Vertical Aerospace Ltd (EVTL)EVTL

Vertical Aerospace Ltd. Overview:

Company Profile:

Background: Vertical Aerospace Ltd. is a British company developing and manufacturing electric vertical takeoff and landing (eVTOL) aircraft for the urban air mobility market. Founded in 2016 by Stephen Fitzpatrick, previously the CEO of Ovo Energy, it has offices in Bristol and London. They aim to offer a low-carbon and sustainable way to travel short distances in cities.

Core Business:

• Development and Manufacturing of eVTOL Aircraft: Their flagship product is the VA-X4 eVTOL aircraft, which can carry four passengers and a pilot for a range of 120 miles at speeds up to 150 mph. They also offer design, engineering, and certification services.
• Urban Air Mobility Services: Vertical plans to offer eVTOL-based urban air taxi services in markets such as London, Los Angeles, and other major cities. They are partnered with American Airlines and Virgin Atlantic for commercial launch in 2024/25.

Leadership and Structure:

• Stephen Fitzpatrick: CEO
• Mike Cervenka: CFO
• Michael Stroud: CTO
• Vertical Aerospace utilizes a traditional hierarchical structure with various departments for engineering, production, business development, finance, and legal.*

Top Products and Market Share:

Top Products:

• VA-X4 eVTOL Aircraft: This four-passenger vehicle is their main focus, with 1,350 pre-orders as of May 2023.
• VX4 eVTOL (Cargo): This unmanned variant for cargo transportation is also in development.

Market Share:

• eVTOL Market: As a new industry, reliable market share data is scarce. Vertical is considered a major player alongside Joby Aviation, Lilium, and Archer Aviation.
• Air Taxi Services: No data is available yet as the launch is planned for 2024/25.

Product Performance and Market Reception:

• VA-X4 Demonstrated successful test flights in 2022 and 2023.
• Gained significant pre-orders from major airlines and helicopter operators, demonstrating strong market interest.

Total Addressable Market (TAM):

• Estimated global eVTOL market in 2030 potentially reaches $500 billion.
• Urban Air Mobility services have a potential TAM of $1.5 trillion by 2040.

Financial Performance:

Financial Statements Analysis:

• Revenue and Profit: As of May 2023, they are pre-revenue with ongoing research and development costs.
• Net Income: Currently in the negative due to high investment and development spending.
• Profit Margin: Not applicable yet due to no revenue.
• EPS: No earnings per share available as the company is not publicly traded.

Cash Flow and Balance Sheet:

• Significant funding secured through PIPE (private investment in public equity): $200 million in 2023.
• Additional funds available through their SPAC merger.

Financial Performance Comparison:

• Year-over-year comparisons not applicable due to their early development stage.
• Direct comparisons with publicly traded competitors like Joby Aviation are limited due to different financial structures.

Dividends and Shareholder Returns:

Dividends:

• No dividends paid as a pre-revenue company.

Shareholder Returns:

• Performance of the SPAC they merged with cannot be directly attributed to Vertical Aerospace's performance.

Growth Trajectory:

Historical Growth:

• Rapidly growing company, with over 500 employees as of June 2023.
• Signed numerous pre-orders and secured significant funding.

Future Growth:

• Projected growth depends heavily on eVTOL market development and successful commercialization.
• Recent partnerships with leading airlines and helicopter operators indicate potential for significant future expansion.

Market Dynamics:

Industry Overview:

• eVTOL industry is in its nascent stage, with significant growth potential.
• Technological advancements and regulatory approvals are key factors for development.

Company Positioning:

• Vertical is well-positioned with its pre-orders, partnerships, and technology.
• Adaptability to market changes depends on securing necessary approvals and successfully scaling production.

Competitors:

• Joby Aviation (JOBY): Publicly traded competitor with similar eVTOL model and significant pre-orders.
• Lilium (LILM): German competitor with focus on five-seater aircraft.
• Archer Aviation (ACHR): American company with an eVTOL taxi program.
• EHang (EH): Chinese company with autonomous passenger drones already in operation.

Competitive Comparison:

• Vertical holds an advantage through partnerships with major airlines and established helicopter operators.
• Competing against larger companies with established market presence and technological expertise will be a challenge.

Potential Challenges and Opportunities:

Key Challenges:

• Certification and regulatory approvals for eVTOL aircraft.
• Technological advancement and innovation in a rapidly changing market.
• Scaling up production to meet demand.
• Competition from established and well-funded players.

Potential Opportunities:

• Fast-growing and potentially lucrative eVTOL market.
• Strategic partnerships offering collaboration and market access.
• Expanding into new markets and applications for their eVTOL technology.

Recent Acquisitions (Last 3 Years):

Vertical Aerospace Ltd. has not made any acquisitions in the last 3 years (as of June 2023).

AI-Based Fundamental Rating:

As of June 2023, Vertical Aerospace is not publicly traded; thus, a comprehensive AI-based fundamental rating is not available. However, considering their strong partnerships, pre-orders, and technological advancements, an AI-based rating could potentially be positive, reflecting their strong growth potential.

Sources:

• Vertical Aerospace Ltd. Website: https://vertical-aerospace.com/
• Investor Presentation - May 2023: https://vertical-aerospace.com/investors/
• TechCrunch: https://techcrunch.com/2023/06/14/vertical-aerospace-va-x4-evtol/
• The Guardian: https://www.theguardian.com/business/2023/jan/23/stephen-fitzpatrick-vertical-aerospace-electric-flying-taxis-evtol

Disclaimer:

This information is provided for general knowledge and informational purposes only, and does not constitute investment advice. It is essential to conduct your own due diligence and consult with a qualified financial advisor before making any investment decisions.