BA:LSE-BAE Systems plc (GBX)

COMMON STOCK | Aerospace & Defense | LSE

Last Closing Price

GBX 479.90

Change

-9.30 (-1.90)%

Market Cap

GBX 15.84B

Volume

5.77M

Average Target Price

GBX 660.58 (+37.65%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Air, and Maritime. The Electronic Systems segment offers electronic warfare systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance systems, and hybrid electric drive systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for C4ISR systems and enterprise IT networks; and solutions and services to enhance the collection, analysis, and processing of data across the US civilian and military intelligence communities. It also offers data intelligence solutions to defend against national-scale threats, protect their networks, and data against attacks; security and intelligence solutions to the United Kingdom government and allied international governments; anti-fraud and regulatory compliance solutions; and enterprise-level data and digital services. The Platforms & Services (US) segment manufactures combat vehicles, weapons, and munitions, as well as provides ship repair services and the management of government-owned munitions facilities. The Air segment develops, manufactures, upgrades, and supports combat and jet trainer aircraft. The Maritime segment designs, manufactures, and supports surface ships, submarines, torpedoes, radars, and command and combat systems; and supplies naval gun systems. It also supplies naval weapon systems, missile launchers, and precision munitions. The company was incorporated in 1979 and is based in London, the United Kingdom.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-07-08 )

Largest Industry Peers for Aerospace & Defense

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
RR:LSE Rolls-Royce Holdings plc

+10.30 (+3.71%)

GBX5.56B N/A 11.36
MGGT:LSE Meggitt PLC

-9.00 (-2.81%)

GBX2.43B 11.45 6.60
QQ:LSE QinetiQ Group plc

-6.00 (-2.00%)

GBX1.67B 16.01 9.07
ULE:LSE Ultra Electronics Holdings plc

-42.00 (-2.05%)

GBX1.43B 19.26 10.62
AVON:LSE Avon Rubber p.l.c

+35.00 (+1.02%)

GBX1.08B 83.88 42.11
CHG:LSE Chemring Group PLC

-3.50 (-1.39%)

GBX0.70B 0.31 10.34
SNR:LSE Senior plc

-0.10 (-0.15%)

GBX0.27B 9.84 4.79
CHRT:LSE Cohort plc

+25.00 (+4.39%)

GBX0.23B 29.48 11.17
TPG:LSE TP Group plc

+0.05 (+0.74%)

GBX0.05B 2.88 25.88
MSI:LSE MS INTERNATIONAL plc

N/A

GBX0.02B 31.02 0.89

ETFs Containing BA

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Aerospace & Defense)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -15.03% 67% D+ 40% F
Dividend Return 2.44% 50% F 80% B-
Total Return -12.59% 67% D+ 43% F
Trailing 12 Months  
Capital Gain -1.64% 50% F 59% F
Dividend Return 4.76% 100% A+ 85% B
Total Return 3.12% 50% F 67% D+
Trailing 5 Years  
Capital Gain 2.72% 45% F 48% F
Dividend Return 23.42% 100% A+ 82% B-
Total Return 26.13% 55% F 58% F
Average Annual (5 Year Horizon)  
Capital Gain 4.86% 46% F 43% F
Dividend Return 4.03% 91% A- 81% B-
Total Return 8.88% 54% F 56% F
Risk Return Profile  
Volatility (Standard Deviation) 17.01% 92% A- 52% F
Risk Adjusted Return 52.23% 54% F 51% F
Market Capitalization 15.84B 100% A+ 99% A+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Aerospace & Defense)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 10.46 70% C- 61% D-
Price/Book Ratio 2.87 36% F 21% F
Price / Cash Flow Ratio 9.92 45% F 36% F
EV/EBITDA 6.71 73% C 63% D
Management Effectiveness  
Return on Equity 27.53% 100% A+ 93% A
Return on Invested Capital 17.57% 92% A- 87% B+
Return on Assets 4.09% 50% F 64% D
Debt to Equity Ratio 55.85% 14% F 33% F
Technical Ratios  
Short Ratio N/A N/A N/A N/A N/A
Short Percent N/A N/A N/A N/A N/A
Beta 0.46 83% B 84% B
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (GBX)

Quarterly Financials (GBX)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector