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TFSA Investors: Hold This Space Stock Forever

Maxar Technologies Inc (TSX:MAXR)(NYSE:MAXR) is a leading global provider of advanced space technology solutions for commercial and government markets, including satellites, Earth imagery, geospatial data and analytics.

Following the acquisition of DigitalGlobe in October 2017, Maxar operates with three operating segments: Space Systems, Imagery and Services.

Through these segments, Maxar provides a wide range of products and services, including communication satellites and satellite subsystems, space-based, ground-based and airborne surveillance and intelligence solutions, as well as high-resolution Earth imagery products and services.

Maxar’s established global customer base is served by approximately 6,400 employees operating from 31 locations in the United States, Canada, and internationally.

Maxar designs, manufactures and integrates communication and imaging satellites, satellite payloads and antenna subsystems, space-based and airborne surveillance solutions, robotic systems and associated ground infrastructure and support services.

Maxar’s principal customers in the Space Systems segment are government agencies worldwide as well as satellite operators and satellite manufacturers.

The company has a price to book ratio of 1.33 and market capitalization of 1.4 billion. Debt is aggressively used at Maxar Technologies as evidenced by a debt to equity ratio of 4.84. The company has below average performance metrics with an operating margin of 0.96% and a return on equity of (73.78)%.

The company is a leading supplier of direct-to-home television and radio broadcast satellites to commercial broadcast satellite operators. With over 45 Ka-band payloads fielded, the company is an industry leader in advanced high throughput multi-mission satellites for broadband internet services.

Maxar Technologies also offers low cost Earth observation satellite constellations for commercial and government applications. These low cost Earth observation satellites are being constructed at the company’s specialized facility in California dedicated to small satellite manufacturing. The company is the world’s largest independent commercial supplier of communication satellite antenna subsystems.

The company also provides advanced radio frequency and power electronics, as well as various digital solutions for inclusion in satellite payloads.

In select cases, the company offers complete payload solutions to emerging satellite prime contractors. The company is pursuing terrestrial applications for its robotics capabilities in the medical and nuclear fields and has expanded efforts to market Maxar’s robotics capability to the United States Government.

The company has won important earth observation constellation contracts and space robotics contracts in the United States. Maxar also offers a full range of multi-satellite ground stations to operate radar and optical surveillance satellites and to receive, process, distribute, archive and exploit imagery from those satellites.

The company participates in a highly competitive industry and is successful principally due to technical capabilities and engineering expertise, product reliability, cost and ability to meet delivery schedules.

The company’s major contracts are generally firm fixed price contracts, under which work performed and products shipped are paid for at a fixed price generally without adjustment for actual costs incurred.

Maxar relies on engineers and scientists with a range of skills and knowledge, as well as more specialized engineering skills related to the space business.

In summary, Maxar appears to be a great way for retail investors to gain exposure to the fast-growing space technology industry.


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Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. The Motley Fool recommends MAXAR TECHNOLOGIES LTD. Maxar Technologies is a recommendation of Stock Advisor Canada.

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