The average target price of EVTL is 10 and suggests 86% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 15.4. This translates into 175% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 2.1. This is equivalent to 63% downside potential in the worst case. 

Vertical Aerospace Ltd. engages in designing, manufacturing, and selling electric aircraft. It offers VX4, an electric vertical take-off and landing vehicle. The company was founded in 2016 and is headquartered in Bristol, the United Kingdom.

Vertical Aerospace Ltd.

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

EVTL reported revenue of GBP 0mn in the last 12 months, down 0% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 966% from FY23 to GBP -33.59. Market expects EPS to reach GBP -3.13 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 13ppts over six months and grown 45ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

Vertical Aerospace Ltd. reported a return on equity (RoE) of 284.5% in the last 12 months, up from 282.4% in FY23. The market consensus projects an RoE of 108.9% in FY24, again ahead of its peers. 

Another important profitability metric, return on assets (RoA), amounted to -1185.3% in the last 12 months, a decrease from -50.9% in FY23. The market analysts predict that RoA will be -64.5% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 365.5%, above the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 13.3 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

EVTL has below average trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is very unstable and is unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, negligible return on capital, poor working capital management, inadequate interest coverage, and poor cash flow generation. We note low margin volatility and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, EVTL is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, EVTL is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is overpriced compared to similar stocks. In particular, the stock is overpriced on P/E. 

Vertical Aerospace Ltd.

$ 5.36

3

Vertical Aerospace Ltd.

$ 5.36

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 5.36

About

About

Vertical Aerospace Ltd.

$ 5.36

3

Vertical Aerospace Ltd.

$ 5.36

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 5.36

About

About

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