Intuitive Machines (LUNR, Financial) stock surged 9.65% after securing its fourth moon landing contract from NASA.
The mission, IM-4, involves Intuitive Machines sending a Nova-C-class moon lander to the lunar south pole, delivering six science and technology payloads, including equipment from the European Space Agency.
IM-4 is part of NASA's Commercial Lunar Payload Services (CLPS) initiative. This program contracts private space companies to carry payloads to the moon, supporting Project Artemis, an effort to return humans to the moon. CLPS aims to reduce NASA's mission costs by hiring contractors to perform missions rather than building and operating spacecraft themselves.
Intuitive Machines will receive $116.9 million for the IM-4 mission. For comparison, NASA's first uncrewed lunar lander mission, Surveyor 1, cost the equivalent of $4.2 billion in today's dollars.
Intuitive Machines (LUNR, Financial), currently priced at $5.285 per share, has experienced significant volatility with a market cap standing at $332.55 million. The stock has shown substantial improvement with a YTD price change of 123.09%, though it remains in a volatile state. Over the past 4 weeks, the stock has seen a 47.67% increase, indicating a recent positive trend.
Despite its recent gains, LUNR has several warning signs. The company carries a negative Altman Z-Score of -1.97, placing it in the distress zone with a potential risk of bankruptcy within the next two years. Furthermore, the Beneish M-Score of 5.07 suggests possible financial manipulation. The firm's Piotroski F-Score is low at 2, indicating potentially poor operational performance. Additionally, the Sloan Ratio of -160.63% implies a poor quality of earnings, likely influenced by accruals.
In terms of profitability, the company's net margin stands at -23.72%, indicating a loss. The company's return on assets (ROA) is -31.41%, and return on invested capital (ROIC) is -56.56%, underscoring the firm's struggle to generate profits from its investments. The EV/Revenue ratio of 1.81 suggests the company is not overvalued relative to its revenue, but its negative EBITDA margin of -80.43% raises concerns about the firm's operational efficiency.
For valuation enthusiasts, the GF Value for Intuitive Machines cannot be assessed currently, indicating a lack of sufficient data to determine its intrinsic value.
Given the high level of insider selling activity, with 10 transactions over the past 3 months and no insider buying, it appears internal stakeholders may lack confidence in the company's near-term performance. Overall, while Intuitive Machines (LUNR, Financial) has shown impressive short-term gains, potential investors should be cautious of its financial health and profitability indicators.
