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Boeing Co BA

Morningstar Rating
$200.72 +0.18 (0.09%)
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Company Report

Boeing Earnings: Quality Puts a Pause on 737 MAX Expansion; Valuation Down Just 6% to $219

Boeing will pause its 737 MAX assembly line expansion plans until the Federal Aviation Administration is satisfied that its manufacturing processes are stable and reliable enough to certify that its planes are consistently built to their specified design and safety standards. Boeing will also wait a bit longer for certification by the FAA of its 737 MAX 7 and MAX 10 models—the MAX 7 is essentially custom-built for Southwest Airlines' specialty short-haul flights. During the company's fourth-quarter earnings call on Jan. 31, CEO Dave Calhoun noted quite candidly that the pause mandated by the FAA will benefit Boeing's manufacturing and supply chain, offering suppliers time to build up buffer stock and the company and its employees time to "stand down" and re-examine their intricate assembly process. We anticipate the stabilization will take until mid-2025 and have tapered our forecast for 737 deliveries accordingly, lowering our fair value estimate to $219 from $232.

Price vs Fair Value

BA is trading at a 8% discount.
Price
$200.54
Fair Value
$686.00
Uncertainty
High
1-Star Price
$724.58
5-Star Price
$671.10
Economic Moat
Pyvvs
Capital Allocation
Crtstbvj

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
$200.54
Day Range
$200.04202.00
52-Week Range
$176.25267.50
Bid/Ask
$200.68 / $200.73
Market Cap
$122.53 Bil
Volume/Avg
3.0 Mil / 8.8 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
1.58
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 & 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 Core
Total Number of Employees
171,000

Competitors

Valuation

Metric
BA
AIR
NOC
Price/Earnings (Normalized)
33.5020.59
Price/Book Value
7.774.53
Price/Sales
1.581.881.73
Price/Cash Flow
65.8525.8516.88
Price/Earnings
BA
AIR
NOC

Financial Strength

Metric
BA
AIR
NOC
Quick Ratio
0.280.490.86
Current Ratio
1.141.161.15
Interest Coverage
0.187.065.30
Quick Ratio
BA
AIR
NOC

Profitability

Metric
BA
AIR
NOC
Return on Assets (Normalized)
−1.22%3.29%5.27%
Return on Equity (Normalized)
30.50%15.47%
Return on Invested Capital (Normalized)
0.74%16.67%9.27%
Return on Assets
BA
AIR
NOC
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Aerospace & Defense Industry Comparables

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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
EADSY
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RTX
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LMT
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GD
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NOC
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TDG
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BAESY
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LHX
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RYCEY
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