BA : NYSE : Industrial Goods
$152.25 | %
Today's Range: 151.12 - 152.49
Avg. Daily Volume: 3610500.0
12/02/16 - 4:00 PM ET

Financial Analysis


BOEING CO's gross profit margin for the third 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, representing an increase to the bottom line. BOEING CO has very weak liquidity. Currently, the Quick Ratio is 0.40 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 significantly decreased by 69.00% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)23898.025849.0
EBITDA ($mil)2702.02956.0
EBIT ($mil)2228.02519.0
Net Income ($mil)2279.01704.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)9668.09857.0
Total Assets ($mil)88950.098998.0
Total Debt ($mil)10456.09016.0
Equity ($mil)2089.06740.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin18.7518.19
EBITDA Margin11.311.43
Operating Margin9.329.75
Sales Turnover1.070.98
Return on Assets4.825.67
Return on Equity205.3683.32
Debt Q3 FY16 Q3 FY15
Current Ratio1.281.17
Debt/Capital0.830.57
Interest Expense142.0123.0
Interest Coverage15.6920.48


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)618.96670.96
Div / share1.090.91
EPS3.62.47
Book value / share3.3810.05
Institutional Own % n/a n/a
Avg Daily Volume3501921.03888712.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 22.08 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 43.06 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 15.57. 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 22.12 Peers 22.08   BA 8.49 Peers 15.86

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 15.36 Peers 20.20   BA NM Peers 1.97

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.

 

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 43.06 Peers 15.57   BA -17.36 Peers 161.72

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 0.95 Peers 1.58   BA -2.22 Peers 3.89

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

 

 

Latest Stock Upgrades/Downgrades