Aspen Aerogels Inc (ASPN, Financial) has recently caught the attention of investors with a notable surge in its stock price. Over the past week, the company's shares have experienced a 13.66% gain, while the past three months have seen an impressive 35.67% increase. This performance has brought the market capitalization of Aspen Aerogels to $1.02 billion, with the current stock price standing at $13.38. When compared to the GF Value of $12.71, the stock is currently deemed to be Fairly Valued, a significant improvement from its previous assessment as a Possible Value Trap, Think Twice, with a past GF Value of $11.55.
Introduction to Aspen Aerogels Inc
Aspen Aerogels Inc, operating within the construction industry, is a leading manufacturer of high-performance aerogel insulation. The company's products are utilized across various markets, including energy infrastructure, building materials, and electric vehicles. Aspen Aerogels is not only active in the U.S. but also has a significant international presence. The company's commitment to innovation is evident through its ongoing research and development efforts, which are supported by U.S. government agencies and other institutions. Its product lineup includes notable solutions such as Pyrogel XTE and Cryogel Z, catering to a diverse range of applications.
Assessing Aspen Aerogels' Profitability
Despite the recent positive momentum in stock price, Aspen Aerogels' Profitability Rank remains low at 2 out of 10. The company's Operating Margin is currently at -28.14%, which, while not ideal, is better than 5.81% of 1,634 companies in the same sector. The ROE (Return on Equity) stands at -14.51%, surpassing 11.37% of its peers. Similarly, the ROA (Return on Assets) is -9.56%, which is more favorable than 8.7% of competitors. Lastly, the ROIC (Return on Invested Capital) is at -16.63%, outperforming 4.93% of other companies in the industry.
Growth Prospects of Aspen Aerogels
Aspen Aerogels' Growth Rank is considerably higher at 7 out of 10. Despite a -7.50% 3-Year Revenue Growth Rate per Share and a -2.60% 5-Year Revenue Growth Rate per Share, the company's future looks promising with an estimated Total Revenue Growth Rate of 44.65% over the next 3 to 5 years, which is better than 99.47% of 190 companies. However, the 3-Year EPS without NRI Growth Rate is at -51.80%, and the 5-Year EPS without NRI Growth Rate is at -16.90%, indicating challenges in the past but potential for improvement moving forward.
Key Shareholders in Aspen Aerogels
Notable investors have maintained their stakes in Aspen Aerogels, demonstrating confidence in the company's trajectory. Chuck Royce (Trades, Portfolio) holds 1,719,083 shares, representing a 2.25% share percentage, while Steven Cohen (Trades, Portfolio) owns 575,233 shares, accounting for 0.82% of the company. These significant holdings by respected investors suggest a belief in the long-term value of Aspen Aerogels.
Competitive Landscape
When compared to its competitors, Aspen Aerogels stands out with its $1.02 billion market cap. Interface Inc (TILE, Financial) has a market cap of $748.417 million, Arlo Technologies Inc (ARLO, Financial) is valued at $829.893 million, and Latham Group Inc (SWIM, Financial) has a market cap of $312.711 million. Aspen Aerogels' recent stock performance and growth prospects position it favorably within the competitive landscape of the construction industry.
Conclusion
In summary, Aspen Aerogels Inc has experienced a significant stock price rally over the past three months, now considered Fairly Valued according to the GF Value. While the company's profitability metrics may raise concerns, its strong Growth Rank and optimistic revenue projections suggest potential for future success. The confidence shown by major holders like Chuck Royce (Trades, Portfolio) and Steven Cohen (Trades, Portfolio), coupled with a favorable comparison to its competitors, paints a promising picture for Aspen Aerogels as it continues to innovate and expand its market presence.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
