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Airbus SE ADR EADSY

Morningstar Rating
$35.40 +0.15 (0.43%)
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Company Report

Boeing: Spirit Aero Systems Deal Makes Good Sense; Fair Value Estimates Unchanged

Boeing will take over Spirit Aero Systems later in 2024, exchanging between .18 and .25 shares of its stock per outstanding share of Spirit Aero, depending on the market price of Boeing shares in the weeks preceding the deal's closing. Their agreement values Spirit Aero at $37.25 per share, a $6.25 premium to our fair value estimate. We see the price as justifiable on two grounds: 1) as an all-stock deal, Spirit shareholders may warrant some compensation for interim uncertainty about the value of the currency they are accepting; 2) but more importantly, Spirit will be worth more as part of Boeing than as a standalone enterprise.

Price vs Fair Value

EADSY is trading at a 228% premium.
Price
$35.25
Fair Value
$78.30
Uncertainty
Medium
1-Star Price
$41.15
5-Star Price
$36.17
Economic Moat
Nwyfs
Capital Allocation
Zmfyrqcty

Bulls Say, Bears Say

Bulls

Airbus’ A320 family continues to have a substantial lead in the valuable narrow-body market, and the A321XLR has the potential to open new long-range routes to low-cost carriers.

Bears

Aerospace remains a highly regulated space, and regulatory burden could increase globally subsequent to the grounding of the Boeing 737 MAX.

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News

Trading Information

Previous Close Price
$35.25
Day Range
$35.1435.51
52-Week Range
$31.8746.78
Bid/Ask
$35.26 / $35.53
Market Cap
$111.99 Bil
Volume/Avg
399,504 / 385,775

Key Statistics

Price/Earnings (Normalized)
21.89
Price/Sales
1.54
Dividend Yield (Trailing)
1.36%
Dividend Yield (Forward)
1.36%
Total Yield
1.60%

Company Profile

Airbus is a global aerospace and defense firm that designs, develops, and manufactures commercial and military aircraft, as well as space launch vehicles and satellites. The company operates three divisions: commercial, defense and space, and helicopters. Commercial offers aircraft ranging from narrow-body (120-200 seats) A220 and A320 series to much larger A330 and A350 wide body models. The defense and space segment supplies governments with military hardware, including transport aircraft, aerial tankers, and fighter aircraft (Eurofighter). The helicopter division manufactures turbine helicopters for the civil and public markets.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Large Growth
Total Number of Employees
150,093

Competitors

Valuation

Metric
EADSY
NOC
BA
Price/Earnings (Normalized)
21.8919.63
Price/Book Value
5.614.53
Price/Sales
1.541.641.49
Price/Cash Flow
18.0815.6460.98
Price/Earnings
EADSY
NOC
BA

Financial Strength

Metric
EADSY
NOC
BA
Quick Ratio
0.480.860.22
Current Ratio
1.171.131.14
Interest Coverage
6.305.410.21
Quick Ratio
EADSY
NOC
BA

Profitability

Metric
EADSY
NOC
BA
Return on Assets (Normalized)
3.14%4.88%−1.22%
Return on Equity (Normalized)
23.27%14.79%
Return on Invested Capital (Normalized)
13.81%8.76%0.74%
Return on Assets
EADSY
NOC
BA
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Aerospace & Defense Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
GE Aerospace
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LMT
RxnyssdjlMmsn$111.0 Bil
General Dynamics Corp
GD
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TransDigm Group Inc
TDG
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Northrop Grumman Corp
NOC
RsvqfqhctNtx$64.4 Bil
BAE Systems PLC ADR
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Rolls-Royce Holdings PLC ADR
RYCEY
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