While much has been written on Joby, Archer, Vertical Aerospace and more recently Eve about their Stock Market long-term hold investment opportunities, there is one share that lies under the radar which some believe is a cut above the rest.
Tarik Pierce, founder and CEO of financial website, Investor Trip, who is a top ranked investor on Tip Ranks with a 70 percent success rate of profitable trades and a 4.8 star rating, believes not only will eVTOL stocks “be huge” in the future, but that Blade Air Mobility (BLDE) is an integral one to buy for your portfolio. Pierce’s investment strategy consists of investing in growth companies “that he loves and understands.” He believes this share “could produce 10x gains over the next few years.”
Blade is a global urban air mobility platform with its HQ in New York, USA. Founded in 2014, it went public in May, 2021 through a SPAC merger with Experience Investment Corp.
Its platform allows passengers, via a 3rd party app, to primarily book short-distance helicopter flights throughout the U.S to avoid congested ground traffic and save time. Think Uber for helicopters. Blade can transform a highly congested 2‑hour drive in NYC to a 5‑minute helicopter trip.
The company is able to provide flights from Manhattan to JFK for USD195 as well as an integrated service. This price is cheaper than calling an Uber black. You can book the flight 20 minutes before takeoff, significantly increasing efficiency and flexibility for customers. Apart from booking, the mobile app also offers, scheduling, communication and tracking. Blade provides private terminals and lounges for customers as well as baggage handling and increased security.
While Blade is consistently growing revenue year-on-year (YoY), the really exciting news is that it plans to expand with the addition of an all-electric, carbon-neutral electric aircraft fleet during 2024. Its primary future focus is on EVA (electric vertical aircraft).
In preparation, Blade has gone on a spending spree since going public and made five acquisitions.
: Trinity Air Medical, a multi-modal organ logistics and transportation company, to expand Blade’s present MediMobility business, which has been growing over 60 percent YoY. By replacing ambulances with helicopters, this prepares the next transition in a few years to eVTOLs, where most hospitals already have existing landing pads.
: Bought Helijet’s scheduled passenger business in Canada. This allows Blade to on-board more customers and have access to passenger terminals at conveniently located heliports in Canada, which allows them to increase their infrastructure footprint.
: Acquired three Europe-based air mobility operators Monacair SAM, Héli Sécurité and another undisclosed leading helicopter operator in the South of France. The acquisition enables Blade to create branded passenger terminals at over 10 airports, heliports and vertiports that already exist or are under development throughout Europe.
Blade earned USD67.2 million in revenue (up 156 percent YoY) in 2021 and turned a small profit of USD770,000 in Q4 ’21. This was followed with its Q1 2022 report last month that shows an increasingly rich vein of growth. The company reported revenue of USD26.6 million, up 187 percent YoY from USD9.3 million. MediMobility organ transport revenues increased 186 percent YoY from USD7.7 million to USD22.1 million. Short distance revenues increased 300 percent YoY from USD1.1 million to USD4.4 million.
As Blade is investing heavily in expansion, net losses not surprisingly, increased to USD11 compared to USD 4.2 million from the prior year, while operating cash flow went from negative USD0.6 million to negative USD10 million. Although, the company ended the quarter with a strong balance sheet of USD269 million in cash and only USD960 thousand in debt. The company expects to reach USD825 million in revenue by 2026, providing a conservative valuation of around USD8-10 billion within the next 4 years.
The company currently trades at an attractive price to sales ratio of around 7, which is well below many growth stocks, at present.
While the share price has fallen significantly in recent months like all its eVTOL-related brethren (-43.78 percent in the past 6 months) and presently trades at USD5.29 (June 15th), for the brave this is a cheap and underrated stock to buy.
Unlike Joby, Archer, Lilium, Vertical Aerospace Eve etc.. Blade Air Mobility is already attracting serious revenue streams. Moving in to the EVA market come 2024 is the cherry on top, where the company’s transition from helicopters to eVTOLs is being prepared and, most importantly, much of its infrastructure is already laid out where existing heliports transform into vertiports. Of course, the transition’s success relies on the all-important basis that some eVTOL companies will have gained full certification by then.
This is an exciting stock to consider for your portfolio.
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(Pics: Blade Air Mobility)