Skip to Content
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Stewardship

PREMIUM

Boeing Raises and Conserves Cash in Second Quarter as It Awaits MAX Re-Entry and Better Environment

Burkett Huey, CFA Equity Analyst

Analyst Note

| Burkett Huey, CFA |

Wide-moat-rated Boeing reported a pivotal quarter as the company adjusts its longer-term commercial production targets to better serve the smaller aviation market. We’re reducing our fair value estimate to $264 per share from $281 to reflect lower midcycle 737 MAX  and 787 production and consequently a lower midcycle operating margin due to less learning curve improvements. We remain bullish on the stock, and our critical assumption is that Boeing will return to 2018 narrow-body production levels by 2024, which is predicated on the assumed wide distribution of a COVID-19 vaccine by mid-2021.

Read Full Analysis

Company Profile

Business Description

Boeing is the world’s largest aerospace and defense firm. With headquarters in Chicago, the firm operates in four segments, commercial airplanes, defense, space & security, global services, and Boeing capital. Boeing’s commercial airplanes segment produces about 60% of sales and two-thirds of operating profit, and it competes with Airbus in the production of aircraft ranging from 130 seats upwards. Boeing’s defense, space & security segment competes with Lockheed, Northrop, and several other firms to create military aircraft and weaponry. The defense segment produces about 25% of sales and 13% of operating profit, respectively. Boeing’s global services segment provides aftermarket servicing to commercial and military aircraft and produces about 15% of sales and 21% of operating profit.

Contact
100 North Riverside Plaza
Chicago, IL, 60606-1596
T +1 312 544-2000
Sector Industrials
Industry Aerospace & Defense
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 161,100

Related