This former penny stock has already tripled this year – and it just got another SpaceX deal!

When you invest in shares in the dark, cold days of early January, the idea is that you may already have it three times at the end of August it is a thought to warm the cocoa! But that's exactly what happened Filtronic (LSE: FTC). Since I had a penny a few months ago, the share is up 252% so far in 2024. What a return!

Another major customer return. Filtronic announced today (30 August) that rocket company SpaceX has placed the next production order for its E-band solid state amplifier modules. Those will be used to support SpaceX's expanding Starlink satellite internet service.

Valued at around £6.4m, Filtronic said the order meant it now expects to be trading ahead of expectations in its 2025 financial year.

As an investor, am I missing the boat with this one-time penny stock? Or will its share price, and its products, still reach the stars?

A record of consolidated income

With revenues of £25m last year, that £6.4m contract win is significant for Filtronic. I also think the fact that a customer with a high demand for SpaceX technology is returning with a repeat order is a strong endorsement of Filtronic's offering. It could help attract more customers, opening the door to revenue growth not only for SpaceX but for other companies as well.

But when it comes to numbers, historically, revenue hasn't been as big a challenge for Filtronic as profit. Last year's profit of £3.1m after tax was respectable. But the year before, the number was less than a sixth of that.

That helps explain the field trip you had. But what now?

Does the prospect of continued revenue growth mean that fixed costs can be spread thin, boosting the bottom line even more? Or could large contracts expand a small company and involve spending money that puts it back in the red, as was the case a few years ago?

I'm tempted to buy

Time will tell, and it could go either way. But I have hope. It was last month that Filtronic announced a multibillion-dollar SpaceX order — and now it's announced another.

If it can increase the sales I think the company can increase the profit margins. It is an expert in the field of expertise. Clients are willing to pay well – no smart client wants to risk losing an expensive satellite because they are trying to buy the right stuff.

The rise in stock prices this year has been phenomenal. But in five years, the shares have increased by 944%!

A price-to-earnings (P/E) ratio of 53 is too high for my taste, but if I'm right about the potential for rapid earnings growth, the potential P/E ratio could be lower.

I am tempted to invest here and will be considering making a Filtronic purchase in September.