“Luxembourg’s parliament has passed a law that makes it the first European Union country to offer legal certainty that asteroid mining companies get to keep what they find in space. The existing international space law standard, the Outer Space Treaty of 1967, crucially doesn’t make it clear if private companies own resources (minerals, water and whatever else is out there) they would stumble upon. The United States Congress passed a space mining law, the U.S. Commercial Space Launch Competitiveness Act, in 2015 that made this ability explicit….[A] spokesman claimed that the difference between the US space mining law and the Luxembourg space mining law is that in the US law, a majority of a company’s stakeholders must be in the US, while the Luxembourg law places no restrictions on stakeholder locations.” ~Andrew Silver, July 14, 2017
The companies listed below are traded on a variety of European stock exchanges. It is possible to buy many of these companies on U.S. exchanges as well, either in the form of over-the-counter (“OTC”) foreign securities (whose ticker symbols frequently end in an “F”), and/or in the form of “American Depository Receipts” (aka ADRs, whose ticker symbols frequently end in a “Y”.) According to Investopedia, “An American depositary receipt (ADR) is a negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas, and holders of ADRs realize any dividends and capital gains in U.S. dollars, but dividend payments in euros [or other currencies] are converted to U.S. dollars, net of conversion expenses and foreign taxes. ADRs are listed on either the NYSE, AMEX or Nasdaq but they are also sold OTC.” In essence, an ADR “certificate” provides a U.S. based investor the benefits (and risks) of owning a security traded on a foreign exchange, without having to open an overseas trading account or convert currencies necessary to buy the underlying foreign security.
| Company | Headquarters | Ticker / Exchange | Industry / Sector | Solari Classification | Market Cap ($M) | LTM Revenue ($M) | LTM Net Income ($M) | Trailing P/E | Forward P/E | Dividend Yield | YTD Return | 1-Year Return | 3-Year Return | 5-Year Return | 10-Year Return |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Airbus Group SE | Leiden, Netherlands | AIR / Paris | Industrials / Aerospace & Defense | Rockets and Satellites | 90,670 | 81,256 | 3,496 | 27.5X | 21.7X | 1.58% | 20.0% | 48.5% | 20.4% | 18.5% | 18.4% |
| BAE Systems Plc | Farnborough, UK | BA / London | Industrials / Aerospace & Defense | Spacecraft Components | 27,223 | 25,526 | 1,190 | 18.6X | 14.4X | 3.52% | 11.8% | -3.5% | 2.7% | 13.1% | 4.1% |
| Eutelsat Communications | Paris, France | ETL / Paris | Technology / Communication Equipment | Satellite Communications | 5,014 | 1,728 | 385 | 12.9X | 12.2X | 6.68% | -5.1% | -1.0% | -9.2% | NA | NA |
| GomSpace Group AB | Stockholm, Sweden | GOMX / Nasdaq FNP | Technology / Semiconductors | Satellites and Components | 200 | 11 | -6 | NM | NM | NA | 1.1% | NA | NA | NA | NA |
| Indra Sistemas SA ADR | Madrid, Spain | IDR / Madrid | Technology / Software - Application | Custom Software & Mission Support | 2,370 | 3,664 | 154 | 16.2X | 17.3X | NA | -1.3% | -2.5% | 4.4% | 2.6% | NA |
| Inmarsat PLC | London, UK | ISAT / London | Communication Svcs / Telecom Services | Satellite Communications | 2,341 | 1,400 | 182 | 12.0X | 13.6X | 6.49% | -20.6% | -49.1% | -22.6% | -6.3% | NA |
| Intelsat | Luxembourg, Luxembourg | I / NYSE | Communication Svcs / Telecom Services | Satellite Communications | 1,236 | 2,150 | -180 | NM | NM | NA | 167.8% | -5.6% | -13.3% | NA | NA |
| Leonardo SpA | Rome, Italy | LDO / Milan | Industrials / Aerospace & Defense | Satellites and Components | 6,807 | 14,028 | 333 | 14.7X | 15.4X | NA | -0.8% | -24.9% | -2.1% | 18.7% | NA |
| OHB SE | Bremen, Germany | OHB / Frankfurt | Industrials / Aerospace & Defense | Rockets and Satellites | 922 | 1,046 | 34 | 30.4X | NA | 0.84% | 6.5% | 168.6% | 28.3% | NA | NA |
| QinetiQ Group PLC | Farnborough, UK | QQ / London | Industrials / Aerospace & Defense | Engineering & Testing Services | 1,787 | 1,128 | 192 | 10.2X | 13.4X | 2.56% | 2.4% | -11.0% | 2.5% | 4.0% | NA |
| Safran SA | Paris, France | SAF / Paris | Industrials / Aerospace & Defense | Rockets and Satellites | 47,793 | 20,445 | 3,270 | 8.8X | 20.4X | 0.84% | 6.5% | 34.1% | 15.2% | 19.4% | NA |
| SciSys PLC | Wiltshire, UK | SSY / London | Technology / Info Tech Services | Custom Software & Mission Support | 64 | 80 | 5 | 13.9X | 13.2X | 1.29% | 35.5% | 60.1% | 25.2% | 18.5% | 14.4% |
| SES SA | Luxembourg | SESG / Paris | Consumer Cyclical / Broadcasting - TV | Satellite Communications | 8,120 | 2,477 | 725 | 9.6X | 15.7X | 11.55% | -10.8% | -44.0% | -23.5% | -6.8% | 3.0% |
| Thales Group | Neuilly-sur-Seine, France | HO / Paris | Industrials / Aerospace & Defense | Satellites and Components | 27,037 | 19,223 | 1,195 | 25.0X | 19.9X | 1.47% | 26.9% | 25.2% | 31.8% | 25.0% | NA |
Click on the name of the company to view its website. Click on the stock symbol to see information on it at Yahoo Finance.
- Airbus Group SE (AIR.PA) – Airbus Group SE is a European multinational aerospace and defense corporation headquartered in Leiden, Netherlands. Airbus is a commercial aircraft manufacturer. It has three other divisions focused on helicopters, defense and space. Its equity is primarily traded under the symbol AIR on the Paris Stock Exchange. It also trades as AIR on the Xetra Exchange in Frankfort. In the U.S. and OTC equity (EADSF) and ADR (EADSY) show minimal trading activity domestically.
- BAE Systems Plc (BA.L) – BAE Systems is the United Kingdom’s largest defense contractor; however, 75% of its revenue is derived outside of the U.K. BAE’s space products are primarily components for various types of spacecraft. Its equity is primarily traded under the symbol BA on the London Stock Exchange. In the U.S., BAE trades in the form of an OTC equity (BAESF) and ADR (BAESY) with meaningful trading volume.
- Eutelsat Communications S.A. (ETL.PA) – Eutelsat is a European satellite operator providing communications coverage over the entire European continent, the Middle East, Africa, Asia, and the Americas. It currently operates 38 satellites that provide video, data, and broadband to up to 150 countries, and is one of the world’s three leading satellite operators in terms of revenues. Its equity is primarily traded under the symbol ETL on the Paris Stock Exchange, but also has an OTC-listed equity in the U.S. (EUTLF) as well as a U.S.-listed ADR (ETCMY) which has less trading activity domestically.
- GomSpace Group AB (GOMX.ST) – GomSpace Group AB develops and commercializes nanosatellites and cubesatellites as well as related satellite components and services. Its stock is traded on the Nasdaq First North Premier exchange, which is a Nordic exchange focused on small growth companies.
- Indra Sistemas, S.A. (IDR.MC) – Headquartered in Madrid, Spain, Indra Sistemas is a global consulting and technology company focused on industries such as Energy and Industry, Financial Services, Telecom & Media, Public Sector & Healthcare, Transport & Traffic and Security & Defense. Indra’s space activities are largely centered around satellite communications systems used to support armed forces and the operations of unmanned aerial vehicles. Its equity is primarily traded under the symbol IDR on the Madrid Stock Exchange, but also under a U.S.-listed ADR (ISMAY) which has less trading activity domestically.
- Inmarsat Plc (ISAT.L) – Inmarsat is a British satellite telecommunications company, offering global mobile services. It provides telephone and data services to users worldwide, via portable or mobile terminals which communicate with ground stations through twelve geostationary telecommunications satellites. Inmarsat’s network provides communications services to a range of governments, aid agencies, media outlets and businesses with a need to communicate in remote regions or where there is no reliable terrestrial network. Its equity is primarily traded under the symbol ISAT on the London Stock Exchange, but also has an OTC-listed equity in the U.S. (IMASF) as well as a U.S.-listed ADR (IMASY) which has less trading activity domestically.
- Intelsat (I) – Intelsat is a Luxembourg-based satellite telecommunications. It trades on the New York Stock Exchange.
- Leonardo S.p.A. (LDO.MI) – Leonardo S.p.A. is defense contractor headquartered in Rome, Italy. It produces helicopters, aircraft components, electrical systems, artillery and weapons, security and information systems and products for use in space. Its space related activities are conducted through two joint ventures with Thales Leonardo S.p.A. owns 33% of each: Telespazio and Thales Alenia Space. Through these JVs and its own Airborne & Space Systems Division, Leonardo provides everything from individual components and sensors all the way up to complete satellites and the management and operations of orbiting infrastructures. Its equity is primarily traded under the symbol LDO on the Milan Stock Exchange, but it also has an OTC-listed equity in the U.S. (FINMF) as well as a U.S.-listed ADR (FINMY) which has less trading activity domestically.
- OHB SE (OHB.DE) – Headquartered in Bremen, Germany, OHB operates two business segments. Its Space Systems segment develops and produces low earth orbit and geostationary satellites for navigation, scientific, communication, and earth observation purposes. Its Aerospace and Industrial Products segment manufactures products for aviation, space travel, and electronic data transmission. It produces approximately 10% of the hardware for Europe’s ARIANE 5 rocket program, including booster casings and tank domes for the central and uppers stages. Its equity is primarily traded under the symbol OHB on the Xetra Exchange in Frankfurt, but it also has an OTC-listed equity in the U.S. (OHBTF) which has less trading activity domestically.
- QinetiQ Group Plc (QQ.L) – QinetiQ is a science and engineering company headquartered in Farnborough, UK, and focused on the defense, security, and aerospace markets. Its space activities include systems integration for satellites, developing technologies for docking and berthing of space vehicles and modules, providing computerized security systems, and developing custom avionics for space missions. QinetiQ’s equity is primarily traded under the symbol QQ on the London Stock Exchange, but it also has an OTC-listed equity in the U.S. (QNTQF) as well as a U.S.-listed ADR (QNTQY) which has less trading activity domestically.
- Safran SA (SAF.PA) – Safran is a defense contractor headquartered in Paris with a focus on aircraft propulsion, defense, security and space. Its space activities are focused on rocket and propulsion systems as well as satellites. Safran and Airbus Group formed a 50/50 joint venture, called ArianeGroup, which is the prime contractor for the cryogenic propulsion system on Europe’s Ariane 5 launch rocket. Safran’s equity is primarily traded under the symbol SAF on the Euronext Stock Exchange in Paris, but it also has an OTC-listed equity in the U.S. (SAFRF) as well as a US-listed ADR (SAFRY) which have less trading activity domestically.
- SciSys Plc (SSY.L) – SciSys is an IT solutions firm headquartered in Wiltshire, UK. SciSys develops information and communications solutions; e-business, web, and mobile applications; editorial solutions for newsrooms; and advanced technology for a variety of industries. SciSys’ space-related activities are focused on on-board systems on satellites, communcations with ground systems, mission control of satellite operations, and robotics and other automation solutions. SciSys’ equity is primarily traded under the symbol SSY on the London Stock Exchange.
- SES SA (SESG.PA) – SES owns and operates communications satellites used primarily to transmit television broadcasts. The majority of SES’ revenues are from the delivery of TV broadcasting to homes, but it also provides data transmission services for commercial enterprises and government agencies. SES is headquartered in Luxembourg and generates the majority of its revenue from Germany. SES’ equity is primarily traded under the symbol SESG on the Paris Stock Exchange, but it also has an OTC-listed equity in the U.S. (SGBAF) which has less trading activity domestically.
- Thales S.A. (HO.PA) – Thales is a French-based defense contractor focused on products and applications for aerospace, space, transportation, defense, security and other market-specific applications. Its space-related work is delivered primarily through its majority-owned Thales Alenia Space joint venture with Leonardo S.p.A. Thales’ equity is primarily traded under the symbol HO on the Paris Stock Exchange, but it also has an OTC-listed equity in the U.S. (THLEF) which has less trading activity domestically.
Footnotes
Sources: Morningstar, Yahoo Finance, Bloomberg, and company financial filings and annual reports.
Financial data is as of the most recent quarter available. For most, but not all, companies shown, this is December 31, 2017.
“LTM” stands for “Last Twelve Months” and represents one full year results of operations.
Market capitalization, price/earnings ratios, dividend yield and stock market returns are as of the close of business on April 24, 2018.
All amounts shown are in U.S. dollars. If it was necessary to convert any foreign companies’ results to U.S. dollars, the conversion rate as of April 25, 2018 was applied.
Disclaimer
Inclusion of companies on this list does not imply that Solari recommends these stocks for investment. Please consult your financial advisor and invest in a manner appropriate for your personal situation.
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