Rocket Lab USA (RKLB:NSD) Fundamental Analysis is Bullish

Bullish Narrative for RKT’s Stock

Rocket Lab USA, Inc. is a company that specializes in the development of reusable small-payload launch vehicles for the space-launch segment. They have taken a strong position in this high-potential niche by developing the Electron rocket, which is capable of putting a 300 kilogram payload into low Earth orbit. The Electron rocket is currently the only reusable small launch vehicle in service and the company is working on supplementing its capabilities by developing the larger Neutron rocket. This ambitious program will see a reusable rocket capable of putting a 13,000 kilo payload into Earth orbit or carrying 1,500 kilograms to Mars or Venus.

Rocket Lab has been launching its missions from its New Zealand facility but starting this month, it will also be able to launch Electron rockets from US soil. The company has scheduled its first US launch from a launch complex at the Virginia Space Mid-Atlantic Regional Spaceport of the NASA Wallops Flight Facility on January 23. This new launch site will facilitate Rocket Lab’s work with customers from the US, both government and commercial entities. The company hit 9 successful launches in 2022, a company record for one calendar year.

The company’s revenues have been showing consistent quarter-over-quarter gains, in the last reported quarter, 3Q22, the company showed a top line of $63.1 million, for a gain of 14% sequentially and an impressive 1,093% year-over-year. Morgan Stanley analyst Kristine Liwag describes Rocket Lab as a “diamond in the rough” and writes that the company presents an attractive risk/reward proposition for an early space mover with real revenue, an increasingly visible growth profile, and initiatives that could potentially upend traditional launch economics. Liwag also believes that satellite manufacturers’ reduced risk appetite in the current economic environment, along with recent setbacks to global launch capacity, will provide tailwinds to Rocket Lab.

Fundamental Analysis Score

RKT’s stock is assigned  with a slight bullish stance to the stock, with a fundamental analysis score of 6.4 out of 10.

Positive Fundamentals of RKT Stock

-High market capitalization

-Low volatility

-Underpriced compared to earnings

-Superior capital utilization

-Superior return on assets

-Positive cash flow

-Superior Earnings Growth

-Superior Revenue Growth

-High Gross Profit to Asset Ratio

 

Rocket Lab Stock Forecast and Analysis

Stock Target Advisor’s own stock analysis of Rocket Lab is slightly bullish, which is based on 9 positive signals and 5 negative signals. At the last closing, Rocket Lab stock price was USD 8.25.  Rocket’s stock  has changed by +10.44% over the past week, +3.13% over the past month and -38.52% over the last year.

About Rocket Lab

Rocket Lab USA, Inc. is a private American aerospace manufacturer and space launch service provider founded in 2006. It is headquartered in Long Beach, California with additional facilities in Huntington Beach, California, and manufacturing and launch sites in Auckland, New Zealand and Wallops Island, Virginia. Its primary product is the Electron rocket, a small-lift launch vehicle capable of delivering payloads of up to 225 kg (496 lb) into low Earth orbit.

Rocket Lab’s Electron rocket is capable of putting a 300 kilogram payload into low Earth orbit, and over the course of 32 launches has successfully deployed 152 satellites. Electron is currently the only reusable small launch vehicle in service, and Rocket Lab is working to supplement its capabilities through development of the larger Neutron rocket – an ambitious program that will see a reusable rocket capable of putting a 13,000 kilo payload into Earth orbit, or carrying 1,500 kilograms to Mars or Venus.

Rocket Lab has been launching its missions from its New Zealand facility, but starting this month it will also be able to launch Electron rockets from US soil. The company has scheduled its first US launch from a launch complex at the Virginia Space Mid-Atlantic Regional Spaceport of the NASA Wallops Flight Facility on January 23. The US launch site will facilitate Rocket Lab’s work with customers from the US, both government and commercial entities. Overall, Rocket Lab hit 9 successful launches in 2022, a company record for one calendar year.

The company’s revenues have been showing consistent quarter-over-quarter gains. In the last reported quarter, 3Q22, the company showed a top line of $63.1 million, for a gain of 14% sequentially – and an impressive 1,093% year-over-year.

 

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