The Boeing Company
The Boeing Company Fundamental Analysis
The Boeing Company (BA) shows weak financial fundamentals with a PE ratio of 79.04, profit margin of 2.50%, and ROE of -94.94%. The company generates $91.5B in annual revenue with weak year-over-year growth of -14.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -104.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BA's fundamental strength across five key dimensions:
Efficiency Score
WeakBA struggles to generate sufficient returns from assets.
Valuation Score
ModerateBA shows balanced valuation metrics.
Growth Score
WeakBA faces weak or negative growth trends.
Financial Health Score
ModerateBA shows balanced financial health with some risks.
Profitability Score
WeakBA struggles to sustain strong margins.
Key Financial Metrics
Is BA Expensive or Cheap?
P/E Ratio
BA trades at 79.04 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BA's PEG of 0.67 indicates potential undervaluation.
Price to Book
The market values The Boeing Company at 32.39 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.68 times EBITDA. This signals the market has high growth expectations.
How Well Does BA Make Money?
Net Profit Margin
For every $100 in sales, The Boeing Company keeps $2.50 as profit after all expenses.
Operating Margin
Core operations generate -6.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-94.94 in profit for every $100 of shareholder equity.
ROA
The Boeing Company generates $1.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Boeing Company generates limited operating cash flow of $1.09B, signaling weaker underlying cash strength.
Free Cash Flow
The Boeing Company generates weak or negative free cash flow of $-1.92B, restricting financial flexibility.
FCF Per Share
Each share generates $-2.44 in free cash annually.
FCF Yield
BA converts -1.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
79.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
32.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
9.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.95
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.09
vs 25 benchmark
How BA Stacks Against Its Sector Peers
| Metric | BA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 79.04 | 26.49 | Worse (Expensive) |
| ROE | -94.94% | 1307.00% | Weak |
| Net Margin | 2.50% | -5131.00% (disorted) | Weak |
| Debt/Equity | 9.92 | 0.81 | Weak (High Leverage) |
| Current Ratio | 1.27 | 10.48 | Neutral |
| ROA | 1.33% | -1549793.00% (disorted) | Weak |
BA outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Boeing Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-23.73%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-1530.99%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-333.52%
Industry Style: Cyclical, Value, Infrastructure
Declining