Intuitive Machines, Inc. (NASDAQ: LUNR)

Sector: Industrials Industry: Aerospace & Defense CIK: 0001844452
Market Cap 1.45 Bn
P/B -3.59
P/E -7.51
P/S 6.60
ROIC (Qtr) 35.87
Div Yield % 0.00
Rev 1y % (Qtr) -10.33
Total Debt (Qtr) 371.24 Mn
Debt/Equity (Qtr) -0.92

About

Intuitive Machines, Inc., a prominent player in the space industry, is a company that has been making significant strides in the establishment of lunar infrastructure and commerce on the Moon. The company, which was founded in 2013 and is headquartered in Houston, Texas, operates in four primary business lines: Lunar Access Services, Orbital Services, Lunar Data Services, and Space Products and Infrastructure. Intuitive Machines' operations span a diverse range of activities, all geared towards contributing to the growth of the space industry....

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 624.02M provide 99.14x coverage of short-term debt 6.29M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (8.99M) provides exceptional 45.39x coverage of interest expenses (198000), showing strong debt service capability.
  • Free cash flow of (39.90M) provides exceptional 201.52x coverage of interest expense (198000), showing strong debt service ability.
  • Retained earnings of (370.67M) represent substantial 0.92x of equity (404.17M), indicating strong internal capital generation.
  • Tangible assets of 753.53M provide robust 9.21x coverage of other current liabilities 81.78M, indicating strong asset backing.

Bear case

  • Operating cash flow of (8.99M) barely covers its investment activities of (30.91M), with a coverage ratio of 0.29, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (8.99M) shows concerning coverage of stock compensation expenses of 8.40M, with a -1.07 ratio indicating potential earnings quality issues.
  • Free cash flow of (39.90M) provides weak coverage of capital expenditures of 30.91M, with a -1.29 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (192.82M) show weak coverage of depreciation charges of 2.73M, with a -70.63 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (39.90M) represents just -0.12x of debt issuance 334.58M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Contract with Customer, Basis of Pricing Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Aerospace & Defense
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GE General Electric Co 342.94 Bn 42.54 7.80 20.84 Bn
2 RTX RTX Corp 252.05 Bn 38.24 2.93 40.71 Bn
3 BA Boeing Co 174.43 Bn -17.16 2.16 53.35 Bn
4 LMT Lockheed Martin Corp 126.61 Bn 30.15 1.73 22.19 Bn
5 GD General Dynamics Corp 95.62 Bn 22.69 1.86 8.01 Bn
6 NOC Northrop Grumman Corp /De/ 89.30 Bn 22.22 2.18 16.96 Bn
7 HWM Howmet Aerospace Inc. 88.16 Bn 60.80 11.05 3.19 Bn
8 TDG TransDigm Group INC 80.97 Bn 43.39 9.17 30.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.52 3.58
EV to Cash from Ops. EV/CFO -127.09 58.38
EV to Debt EV to Debt 3.08 98.04
EV to EBIT EV/EBIT -5.92 19.42
EV to EBITDA EV/EBITDA -17.63 33.60
EV to Free Cash Flow [EV/FCF] EV/FCF -28.63 91.66
EV to Market Cap EV to Market Cap 0.79 1.13
EV to Revenue EV/Rev 5.19 11.27
Price to Book Value [P/B] P/B -3.59 4.81
Price to Earnings [P/E] P/E -7.51 31.79
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -321.49 -3.75
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 22.95
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 14.15
Interest Coverage Int. cover (Qtr) 973.85 -18.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -316.17 -50.32
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 580.89 1,609.43
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.75
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -53.38 -30.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.29 10.65
EBIT Growth (1y) % EBIT 1y % (Qtr) -53.14 -26.90
EBT Growth (1y) % EBT 1y % (Qtr) -52.89 -27.25
EPS Growth (1y) % EPS 1y % (Qtr) 16.84 -99.21
FCF Growth (1y) % FCF 1y % (Qtr) 53.28 6.61
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -50.29 -5.55
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.29 0.51
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 5.89 1.76
Current Ratio Curr Ratio (Qtr) 6.28 3.72
Debt to Equity Ratio Debt/Equity (Qtr) -0.92 0.07
Interest Cover Ratio Int Coverage (Qtr) 973.85 -18.00
Times Interest Earned Times Interest Earned (Qtr) 973.85 -18.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -86.40 -345.84
EBIT Margin % EBIT Margin % (Qtr) -87.67 -382.63
EBT Margin % EBT Margin % (Qtr) -87.58 -387.93
Gross Margin % Gross Margin % (Qtr) 0.50 -33.31
Net Profit Margin % Net Margin % (Qtr) -87.90 -389.13