BAE Systems plc
BAE Systems plc Fundamental Analysis
BAE Systems plc (BAESF) shows moderate financial fundamentals with a PE ratio of 31.67, profit margin of 7.28%, and ROE of 18.23%. The company generates $27.5B in annual revenue with strong year-over-year growth of 14.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BAESF's fundamental strength across five key dimensions:
Efficiency Score
WeakBAESF struggles to generate sufficient returns from assets.
Valuation Score
WeakBAESF trades at a premium to fair value.
Growth Score
ModerateBAESF shows steady but slowing expansion.
Financial Health Score
ModerateBAESF shows balanced financial health with some risks.
Profitability Score
ModerateBAESF maintains healthy but balanced margins.
Key Financial Metrics
Is BAESF Expensive or Cheap?
P/E Ratio
BAESF trades at 31.67 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BAESF's PEG of 9.26 indicates potential overvaluation.
Price to Book
The market values BAE Systems plc at 5.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.91 times EBITDA. This signals the market has high growth expectations.
How Well Does BAESF Make Money?
Net Profit Margin
For every $100 in sales, BAE Systems plc keeps $7.28 as profit after all expenses.
Operating Margin
Core operations generate 9.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.23 in profit for every $100 of shareholder equity.
ROA
BAE Systems plc generates $5.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BAE Systems plc produces operating cash flow of $3.14B, showing steady but balanced cash generation.
Free Cash Flow
BAE Systems plc produces free cash flow of $2.25B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.77 in free cash annually.
FCF Yield
BAESF converts 3.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How BAESF Stacks Against Its Sector Peers
| Metric | BAESF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.67 | 26.49 | Worse (Expensive) |
| ROE | 18.23% | 1307.00% | Weak |
| Net Margin | 7.28% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.90 | 0.81 | Neutral |
| Current Ratio | 0.99 | 10.48 | Weak Liquidity |
| ROA | 5.47% | -1549792.00% (disorted) | Weak |
BAESF 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 BAE Systems plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.85%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
40.00%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
170.30%
Industry Style: Cyclical, Value, Infrastructure
High Growth