BA : NYSE : Industrial Goods
$175.82 | %
Today's Range: 174.7687 - 177.53
Avg. Daily Volume: 3441800.0
03/24/17 - 4:02 PM ET

Financial Analysis


BOEING CO's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. BOEING CO has very weak liquidity. Currently, the Quick Ratio is 0.38 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 87.10% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)23286.023573.0
EBITDA ($mil)2656.02479.0
EBIT ($mil)2110.01995.0
Net Income ($mil)1631.01026.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)10029.012052.0
Total Assets ($mil)89997.094408.0
Total Debt ($mil)9952.09964.0
Equity ($mil)817.06335.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin18.8118.3
EBITDA Margin11.410.51
Operating Margin9.068.46
Sales Turnover1.051.02
Return on Assets5.435.48
Return on Equity599.1481.7
Debt Q4 FY16 Q4 FY15
Current Ratio1.251.35
Debt/Capital0.920.61
Interest Expense136.0126.0
Interest Coverage15.5115.83


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)617.15666.62
Div / share1.090.91
EPS2.591.51
Book value / share1.329.5
Institutional Own % n/a n/a
Avg Daily Volume3457130.03479441.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 22.89 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 134.60 indicates a significant premium versus the S&P 500 average of 2.98 and a significant premium versus the industry average of 36.58. 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 23.29 Peers 22.89   BA 10.47 Peers 16.97

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

BA is trading at a valuation on par with 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 17.47 Peers 20.78   BA 1.05 Peers 4.24

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

BA is trading at a valuation on par with its peers.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BA 134.60 Peers 36.58   BA 2.82 Peers 25.28

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 1.16 Peers 1.67   BA -1.61 Peers 5.61

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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