RDW - Unveiling The Success Story Of Redwire Corporation In The Aerospace Sector

2024-04-19 09:38:54 ET

Summary

• Redwire Corporation offers double-digit revenue guidance for 2023 and reports a 19% increase in contracted backlog year over year.
• The company operates in the technology-oriented development sector for the air and space field, with a focus on space structures and related products.
• Redwire's business model is driven by the demand for new space infrastructure technologies, including satellite market growth, and the company's recent acquisitions may accelerate net income and free cash flow growth.

Redwire Corporation ( RDW ) recently offered double-digit revenue guidance for 2023 and noted a 19% contracted backlog increase y/y. Considering that the company operates in a sector that could grow at close to 15% in the coming years, RDW appears to be an attractive business model. If recent inorganic growth continues, and new contracts are signed, I would be expecting net income growth and FCF growth. Even considering risks from lower backlog growth and net sales growth than expected, I think that RDW does trade undervalued.

Redwire Corporation

With a young corporate history that began in 2020 and a series of acquisitions to form an integrated business suite that included the purchase of several technology businesses, Redwire Corporation is a technology-oriented development company toward the air and space field....

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