Virgin Galactic Holdings (NYSE:SPCE) - Share price, News & Analysis

SPCE fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

SPCE Stock Overview

Rewards

Trading at 13.8% below our estimate of its fair value

Revenue is forecast to grow 68.07% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Does not have meaningful revenue ($4M)

Virgin Galactic Holdings Competitors

Lockheed Martin

NYSE:LMT

US$113.1b

Boeing

NYSE:BA

US$71.4b

Northrop Grumman

NYSE:NOC

US$68.9b

L3Harris Technologies

NYSE:LHX

US$44.2b

Price History & Performance

Summary of all time highs, changes and price drops for Virgin Galactic Holdings
Historical stock prices
Current Share Price	US$6.55
52 Week High	US$57.51
52 Week Low	US$5.14
Beta	0.78
1 Month Change	-18.02%
3 Month Change	-22.02%
1 Year Change	-68.91%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-44.26%

Recent News & Updates

Apr 07

Virgin Galactic Update: We Keep Staying Away

Virgin Galactic sold new tickets for more than 700 tickets booked (which will be processed no earlier than 2025/2026). The company collected $425 million through convertible bonds; for now the company has enough cash to sustain its project. Flights will not begin consistently until 2023. Delta Class (the key to achieving a significant increase in flights) will not be ready before 2026.

Mar 25

We're Not Very Worried About Virgin Galactic Holdings' (NYSE:SPCE) Cash Burn Rate

Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and...

Shareholder Returns

	SPCE	US Aerospace & Defense	US Market
7D	0.2%	-2.6%	-2.7%
1Y	-68.9%	1.2%	-12.9%

Return vs Industry: SPCE underperformed the US Aerospace & Defense industry which returned 1.2% over the past year.

Return vs Market: SPCE underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is SPCE's price volatile compared to industry and market?
SPCE volatility
SPCE Average Weekly Movement	13.7%
Aerospace & Defense Industry Average Movement	6.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: SPCE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: SPCE's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2017	804	Michael Colglazier	https://www.virgingalactic.com

Virgin Galactic Holdings, Inc. focuses on the development, manufacture, and operation of spaceships and related technologies for conducting commercial human spaceflight and flying commercial research and development payloads into space. It is also involved in the ground and flight testing, and post-flight maintenance of its spaceflight system vehicles. The company serves private individuals, researchers, and government agencies.

Virgin Galactic Holdings Fundamentals Summary

How do Virgin Galactic Holdings's earnings and revenue compare to its market cap?
SPCE fundamental statistics
Market Cap	US$1.69b
Earnings (TTM)	-US$316.26m
Revenue (TTM)	US$3.61m

469.2x

P/S Ratio

-5.4x

P/E Ratio

Is SPCE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPCE income statement (TTM)
Revenue	US$3.61m
Cost of Revenue	US$297.00k
Gross Profit	US$3.31m
Other Expenses	US$319.58m
Earnings	-US$316.26m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.22
Gross Margin	91.77%
Net Profit Margin	-8,758.29%
Debt/Equity Ratio	55.1%

How did SPCE perform over the long term?

See historical performance and comparison

Valuation

Is Virgin Galactic Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

13.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SPCE ($6.55) is trading below our estimate of fair value ($7.6)

Significantly Below Fair Value: SPCE is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: SPCE is unprofitable, so we can't compare its PE Ratio to the US Aerospace & Defense industry average.

PE vs Market: SPCE is unprofitable, so we can't compare its PE Ratio to the US market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SPCE's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: SPCE's PB Ratio (2.3x) is in line with the US Aerospace & Defense industry average.

Future Growth

How is Virgin Galactic Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

39.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPCE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SPCE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SPCE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SPCE's revenue (68.1% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: SPCE's revenue (68.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SPCE is forecast to be unprofitable in 3 years.

Past Performance

How has Virgin Galactic Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-24.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SPCE is currently unprofitable.

Growing Profit Margin: SPCE is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SPCE is unprofitable, and losses have increased over the past 5 years at a rate of 24% per year.

Accelerating Growth: Unable to compare SPCE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SPCE is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (23.9%).

Return on Equity

High ROE: SPCE has a negative Return on Equity (-42.05%), as it is currently unprofitable.

Financial Health

How is Virgin Galactic Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SPCE's short term assets ($949.6M) exceed its short term liabilities ($142.9M).

Long Term Liabilities: SPCE's short term assets ($949.6M) exceed its long term liabilities ($457.2M).

Debt to Equity History and Analysis

Debt Level: SPCE has more cash than its total debt.

Reducing Debt: Insufficient data to determine if SPCE's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SPCE has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: SPCE has sufficient cash runway for 2.6 years if free cash flow continues to reduce at historical rates of 12.8% each year.

Dividend

What is Virgin Galactic Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SPCE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SPCE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SPCE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPCE's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SPCE has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure

CEO

Michael Colglazier (54 yo)

1.83yrs

Tenure

US$7,405,794

Compensation

Mr. Michael A. Colglazier is the Chief Executive Officer and Director at Virgin Galactic Holdings, Inc. since July 20, 2020 and serves as its President since February 2021. Mr. Colglazier joins Virgin Gala...

CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD7.41M) is above average for companies of similar size in the US market ($USD5.44M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: SPCE's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.

Board Members

Experienced Board: SPCE's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31