BA : NYSE : Industrial Goods
$133.66 | %
Today's Range: 132.30 - 133.80
Avg. Daily Volume: 4,154,700
07/29/16 - 4:00 PM ET

Financial Analysis


BOEING CO's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. BOEING CO has very weak liquidity. Currently, the Quick Ratio is 0.39 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 90.66% 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.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)24755.024543.0
EBITDA ($mil)1148.02103.0
EBIT ($mil)701.01650.0
Net Income ($mil)-234.01110.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)9265.09625.0
Total Assets ($mil)89609.098102.0
Total Debt ($mil)11015.09016.0
Equity ($mil)585.06264.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin16.4914.92
EBITDA Margin4.638.56
Operating Margin2.836.72
Sales Turnover1.080.97
Return on Assets4.145.37
Return on Equity635.0484.19
Debt Q2 FY16 Q2 FY15
Current Ratio1.271.17
Debt/Capital0.950.59
Interest Expense130.0125.0
Interest Coverage5.3913.2


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)625.86681.07
Div / share1.090.91
EPS-0.371.59
Book value / share0.939.2
Institutional Own % n/a n/a
Avg Daily Volume4141329.05753042.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 21.90 for the Aerospace & Defense industry and a value on par with the S&P 500 average of 25.07. For additional comparison, its price-to-book ratio of 145.46 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 28.46. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, BOEING CO proves to trade at a premium 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 24.99 Peers 21.90   BA 8.39 Peers 17.12

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

BA is trading at a premium 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 significant 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 14.21 Peers 19.74   BA NM Peers 2.27

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 significant 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 145.46 Peers 28.46   BA -25.89 Peers 0.24

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.

 

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

However, BA is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BA 0.88 Peers 1.66   BA 1.96 Peers 5.90

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

BA significantly trails its peers on the basis of sales growth

 

 

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