Virgin Galactic Holdings Inc (SPCE)

[Solar_Express]

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Balance Sheet and Cash Flow Analysis

Virgin Galactic is in a good financial situation for such an early-stage business. It is backed by multibillion-dollar holding company Virgin Group Ltd, as well as its founder, Richard Branson, and several institutional investors. Galactic is debt-free, but it has sizable short-term financial obligations of $7.2 million on its balance sheet.

The company has a small amount of cash on hand, at $48.4 million. That's dwarfed by a massive balance of marketable securities valued at $677.1 million, which Virgin Galactic acquired from Social Capital Hedosophia, the company it merged with to go public. The marketable securities are short-term treasuries held in a trust account, and the interest from these treasuries goes toward net income -- helping offset Galactic's net loss from operations.

Virgin Galactic had a net loss of $482,184 in the third quarter of 2019; this was based on an operating loss of $4.2 million and offset by interest income of $3.5 million and an unrealized marketable securities gain of $258,197. Operating losses are to be expected from a company in such an early stage of development. Again, meeting the goals for number of flights and tickets sold will be key to whether the company can generate its projected EBITDA in the future.

A moonshot stock

Virgin Galactic's management is setting some very lofty goals for revenue growth, and if they meet their targets, the stock could soar. The good news is that management seems to have its finances in order; its cash position is solid, debt is zero, and its $3.2 billion valuation leaves room for equity raises if needed. On top of this, Galactic's ownership of The Spaceship Company may give it an edge over competitors who don't design and manufacture their own aircraft.

But are there enough people able and willing to shell out $250,000 for a trip to space? Possibly

https://www.fool.com/investing/2020/01/24/virgin-galactic-does-this-moonshot-stock-have-a-pl.aspx

Latest Insider Activity Virgin Galactic Holdings, Inc See Chart: Upward Movement Prevails with Moderate Dips: Link

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