Aerospace company Astra Space, Inc. (ASTR) engages in designing, testing, launching, and operating space products and services. The company also offers designing and testing of propulsion modules that enable satellites to orbit in space.

This month, ASTR’s mission of sending tiny storm-monitoring NASA satellites to orbit failed after an early second-stage booster engine shut down. This was the company’s second failed mission this year. On June 13, during mid-day trading, ASTR’s stock plunged 23% on the news.

ASTR’s stock has declined 78.4% year-to-date and 81.9% over the past six months to close its last trading session at $1.50. It is trading 2.7% higher than its 52-week low of $1.46.

Weak Bottom Line

For the fiscal first quarter ended March 31, ASTR’s adjusted net loss increased 237.5% year-over-year to $50.15 million. Operating loss rose 250% from the prior-year quarter to $86.28 million. Adjusted EBITDA came in at a negative $47.48 million, down 253.4% from the same period the prior year.

Stretched Valuation

In terms of its forward EV/Sales, ASTR is trading at 7.53x, 377.1% higher than the industry average of 1.58x. The stock’s forward Price/Sales multiple of 19.90 is 1,577% higher than the industry average of 1.19.

Negative Profit Margins

ASTR’s trailing-12-month gross profit margin of a negative 181.62% compares to the positive industry average of 29.51%. The stock’s trailing-12-month ROTC and ROA of a negative 59.20% and 41.94% compare to the respective industry averages of 7.03% and 5.19%.

POWR Ratings Reflect Bleak Prospects

ASTR’s POWR Ratings reflect this bleak outlook. The stock has an overall F rating, equating to a Strong Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

ASTR has a Growth and Value grade of D in sync with its bleak bottom line in the last reported quarter and stretched valuation.

The stock also has an F grade for Quality, consistent with its negative profitability.

In the 31-stock Airlines industry, it is ranked #30. The industry is rated F.

Click here to see the additional POWR Ratings for ASTR (Momentum, Stability, and Sentiment).

View all the top stocks in the Airlines industry here.

Bottom Line

The failed space mission is expected to keep ASTR under pressure. On top of it, its bleak financials are concerning. Analysts expect the stock’s EPS to remain negative at least until the fiscal year 2023, so the stock is best avoided now.

How Does Astra Space, Inc. (ASTR) Stack Up Against its Peers?

While ASTR has an overall POWR Rating of F, one might consider looking at its industry peers, Air France-KLM SA (AFLYY) and Deutsche Lufthansa AG (DLAKY), which have an overall B (Buy) rating.

ASTR shares rose $0.01 (+0.72%) in after-hours trading Monday. Year-to-date, ASTR has declined -79.94%, versus a -17.58% rise in the benchmark S&P 500 index during the same period.

About the Author: Anushka Dutta

Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...

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