Maritime Launch Services Inc. operates as a commercial space company in Nova Scotia. It is developing Spaceport Nova Scotia, a launch site that provides satellite delivery services, which enables clients in the commercial space transportation industry to place their satellites into low-earth orbit. The company is headquartered in Halifax, Canada.

Canada

Maritime Launch Services Inc.

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. 

MAXQ.NE reported revenue of CAD 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 41% from FY23 to CAD -0.02.

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 27ppts over six months and grown 11ppts slower 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 neutral.

Maritime Launch Services Inc. reported a return on equity (RoE) of 3472.6% in the last 12 months, up from -1458.3% in FY22. 

In the last 12 months, the return on capital employed (RoCE) grew to 36643.4%, above the peers. 

Another important profitability metric, return on assets (RoA), amounted to -48.3% in the last 12 months, an increase from -61.6% in FY22. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -16.1 in the past several years. This ratio implies a fragile 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.

MAXQ.NE has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is very high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, negligible return on capital, excessive margin volatility, poor working capital management, inadequate interest coverage, poor cash flow generation, and an unfavourable capital structure.

In highly turbulent market conditions, MAXQ.NE 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, MAXQ.NE 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 considerably underpriced compared to similar stocks. 

Maritime Launch Services Inc.

CA$ 0.04

3

Maritime Launch Services Inc.

CA$ 0.04

3

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Profitability factor

Risk / Profitability

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Profitability factor

CA$ 0.04

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