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Boeing Co BA

Morningstar Rating
$186.89 +2.54 (1.38%)
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Company Report

Boeing: Fine, Criminal Plea Reduce Uncertainty About MAX 8 Crash Case; Immaterial to Our $221 FVE

Boeing and the US Department of Justice have entered a plea agreement related to the 2018 and 2019 crashes of 737 MAX 8 jets, which caused the deaths of 346 passengers and crew. Boeing will plead guilty to defrauding the FAA by providing misleading information about the new airplane's guidance software. It will also pay $244 million in legal fines, spend $455 million beefing up its safety protocols, and hire an independent monitor to oversee them. Neither the fines nor further civil legal settlements are material to our $221 fair value estimate, and we believe Boeing will have spent $455 million on its upgraded safety protocols anyway. A judge will have to accept or reject the agreement.

Price vs Fair Value

BA is trading within a range we consider fairly valued.
Price
$186.89
Fair Value
$223.00
Uncertainty
High
1-Star Price
$719.13
5-Star Price
$236.40
Economic Moat
Ndyw
Capital Allocation
Scywfjnk

Bulls Say, Bears Say

Bulls

Boeing has a large backlog that covers several years of production for the most popular aircraft, which gives us confidence in aggregate demand for aerospace products.

Bears

Boeing's reputation for engineering prowess may have taken a permanent hit since repeated manufacturing flaws in 737 MAX jets have hampered Boeing's assembly pace and disrupted airlines' and passengers' schedules.

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News

Trading Information

Previous Close Price
$184.35
Day Range
$184.63189.59
52-Week Range
$159.70267.54
Bid/Ask
$186.75 / $187.00
Market Cap
$114.73 Bil
Volume/Avg
6.3 Mil / 6.1 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
1.49
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Boeing is a major aerospace and defense firm. It operates in three segments: commercial airplanes; defense, space, and security; and Global services. Boeing's commercial airplanes segment competes with Airbus in the production of aircraft that can carry more than 130 passengers. Boeing's defense, space, and security segment competes with Lockheed, Northrop, and several other firms to create military aircraft and weaponry. Global services provides aftermarket support to airlines.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Large Growth
Total Number of Employees
171,000

Competitors

Valuation

Metric
BA
NOC
LMT
Price/Earnings (Normalized)
21.0418.67
Price/Book Value
4.9220.14
Price/Sales
1.491.771.80
Price/Cash Flow
61.0416.5715.24
Price/Earnings
BA
NOC
LMT

Financial Strength

Metric
BA
NOC
LMT
Quick Ratio
0.220.881.05
Current Ratio
1.141.111.24
Interest Coverage
0.215.648.83
Quick Ratio
BA
NOC
LMT

Profitability

Metric
BA
NOC
LMT
Return on Assets (Normalized)
−1.22%5.08%12.62%
Return on Equity (Normalized)
15.79%91.28%
Return on Invested Capital (Normalized)
0.74%9.13%30.29%
Return on Assets
BA
NOC
LMT
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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
GE
FtlpwswpmKdw$184.1 Bil
RTX Corp
RTX
GxsmpxxhltGbvzg$151.6 Bil
Lockheed Martin Corp
LMT
GsbdmvmvrRkp$125.1 Bil
Airbus SE ADR
EADSY
FwjljhfkptJmd$112.3 Bil
General Dynamics Corp
GD
RsjczvyslGjtk$79.8 Bil
Northrop Grumman Corp
NOC
LxwhywscGrt$70.2 Bil
TransDigm Group Inc
TDG
WmcjtjtszQjy$69.1 Bil
BAE Systems PLC ADR
BAESY
NwszmyqmWmsfj$48.8 Bil
Rolls-Royce Holdings PLC ADR
RYCEY
VrwkcqwyMjcgfd$48.3 Bil

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