Fundamentals to Watch About Boeing (BA) Company

Boeing Company (BA) shares moved -2.0% over the last 52 weeks, with a high of $229.67 and a low of $113.02. During this time, the stock underperformed the S&P 500 index by 13.7%.The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The large-cap Industrials company has 142,000 full time employees and is based in Chicago, IL. Boeing Company has not offered any dividends in the last year.

Snapshot of the Company's Income Statement, Balance Sheet, and Cash Flow:

2018-12-31 2019-12-31 2020-12-31 2021-12-31
Revenue $101,127,000,000 $76,559,000,000 $58,158,000,000 $62,286,000,000
Revenue Growth n/a -24.3% -24.0% 7.1%
Gross Margins 19.42% 6.22% -2.06% 8.33%
Gross Margins Growth n/a -67.97% -133.12% 504.37%
Operating Margins 11.71% -2.75% -14.04% -1.1%
Operating Margins Growth n/a -123.48% -410.55% 92.17%
Earnings Per Share $17.85 $-1.12 $-20.88 $-7.15
EPS Growth n/a -106.27% -1764.29% 65.76%
Free Cash Flow $13,600,000,000 $-4,280,000,000 $-19,713,000,000 $-4,396,000,000
FCF Growth n/a -131.47% -360.58% 77.7%
LT Debt to Equity 25.08 -2.12 -3.33 -3.7

Basic Valuation Metrics:

Compared to the Industrials sector's average of 21.46, Boeing Company has a trailing twelve month price to earnings (P/E) ratio of -22.5 and, based on its Eps guidance of 2.38, an expected P/E ratio of 78.3. The firm's price to earnings growth (PEG) is -0.22, which indicates that the company is undervalued in terms of its expected earnings growth. As of the date of publication, the company is trading 150.4% above their fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:

√(22.5 * TTM earnings per share * book value per share) = √(22.5 * -8.29 * -29.715) = $74.43

Sentiment Overview:

25 analysts are following Boeing Company and have set target prices ranging from $121 to $250 per share. On average, they have given the company a rating of buy. At the current price of $186.36, BA is trading -5.5% away from its average analyst target price of $197.2 per share, implying an analyst consensus of some upside potential for the stock. The company has a very low short interest since 1.5% of the company's shares are tied to short positions. Institutions own 58.2% of Boeing Company's shares, while the insider ownership rate stands at 0.1%. The biggest shareholder is Vanguard Group, Inc. (The) with a 7.61% stake in the company worth approximately $8,420,805,036.00.

Overall, the Market Inference analysis team rates this stock as being overvalued with poor growth indicators and positive market sentiment.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.