RDW - Redwire: Capitalizing On The Space Economy
2024-07-12 11:03:46 ET
Summary
- Redwire is a space infrastructure provider that is positioned to benefit from the growth of the space economy.
- The company's growth is strong, supported by the increasing number of satellites, defense applications, in-space manufacturing, and lunar exploration.
- Redwire is progressing towards breakeven, reducing the risk of dilution, despite the company's fairly modest cash position.
- Redwire's valuation is reasonable given the size of the opportunity. I would not count on further multiple expansion, but growth should ensure the share price does well going forward.
Redwire ( RDW ) is a space infrastructure provider that stands to benefit from expansion of the space economy. The company offers a range of products and services across areas like manufacturing, sensors and satellite platforms. Redwire’s growth is currently strong, benefitting from the proliferation of satellites and the emergence of areas like defense, in-space manufacturing and lunar exploration. The company has also been an active acquirer and plans on further consolidating the space products and services market. Redwire is progressing towards breakeven, helping to reduce uncertainty about its viability, and the risk of dilution. The company has a fairly small cash balance though, meaning capital raises to support growth remain a possibility.
Market
Redwire offers a broad portfolio of products and services related to the space economy. As a result, the company is positioned to benefit from:
- The emergence of space as a warfighting domain
- Growth in lunar infrastructure
- The proliferation of satellites
- Increased deep space exploration