Water Tower Research Publishes Initiation of Coverage Report on Unusual Machines, Inc., “US Certified Drone Parts Maker Looking to Leverage Its US Manufacturing”

February 6, 2024, ST. PETERSBURG, FL – Water Tower Research (www.watertowerresearch.com) has published an Initiation of Coverage Report on Unusual Machines, Inc. (NYSE AM: UMAC) titled, “US Certified Drone Parts Maker Looking to Leverage Its US Manufacturing”. The report can be accessed here.

Unusual Machines, Inc. (UMAC) is a development-stage technology company that engages in the provision of drone solutions with a focus on first-person view (FPV) technology. The company provides products for the entertainment, recreation, and competitive racing industries. UMAC was founded in 2019 and is headquartered in Orlando, Florida.

Regulation and legislation are key drivers of UMAC’s growth prospects. Recent US legislation is driving a US drone and drone component manufacturing market that has been dominated by Chinese vendors. US-based vendors should have a strong competitive advantage as regulatory and DoD procurement demand domestic suppliers. Donald Trump Jr. joined UMAC’s advisor board in November 2024.

UMAC currently focuses on drone flight controllers and motors. Allied Market Research estimates the drone flight control system market, valued at $15.5 billion in 2021, is projected to reach $28.9 billion by 2031, a 6.4% CAGR. The drone motor market was valued at $2.6 billion in 2021 and is projected to reach $9.9 billion by 2031, a 14% CAGR.

Comparables have a median P/S of 6.4x, with UMAC trading at a significant premium of 20.8x. As the company is just now ramping sales, the premium is not surprising. The company’s comparables include drone makers and suppliers.

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