Should you buy Aspen Aerogels stock? (August 2024)

Published first at https://www.3minutebreakdowns.com Aspen Aerogels stock analysis. Ticker: $ASPN Aspen Aerogels, ticker symbol ASPN has developed a thin aerogel barrier that can be used in battery packs for electric vehicles. The material prevents thermal runaway, and stops batteries from catching on fire. At the current price, Aspen has a market cap of 1.4 billion dollars and the enterprise value is roughly the same. Fundamentally, this company doesn’t look like much. It’s valued at over 5 times revenue despite sharp losses and negative free cash flow. Even adjusted metrics are incredibly slim. However, investing is about the future not the past and Aspen Aerogels is starting to look interesting. The company is winning new contracts with automakers like Porsche and last quarter, management significantly increased its outlook. Revenue guidance was increased 9% to over 380 million and adjusted ebitda guidance almost doubled to over $55 million. Looking further out, the company thinks it can get to over 650 million in sales and when you take that guidance into consideration, the stock starts to look cheap. Based on 35% margins the valuation drops to under 10 times EBITDA. #stocks #investing #stockanalysis #3mb