AJRD

Aerojet Rocketdyne Holdings, Inc.

Industrial/Transportation


Presented:02/15/2018
Price:$27.59
Cap:$2.04B
Current Price:$57.99
Cap:$4.56B

Presented

Date02/15/2018
Price$27.59
Market Cap$2.04B
Ent Value$2.81B
P/E Ratio33.44x
Book Value$2.16
Div Yield0%
Shares O/S73.90M
Ave Daily Vol770,900
Short Int16.13%

Current

Price$57.99
Market Cap$4.56B
Aerojet Rocketdyne Holdings, Inc. engages in the provision of innovative solutions in the field of aerospace and defense, as well as in the field of real estate. It operates through the Aerospace and Defense, and Real Estate segments. The Aerospace and Defense segment operates through the Aerojet Rocketdyne, Inc. in developing and manufacturing of aerospace and defense products and systems for the United States government, the National Aeronautics and Space Administration, major aerospace and defense prime contractors as well as portions of the commercial sector. The Real Estate segment operates through Easton Development Company, LLC in re-zoning, entitlement, sale, and leasing of excess real estate assets. The company was founded by William O'Neil on September 29, 1915 and is headquartered in El Segundo, CA.

Publicly traded companies mentioned herein: Aerojet Rocketdyne Holdings Inc (AJRD), Boeing Co (BA), Lockheed Martin Corp (LMT), Northrop Grumman Corp (NOC), Orbital ATK Inc (OA)

Highlights

The presenter is short shares of Aerojet Rocketdyne (AJRD), seeing mounting competitive pressure in the space launch segment, from private competitors like Blue Origin and SpaceX, as well as traditional competitors like Orbital ATK. He expects significant pricing pressure to come on top of share loss both to small satellite launches, and to new competitors within large contracts. There are also some short-term headwinds that could immediately pressure AJRD shares while these long-term, secular headwinds play out. By the presenter’s model, there is 20% - 25% downside to AJRD shares.

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Idea Discussion

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