Lilium's (LILM, Financial) stock experienced a significant movement today, falling by 21.32%. This decline occurred after the announcement that the company would not receive a loan guarantee from Germany's federal government.
The removal of the expected loan guarantee was part of a larger plan involving a 100 million-euro ($109 million) convertible bond issuance, half of which was anticipated to be supported by the guarantee. Despite this setback, Lilium is negotiating with the German province of Bavaria for a potential 50 million-euro guarantee for the bond issue.
Lilium's current stock price is $0.5753, with a market capitalization of $363.96 million. The company is engaged in the development of the Lilium Jet, an electric vertical takeoff and landing aircraft designed for passenger and cargo transport. Despite the financial challenges, the company has recently completed a successful systems power-on test, marking a positive step in validating the aircraft’s design and functionality.
Analyzing Lilium's financial metrics, the company faces considerable challenges, indicated by a severe Piotroski F-Score of 1. This suggests poor business operations and financial strength. The company's GF Value indicates that it cannot be evaluated at this time due to insufficient data. For more details on GF Value, please visit the GF Value page.
The aerospace and defense industry, where Lilium operates, is characterized by high volatility with a beta of 2.12 and a significant year-to-date price change of -51.25%. The company has no reported earnings per share (EPS) growth over the past five years and struggles with cash flow and equity deficiencies.
Investors should consider the substantial risks and financial uncertainties surrounding Lilium (LILM, Financial) before making investment decisions. The company’s ability to secure necessary financial support and successfully commercialize its innovative aerospace technology will be crucial for future performance.
