Assessing Satellogic (SATL) Valuation After Multi Million Dollar Earth Observation Contract Win

Satellogic (SATL) shares are in focus after the company announced a seven figure agreement with a customer that wants continuous, high frequency Earth observation coverage across a broad set of priority sites. See our latest analysis for Satellogic. The agreement comes after a volatile period for Satellogic, with a 7 day share price return of 53.57% and 30 day share price return of 46.83%, contrasting with a 90 day share price return decline of 11.21% and a 3 year total shareholder return decline of 23.60%. This suggests short term momentum has picked up recently while longer term holders have experienced weaker results. If this kind of contract win has caught your attention, it could be worth widening your radar to other space related names and defense exposed players through aerospace and defense stocks. With Satellogic posting a 54% 7 day return and a seven figure Earth observation contract now in the bag, the key question is whether the current US$3.01 share price still leaves upside or if the market is already pricing in future growth. Price-to-Sales of 27.8x: Is it justified? Satellogic's current valuation on a P/S basis sits far above peers, even with the share price at US$3.01 after the recent contract news. The P/S ratio compares the company's market value to its revenue and is often used for businesses that are not yet profitable. For Satellogic, the multiple cited is 27.8x, which is flagged as expensive relative to both a specific peer group at 3.6x and the broader US Aerospace & Defense industry at 3.7x. This kind of gap suggests the market is paying a much higher price for each dollar of Satellogic's sales than for other companies in the same space. With SATL still unprofitable, earnings based measures are not available, so the focus falls on sales and what investors might be expecting those sales to become over time. Compared to industry, the statements are clear. SATL is described as expensive based on its 27.8x P/S ratio against the US Aerospace & Defense average of 3.7x and a peer average of 3.6x. That is a substantial premium, which leaves less room for error if future revenue or margin outcomes differ from what buyers of the stock are currently paying for. See what the numbers say about this price — find out in our valuation breakdown. Result: Price-to-Sales of 27.8x (OVERVALUED) However, there are clear pressure points here, including ongoing net losses of US$106.169 million on US$14.684 million in revenue, as well as the risk of high expectations unwinding. Find out about the key risks to this Satellogic narrative. Build Your Own Satellogic Narrative If you see the numbers differently or prefer to weigh the data yourself, you can build a fresh Satellogic story in just a few minutes, starting with Do it your way. A great starting point for your Satellogic research is our analysis highlighting 4 important warning signs that could impact your investment decision. Looking for more investment ideas? If Satellogic has sharpened your interest, do not stop here. Use the screener to line up a wider watchlist of potential opportunities worth your time. Spot potential bargains by scanning these 879 undervalued stocks based on cash flows that the market might be pricing too cautiously based on their cash flow profile and fundamentals. Ride long term themes by reviewing these 28 AI penny stocks that are tied to advances in artificial intelligence and related technologies. Strengthen your income focus by checking out these 12 dividend stocks with yields > 3% that offer yields above 3% alongside stock market exposure. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.