Intuitive Machines: The Stock Goes To The Moon Ahead Of Its Tech

Elen11

Back erstwhile I was increasing up, I watched Neil Armstrong's satellite landing signaling connected a loop conscionable because nan thought of stepping connected nan satellite blew my mind. Little did I cognize that nan satellite landing was 1 of nan top achievements of humankind ever. Growing up, I ne'er thought location would beryllium a time erstwhile mean citizens could research space, but it seems for illustration nan world is inching person to achieving this feat aided by nan commercialization of nan abstraction industry. Virgin Galactic Holdings, Inc. (SPCE) and Blue Origin person made dependable advancement successful caller years, including nan historical achievements of sending Sir Richard Branson and Jeff Bezos to abstraction successful 2021, and SpaceX's advancement cannot beryllium forgotten either. At a clip erstwhile abstraction exploration is opening up caller business verticals, Intuitive Machines, Inc. (NASDAQ:LUNR), a institution that is focused connected nan lunar economy, made its Nasdaq debut connected February 14 by successfully completing a merger pinch SPAC Inflection Point Acquisition. Yesterday, Intuitive Machines banal skyrocketed much than 250%, drafting nan attraction of galore investors to nan company.

Intuitive Machines; The Business

The institution operates arsenic an infrastructure services supplier to nan booming abstraction exploration manufacture and intends to return marketplace stock successful nan lunar economy, a word utilized to place economical activities associated pinch nan moon. The institution operates successful 4 main business segments.

1. Lunar Access Services.
2. Orbital Services.
3. Lunar Data Services.
4. Space Products and Infrastructure.

Source: Company filings

Looking astatine nan scope of technological solutions offered by nan company, 1 mightiness falsely presume that Intuitive is still astatine nan improvement shape of its business erstwhile successful reality, nan institution has already secured respective contracts and agreements to connection these services.

For its Lunar Access Services, nan institution has secured 3 contracts to day pinch a worth of $317 million. The company's Nova-C lander will complete nan IM-1 ngo by landing connected nan lunar surface, which would go nan first U.S. conveyance to onshore connected nan lunar aboveground since 1972. IM-2, a follow-up mission, is expected to onshore astatine nan South Pole of nan moon, which would make it nan first-ever man-made entity to onshore astatine nan South Pole of nan moon.

The company's Orbital Services conception has besides gained traction precocious pinch Intuitive signing a commercialized RPOC statement pinch Axiom Space worthy $6 million. The company, astatine nan clip of filing its registration document precocious past year, was successful talks to unafraid ridesharing contracts for IM-2 and IM-3 worthy $18.45 million.

Based connected nan worth of nan contracts nan institution has already secured and nan caller opportunities that person opened up arsenic a consequence of its collaboration pinch authorities agencies specified arsenic NASA and nan Department of Defense, nan institution plans to bring $760 cardinal successful gross successful 2024 against astir $50 cardinal successful gross successful nan first 9 months of 2022.

Exhibit 1: Business units overview pinch gross projections

Investor presentation

Source: Investor presentation

The company's gross grew from $8 cardinal successful 2018 to $73 cardinal successful 2021 aided by nan occurrence of its Lunar Access Services conception wherever nan institution secured contracts. Intuitive is yet to bring successful immoderate gross from its Orbital Services and Data Services segments, but expects to make gross from these 2 business units starting successful 2023.

The beneath array summarizes nan contracts secured and pursued by nan company.

Exhibit 2: Contract visibility

Investor presentation

Source: Investor presentation

From an manufacture perspective, Intuitive is focused connected 3 superior extremity markets.

1. Space exploration.
2. National information space.
3. Commercial outer services.

The institution estimates that these extremity markets correspond complete $175 cardinal successful yearly spending.

The Competent Management Team

Investing successful young companies pinch nary way grounds of shareholder worth creation carries important risks. However, connected nan different end, location are handsome rewards for those investors who stake connected young companies that spell connected to go successful successful nan agelong run. One measurement to mitigate nan risks associated pinch investing successful these types of companies is to measure nan competency of nan guidance team. Intuitive Machines is led by a squad of highly competent executives pinch decades of manufacture experience.

Kam Ghaffarian, nan laminitis of Axiom Space, is besides a co-founder of Intuitive Machines and serves arsenic nan Executive Chairman arsenic well. Steve Altemus is nan President and CEO of nan institution - he has been since Intuitive's founding successful 2013 - and he served arsenic nan Deputy Director of NASA, Johnson Space Center earlier joining Intuitive Machines.

Exhibit 3: Management team

Investor presentation

Source: Investor presentation

The institution has surely made nan correct moves successful attracting top-tier talent which could beryllium a catalyst for maturation successful nan future.

The Opportunity

NASA is going backmost to nan moon. For galore years, abstraction exploration centered astir Mars, but NASA has a renewed liking successful exploring nan satellite and processing caller technologies to nonstop humans to nan moon. NASA Artemis program was launched to execute these objectives, and nan first shape of nan program, NASA Artemis I, was completed successful December past twelvemonth pinch an uncrewed formation trial of nan Space Launch System and nan Orion spacecraft astir nan moon. NASA, dissimilar nan Apollo ngo successful 1969, plans to usage nan Artemis programme to build an ongoing quality beingness connected nan lunar surface. One different quality this clip astir is that NASA is collaborating pinch some authorities and backstage companies to execute this goal, which opens caller opportunities for abstraction companies.

Another catalyst for nan abstraction exploration manufacture is nan rising tensions betwixt nan U.S. and China. The 2 economical superpowers person been progressive successful a tit-for-tat waste and acquisition warfare for a fewer years now, and it seems for illustration these tensions will escalate into a abstraction title arsenic well. In 2019, China successfully landed a spacecraft connected nan satellite and landed a rover connected Mars successful 2021, making it nan only different federation down nan U.S. to onshore a conveyance connected Mars. China has besides built a abstraction position to rival nan International Space Station. With China gaining traction heavy and fast, nan U.S. was speedy to shape Artemis Accords, an confederation that seeks to research abstraction peacefully.

Exhibit 4: Members of Artemis Accords

U.S. Department of State

Source: U.S. Department of State

The ongoing abstraction title betwixt nan U.S. and China is apt to stitchery gait successful nan coming years and to summation an edge, authorities agencies are apt to collaborate pinch backstage abstraction companies. This is bully news for nan abstraction exploration industry.

According to McKinsey, nan maturation of nan abstraction system will enable nan world to conflict ambiance change, amended nan level of nutrient information worldwide, and thief governments negociate information threats better. With technological advancements making dependable advancement successful enabling mankind to research never-before-seen territories, nan manufacture could spot explosive maturation successful nan decades ahead.

Takeaway

I don't often constitute astir aliases analyse companies pinch specified a short way record, but I was drawn to Intuitive Machines because of nan unsocial manufacture nan institution operates in. I americium not convinced of investing successful nan institution yet, but I surely judge Intuitive is worthy monitoring intimately because of its patient narration pinch regulators, first-mover advantages successful galore aspects of nan lunar economy, nan abstraction title betwixt nan U.S. and China, and nan competent guidance squad starring nan company.

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