Skip to Content
Rating as of

Morningstar’s Analysis

Valuation
Currency in EUR
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

Capital Allocation

PREMIUM

Airbus Increases Production Schedule Ahead of Our Expectations; Raising FVE to EUR 127

Burkett Huey, CFA Equity Analyst

Analyst Note

| Burkett Huey, CFA |

We are increasing our fair value estimate for wide-moat Airbus to EUR 127 from EUR 124 and increasing our fair value estimate for Airbus’ dollar-denominated shares to $39 from $38 on the announcement that Airbus will be increasing production rates for the A320 family of aircraft from 40 per month currently to 64 per month by second-quarter 2023. The production increase pulls forward production by about 2-3 years relative to our previous expectations and consequently pulls forward our free cash flow estimates. Shares are up by about 10% on the announcement, which subsequently reduces the margin of safety for the stock, but the median stock under Morningstar’s coverage trades at 1.06 its fair value, so we still think Airbus offers an attractive relative valuation.

Read Full Analysis

Company Profile

Business Description

Airbus is a major aerospace and defense firm. The company designs, develops, and manufactures commercial and military aircraft, as well as space launch vehicles and satellites. The company operates its business through three divisions: commercial, defense and space, and helicopters. Commercial offers a full range of aircraft ranging from the narrow-body (130-200 seats) A320 series to the much larger A350-1000 wide body. The defense and space segment supplies governments with military hardware, including transport aircraft, aerial tankers, and fighter aircraft (Eurofighter). The helicopter division manufactures turbine helicopters for the civil and parapublic markets.

Contact
Mendelweg 30
Leiden, ZH, 2333 CS, Netherlands
T +31 715245000
Sector Industrials
Industry Aerospace & Defense
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 127,814

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.