Boeing Co
BA : NYSE : Industrial Goods

$69.39 -1.01 | -1.43%
Today's Range: 69.25 - 70.09
Avg. Daily Volume: 4,126,100
05/30/12 - 4:00 PM ET
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Financial Analysis


BOEING CO's gross profit margin for the first quarter of its fiscal year 2012 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. BOEING CO has very weak liquidity. Currently, the Quick Ratio is 0.42 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 28.50% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.



Income Statement Q1 FY12 Q1 FY11
Net Sales ($mil)19383.014910.0
EBITDA ($mil)1978.01351.0
EBIT ($mil)1552.0971.0
Net Income ($mil)923.0586.0


Balance Sheet Q1 FY12 Q1 FY11
Cash & Equiv. ($mil)10516.07772.0
Total Assets ($mil)80205.068760.0
Total Debt ($mil)11624.011689.0
Equity ($mil)5027.03912.0


Profitability Q1 FY12 Q1 FY11
Gross Profit Margin19.4421.96
EBITDA Margin10.29.06
Operating Margin8.016.51
Sales Turnover0.910.93
Return on Assets5.434.91
Return on Equity86.4786.4
Debt Q1 FY12 Q1 FY11
Current Ratio1.211.16
Debt/Capital0.70.75
Interest Expense147.0163.0
Interest Coverage10.565.96


Share Data Q1 FY12 Q1 FY11
Shares outstanding (mil)748.73737.96
Div / share0.440.42
EPS1.220.78
Book value / share6.715.3
Institutional Own % n/a n/a
Avg Daily Volume4086187.05067917.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 15.80 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 15.19. For additional comparison, its price-to-book ratio of 10.63 indicates a significant premium versus the S&P 500 average of 2.12 and a significant premium versus the industry average of 5.05. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, BOEING CO seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BA 12.39 Peers 15.80   BA 9.14 Peers 10.74

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BA is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BA is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BA 12.61 Peers 13.38   BA NM Peers 4.97

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

BA is trading at a premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BA's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BA 10.63 Peers 5.05   BA 27.43 Peers 6.69

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BA is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

BA is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BA 0.73 Peers 1.20   BA 14.38 Peers 9.07

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BA is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

BA has a sales growth rate that significantly exceeds its peers.

 

 

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