Sidus Space, Inc.

Sidus Space, Inc. (NASDAQ: SIDU) is a corporation that provides space as a service. Commercial satellite design, manufacture, launch, and data collecting are the company's primary goals. It serves retail space, aerospace, defence, underwater marine customers, and other commercial and government clients. Multidisciplinary design engineering, precision CNC machining and fabrication, Swiss screw machining, AWS certified welding and fabrication, electrical and electronic assemblies, wire cable harness fabrication, three-dimensional (3D) composite and metal printing, satellite manufacturing, satellite payload integration and operations support, satellite deployment, and microgravity testing are among the company's services.

Key Highlights

• The company reported YoY decline of 22.05% in revenue to USD 1.41 million in FY21 (ended December 31, 2021) compared to USD 1.81 million in FY20.
• In FY21, SIDU net loss increased to USD 3.75 million from USD 1.54 million in FY20.  
• As of December 31, 2021, the company had cash and cash equivalents of USD 13.71 million and total debt of USD 3.62 million.
• SIDU’s net margin for FY20 was -85.4%, significantly lower than the industry median of 5.6%.
• SIDU's FY20 cash cycle of 7.1 days is significantly lower than the industry median of 149 days.
• On May 06, 2022, SIDU and Dhruva Space Private Limited have inked a memorandum of understanding to advance the commercialization of new and innovative space technology and services. Sidus Space and Dhruva Space will explore collaborations to support the missions of India's and the United States' space programmes through strategic alignment and value-add agreements related to satellites, Mission Operations Centers, Ground Stations, space-related hardware and software, and other technologies as part of this partnership.
• Stock is currently trading below its crucial short-term (50-day) SMA support level, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 1.92 to USD 29.70.

Conclusion: Considering the company’s weak fundamentals, recent collaboration with Dhruva Space Private limited, technical indicators, and associated risks. We recommend a "Watch" rating on the stock at the current price of USD 2.15, down 26.59%, as of May 09, 2022, at 11:53 AM PDT.

Technical Price Chart (as on May 09, 2022, at 11:53 AM PDT). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Closing price as of May 09, 2022, at 11:53 AM PDT

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.