Series([], ) (EADSF) — Overvalued With Mixed Growth Prospects
Airbus SE shares moved 20.7% over the last 52 weeks, with a high of $138.75 and a low of $82.66. During this time, the stock outperformed the S&P 500 index by 28.0%. As of April 2023, the company's 50-day average price is $128.97. Airbus SE engages in design, manufacture, and delivery of aerospace products, services, and solutions worldwide. The Large-Cap Industrials company has 128,896 full time employees and is based in Leiden, Netherlands. Airbus SE has returned a 1.3% dividend yield over the last 12 months, but this may not be sustainable seen the company's record of negative cash flows.
Declining Revenues With a Flat Capital Expenditure Trend:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue | $70,478,000 | $49,912,000 | $52,149,000 |
| Gross Margins | 14.9% | 11.3% | 18.5% |
| Operating Margins | 1.4% | 1.3% | 9.3% |
| Net Income | -$1,362,000 | -$1,133,000 | $4,213,000 |
| Net Margins | -1.93% | -2.27% | 8.08% |
| Earnings Per Share | -$1.75 | -$1.45 | $5.77 |
| Diluted Shares | 777,040 | 783,178 | 789,747 |
| Free Cash Flow | $1,413,000 | -$7,179,000 | $2,711,000 |
| Capital Expenditures | -$2,340,000 | -$1,759,000 | -$1,928,000 |
| Net Current Assets | -$51,696,000 | -$45,239,000 | -$41,761,000 |
| Current Ratio | 0.91 | 1.17 | 1.17 |
| Long Term Debt | $6,891,000 | $12,544,000 | $11,603,000 |
| Net Debt / EBITDA | n/a | 0.42 | n/a |
Airbus SE's Valuation Is in Line With Its Sector Averages:
Airbus SE has a trailing twelve month P/E ratio of 26.0 compared to the Industrials sector's average of 20.49. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 3 years of reported EPS is 62.6%. On this basis, the company's PEG ratio is 0.36. Substituting the 18.1% weighted average of the company's EPS growth rate and the overall market's expected 5-year EPS growth rate, we obtain a normalized PEG ratio of 1.24, which implies that the company's shares are likely fairly valued. Airbus SE's P/B ratio is 8.4 compared to its sector average of 3.78. The company is likely overvalued in terms of its book value. As of the date of publication, the company's shares are trading 672.7% above their Graham number of $17.84.
