Aspen Aerogels: There Are Reasons To Be Careful But It's So Cheap

(9min)

Summary

  • The company has recently taken on significant debt to finance its Statesboro plant.
  • Stock were issued to improve the balance. The market didn't like but could make sense if it's compensated with growth thanks to the new Statesboro Plant.
  • Q3 2024 earnings showed 92.93% YoY revenue growth and improved margins, but flat quarter-over-quarter sales led to a 28% stock decline.
  • It's currently trading at 12 times forward EV/EBITDA and only 2.5 EV/Sales despite its revenue growth of almost 90%, so I think it's cheap.

Electric Car Charging

3alexd

Investment thesis

I previously covered Aspen Aerogels (NYSE:ASPN), a company that produces thermal insulation materials that have applications in the oil and gas and electric vehicle industries.

In that article I delved into the company's positive points, applications and

This article was written by

My name is María Fernanda and I'm currently studying an MBA. My inspiration investors are Warren Buffett, Peter Lynch and Terry Smith, so I look for quality companies at a reasonable valuation. I believe that, in the long term, fundamentals are what drive the share price, so I look to predict what a business's earnings per share will do.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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