This aerospace company is ready to take off

Twenty years ago we reached the surface of another planet. This marked one of the most important moments in the history of space exploration. It was 1997 – the first successful landing on Mars via the Pathfinder rover.

Now, space exploration has expanded beyond our own government program, NASA. It has become the passion of some of the most revered progressive minds in the world.

In 2000, Amazon CEO Jeff Bezos started a side project called Blue Origin. Although most of his activities are kept somewhat secret, Bezos has stated that his short-term goals involve space tourism and satellite television. Then, in 2002, Elon Musk started a company called SpaceX. This company was started for the sole purpose of colonizing Mars, even before Musk founded Tesla.

Right now, a primary goal for NASA is to be the first to have a manned mission to Mars. And now, there is increased competition from private companies, SpaceX in particular, as well as a multinational race, similar to that of the race to the moon.

It would be great to be able to invest in a company with such a unique and monopoly-like approach as SpaceX and Blue Horizon, but unfortunately that is not an easy option; these companies are not publicly traded. However, I think the next best thing to do is invest in the systems that make these companies’ rockets “work.”

Towards history like a rocket

Approximately 98% of the material that is launched into the sky during takeoff is related to propulsion. And it doesn’t just make the rocket lift off the ground. Intricate propulsion systems are also necessary to maneuver the ship once it is in space.

With that said, I think I’ve found the best investment in the space industry right now.

It is a relatively small aerospace and defense company here in the United States. His specialty is propulsion systems, which are useful when working with rockets and other space vehicles. In fact, it is the largest producer of space propulsion and power systems in the US.

The company also has a large customer for whom it does most of its business: NASA.

In the past, most of the business you did for NASA involved the space shuttle. This includes 30 trips to and from the International Space Station; it also supplies the batteries that are used to keep the station running. In fact, the propulsion system he designed and built guided the shuttle through 135 missions with a 100% success rate, making it the most reliable rocket ever built in the world.

But in the future, one of the main reasons for the demand will be manned space launches by the United States. Although we have not had a manned space launch since 2011, this activity will be revitalized with the goal of reaching Mars.

This will be done through NASA’s Space Launch System (SLS), which is expected to take off for the first time in 2019. But the SLS is just the launch vehicle; The crew capsule that will carry the passengers is called the Orion, and the company I recommend today is manufacturing the powertrain for nearly every component on these two ships.

You are really making history with this project, as no manned spacecraft has been designed to take humans into deep space, potentially to Mars and even the asteroid belt.

Another project in which this company has been selected to work is the propulsion system of the Experimental Space Plane of the Defense Advanced Research Projects Agency (DARPA). In this project, it is collaborating with Boeing to manufacture a hybrid aircraft / traditional launch vehicle that will be used to send military satellites into space.

The goal of the Department of Defense is to have this fully functional and tested vehicle by 2020. So while this is a smaller project, it is still something to come for years to come.

In the growth spurt phase

Of course, any company can sounds like a great investment, but it still has to be financially stable to really be a great investment.

That’s why i believe Aerojet Rocketdyne Holdings Inc. (NYSE: AJRD) is on the brink of new revenue growth due to the revitalized space program.

This year, its first half sales were up 13% after just 4% growth in the previous two years combined. And over the past year, revenue expectations have risen. A year ago, Aerojet was not supposed to make more than a billion until 2020.

You know that a business is in a growth spurt phase when its expected revenue accelerates within three years.

Finally, when a business enters a growth phase, it is important to ensure that it has enough cash to fund its future operations. Over the past two years, Aerojet has generated millions in cash from operations, essentially doubling its cash position in anticipation of its future projects.

Looking at Aerojet’s share price, it is obvious that the market has discovered the growth potential of the company. The stock has risen approximately 100% over the past year. But I still believe that it has a lot of room to grow in the future.

As a company, Aerojet is still valued cheaply, which equates to less than 1.5 years of revenue. And very soon it will be earning more than its value in just one year.

Overall, in the aerospace and defense industry, it is the seventh cheapest company in valuation terms out of 28 companies, and that’s after its price went up 100% last year.

Clearly, as Aerojet continues to grow, more and more investors will realize its potential and buy its shares.

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