MAXR - Here's My Top Space Stock to Buy on the Dip
Maxar Technologies (NYSE: MAXR) share prices currently fall in line with the market dip at around 20% lower from this time last year, putting it right on pace with the S&P 500 average, but the company remains a solid performer with increasing revenues. The satellite manufacturer gained even greater relevance this year when its global intelligence arm saw use by the Pentagon and agencies worldwide as Russian's invasion of Ukraine and instability in Eastern Europe took center stage.
Maxar's strength comes primarily in its ability to both manufacture new satellites and deliver intelligence with proprietary systems both on the hardware and software side of operations. Its intelligence side actually drives nearly 60% greater revenues than manufacturing alone, falling in at an annualized expectation of $1.17 billion versus $735 million, respectively. This gives the company a strong competitive edge and allows it to pair the two elements for sales to major global organizations and initiatives, including the Pentagon and Google Maps from Alphabet .
The company has not yet gained profitability, and a look at its liquidity shows a total of $341 million available. This total includes $326 million in revolving accounts ($500 million total debt capacity minus current borrowings as well as undrawn or outstanding leters of credit) and $15 million as cash on hand. Strong liquidity helps ensure its continued growth and operation. The company managed positive bottom lines on earnings reports previously, with a net income of $45 million in the second quarter of 2021, but a full year of profitability remains out of reach, and the most recent quarterly loss came in at $30 million.
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Here's My Top Space Stock to Buy on the Dip