from space exploration activities. These partnerships and contracts, along with the increasing demand for lunar exploration, are significant contributors to Intuitive Machines' earnings.
Intuitive Machines Financial Statement Overview
Summary
Intuitive Machines showcases robust revenue growth, yet faces significant profitability and cash flow issues. Negative margins and high leverage with negative equity indicate financial instability. Recent increases in assets and cash reserves, however, provide some liquidity relief.Income Statement
Intuitive Machines has shown significant revenue growth over the years, with a notable increase in TTM. However, profitability metrics such as gross profit margin and net profit margin are negative, indicating challenges in cost management and profitability. The EBIT and EBITDA margins are also negative, reflecting ongoing operational losses.45
Neutral
Balance Sheet
The balance sheet reveals high leverage with negative stockholders' equity, suggesting financial instability. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative, which is concerning for future financial health. Despite these issues, the company has managed to increase total assets over time.30
Negative
Cash Flow
Intuitive Machines has a fluctuating cash flow situation with negative free cash flow, highlighting cash management challenges. The operating cash flow to net income ratio is negative, indicating operational difficulties. However, recent financing activities have bolstered cash reserves, providing some liquidity.50
Neutral
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 203.51M | 79.52M | 85.95M | 72.55M | 44.26M | Gross Profit |
| 1.20M | -20.95M | 10.43M | -27.76M | 1.70M | EBIT |
| -52.21M | -56.24M | -5.51M | -37.89M | -4.39M | EBITDA |
| -155.37M | 48.46M | 38.78M | -37.05M | -3.81M | Net Income Common Stockholders |
| -126.61M | 62.80M | -6.41M | -35.65M | -4.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 57.28M | 4.50M | 25.76M | 29.29M | 23.93M | Total Assets |
| 170.77M | 85.91M | 67.00M | 43.45M | 38.04M | Total Debt |
| 43.23M | 43.48M | 25.76M | 14.99M | 5.14M | Net Debt |
| -14.05M | 38.98M | 0.00 | -14.30M | -18.79M | Total Liabilities |
| 214.71M | 139.33M | 124.62M | 95.29M | 53.05M | Stockholders Equity |
| -488.09M | -235.08M | -57.62M | -51.84M | -16.36M |
| Cash Flow | Free Cash Flow | |||
| -99.55M | -75.19M | -15.62M | -19.74M | 5.60M | Operating Cash Flow |
| -96.90M | -45.28M | 784.00K | -16.57M | 8.15M | Investing Cash Flow |
| -1.97M | -29.91M | -16.41M | -3.18M | -2.55M | Financing Cash Flow |
| 157.86M | 53.92M | 12.10M | 25.11M | 1.66M |
Intuitive Machines Technical Analysis
Negative
6.48
Price Trends
17.95
Negative
14.69
Negative
9.88
Negative
Market Momentum
-3.00
Positive
26.22
Positive
5.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUNR, the sentiment is Negative. The current price of 6.48 is below the 20-day moving average (MA) of 14.74, below the 50-day MA of 17.95, and below the 200-day MA of 9.88, indicating a bearish trend. The MACD of -3.00 indicates Positive momentum. The RSI at 26.22 is Positive, neither overbought nor oversold. The STOCH value of 5.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LUNR.
Intuitive Machines Risk Analysis
Intuitive Machines disclosed 47 risk factors in its most recent earnings report. Intuitive Machines 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
Intuitive Machines Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.15B | ― | -23.67% | ― | 12.49% | 24.15% | |
62 Neutral | $971.16M | ― | 25.79% | ― | ― | ― | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% | |
57 Neutral | $266.97M | ― | -132.51% | ― | 24.15% | 35.73% | |
51 Neutral | $8.09B | ― | -40.59% | ― | 78.34% | -1.13% | |
40 Underperform | $107.30M | ― | -83.78% | ― | 3.47% | 53.31% | |
34 Underperform | $5.42M | ― | 688.16% | ― | 30.47% | 92.60% |
* Industrials Sector Average
Performance Comparison
LUNR
Intuitive Machines
7.42
2.13
40.26%
SPCE
Virgin Galactic Holdings
3.22
-30.78
-90.53%
MNTS
Momentus
1.68
-5.46
-76.47%
SPIR
Spire Global
10.24
-1.93
-15.86%
RKLB
Rocket Lab USA
18.43
14.14
329.60%
PL
Planet Labs PBC
4.00
1.83
84.33%
Intuitive Machines Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -44.90% | Next Earnings Date: Mar 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including record revenue growth, a strong cash and backlog position, and notable contract awards. However, these positives were tempered by an operating loss and impairment charges. The overall sentiment is balanced, but leans towards positive due to strategic advancements and financial improvements.Highlights
Record Q3 Revenue Growth
Q3 revenue was $58.5 million, over 4 times the sales from Q3 last year, marking a 359% increase year-over-year.
Strong Cash and Backlog Position
Closed the quarter with a cash balance of $89.6 million and a record backlog of $316.2 million, driven by lunar surface delivery missions and the Near Space Network Services contract.
Near Space Network Services Contract Award
Captured the Near Space Network Services contract valued up to $4.82 billion over the next decade, marking a transformative step in data transmission for in-space communications.
Debt-Free Status
Paid off the outstanding $3 million balance on credit mobilization loan, resulting in zero debt on the balance sheet.
Significant Cash Raise
Raised $80.5 million in cash through the at-the-market offering program, ending the quarter with $106.9 million in cash after key receivables were collected post-quarter.
Lowlights
Operating Loss
Operating loss for the quarter was negative $13.7 million, although it improved from negative $24.0 million in the previous year.
Impairment Charges
Incurred a $5 million impairment of property and equipment, contributing to the operating loss.
OMES Revenue Decline
OMES revenue was $34.1 million for the quarter, down about $5 million from Q2 due to the ramp-down of OSAM, with expectations of continued decline into the next quarters.
Company Guidance
During the Intuitive Machines' third quarter 2024 earnings call, significant guidance metrics were disclosed, highlighting a remarkable revenue growth of $58.5 million, which represents over a fourfold increase compared to the same quarter last year. The company ended the quarter with a substantial cash balance of $89.6 million and no debt, underscoring a robust liquidity position. Additionally, the backlog reached a record $316.2 million, driven by key contracts such as the Near Space Network Services (NSNS) valued at up to $4.82 billion over the next decade. The NSNS contract is expected to significantly boost future margins through a pay-by-the-minute service model, and initial task orders worth $150 million are anticipated to bolster backlog. The company has narrowed its full-year revenue guidance to between $215 million and $235 million, trending towards the midpoint, reflecting ongoing execution and strategic positioning within the burgeoning lunar economy.Intuitive Machines Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Intuitive Machines Launches $75 Million Funding Initiative
Positive
Dec 3, 2024
Intuitive Machines has launched a public offering of $65 million in Class A Common Stock, with an option for underwriters to purchase additional shares, alongside a $10 million private placement with Boryung Corporation. Proceeds will fund general corporate purposes, including operations and potential mergers. The offering, subject to market conditions, reflects Intuitive Machines’ strategic focus on space exploration and infrastructure, promising opportunities for investors keen on innovative sectors.
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.