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BAE Systems PLC BA.

Morningstar Rating
GBX 1,278.50 +1.00 (0.08%)
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Company Report

Wide-Moat BAE: Increasing Our Fair Value Estimate on Higher European Defense Spending

Escalating global security concerns, intensified by the Ukraine conflict, are driving structurally higher growth in the defense market. We anticipate this growth will be uninterrupted for at least several years, considering that many countries, particularly in Europe, have underspent since the end of the Cold War. BAE Systems is strategically positioned to benefit, given its significant stakes in a broad array of major international defense projects.

Price vs Fair Value

BA. is trading at a 558% premium.
Price
GBX 1,277.50
Fair Value
GBX 2,596.00
Uncertainty
Medium
1-Star Price
GBX 6,612.10
5-Star Price
GBX 8,749.00
Economic Moat
Chwh
Capital Allocation
Cmkxqzrh

Bulls Say, Bears Say

Bulls

BAE is well positioned to capitalize on growth in global defense spending.

Bears

BAE depends on military funding for its sales, which is an inherently political and thus uncertain process.

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News

Trading Information

Previous Close Price
GBX 1,277.50
Day Range
GBX 1,269.50–1,291.00
52-Week Range
GBX 883.40–1,415.25
Bid/Ask
GBX 1,268.00 / GBX 1,300.00
Market Cap
GBX 3.88 Tril
Volume/Avg
3.5 Mil / 6.4 Mil

Key Statistics

Price/Earnings (Normalized)
19.47
Price/Sales
1.70
Dividend Yield (Trailing)
2.35%
Dividend Yield (Forward)
2.35%
Total Yield
3.80%

Company Profile

BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE’s share of US and European air programs as well as its businesses in Saudi Arabia and Australia; and the maritime segment comprises UK land- and marine-based activities.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Large Growth
Total Number of Employees
99,800

Competitors

Valuation

Metric
BA.
OSK
NOC
Price/Earnings (Normalized)
19.479.4919.73
Price/Book Value
3.671.814.55
Price/Sales
1.700.701.65
Price/Cash Flow
17.229.1515.72
Price/Earnings
BA.
OSK
NOC

Financial Strength

Metric
BA.
OSK
NOC
Quick Ratio
0.860.730.86
Current Ratio
1.081.431.13
Interest Coverage
7.3512.535.41
Quick Ratio
BA.
OSK
NOC

Profitability

Metric
BA.
OSK
NOC
Return on Assets (Normalized)
6.08%8.49%4.88%
Return on Equity (Normalized)
17.75%20.81%14.79%
Return on Invested Capital (Normalized)
11.67%17.92%8.76%
Return on Assets
BA.
OSK
NOC
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Aerospace & Defense Industry Comparables

1-Day Chart
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Economic Moat
Market Cap
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TransDigm Group Inc
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Northrop Grumman Corp
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XkpfvdcpblVsb$64.8 Bil
Rolls-Royce Holdings PLC ADR
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BAE Systems PLC ADR
BAESY
SsbcwmsNhbw$49.1 Bil

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