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BAE Systems PLC BA.

Morningstar Rating
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Stock XLON Rating as of
GBX 1,363.50 +23.50 (1.75%)
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As of Delayed Price Closed
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Company Report

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Raising BAE System Fair Value Estiamte on Improved Program Execution

Loredana Muharremi

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.

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Price vs Fair Value

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BA. is trading at a 1% discount.
Price
GBX 1,316.00
Fair Value
GBX 9,459.00
Uncertainty
Medium
1-Star Price
GBX 7,892.50
5-Star Price
GBX 766.00
Economic Moat
Frph
Capital Allocation
Rmzvxjyk

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

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Trading Information

Previous Close Price
GBX 1,340.00
Day Range
GBX 1,344.00–1,388.50
52-Week Range
GBX 883.40–1,388.50
Bid/Ask
GBX 1,341.00 / GBX 1,395.00
Market Cap
GBX 4.12 Tril
Volume/Avg
10.3 Mil / 7.1 Mil

Key Statistics

Price/Earnings (Normalized)
20.78
Price/Sales
1.82
Dividend Yield (Trailing)
2.24%
Dividend Yield (Forward)
2.24%
Total Yield
3.56%

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 U.S. Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's U.S.- and U.K.-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the U.S. government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the U.S. Defense Department; the air segment includes BAE’s share of U.S. and European air programs as well as its businesses in Saudi Arabia and Australia; and the maritime segment comprises U.K. land- and marine-based activities.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Large Growth
Total Number of Employees
99,800
Website
https://www.baesystems.com

Competitors

Valuation

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Metric
BA.
GD
BA
Price/Earnings (Normalized)
 20.7823.39—
Price/Book Value
 3.923.60—
Price/Sales
 1.821.801.31
Price/Cash Flow
 18.3819.4053.67
Price/Earnings
BA.
GD
BA

Financial Strength

Metric
BA.
GD
BA
Quick Ratio
 0.860.760.28
Current Ratio
 1.081.441.14
Interest Coverage
 7.3513.190.18
Quick Ratio
BA.
GD
BA

Profitability

Metric
BA.
GD
BA
Return on Assets (Normalized)
 6.08%6.58%−1.22%
Return on Equity (Normalized)
 17.75%17.44%—
Return on Invested Capital (Normalized)
 11.67%12.06%0.74%
Return on Assets
BA.
GD
BA
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