Consider This Before Taking a Position in Boeing (BA)

By Ken Smith • Monday, January 08 15:08 • Permanent Link

Boeing sank -6.5% today, compared to the S&P 500's day change of 1.0%. The company is under pressure over a deepening scandal involving its ill-fated 737-max series of aircraft. The latest version of the best-selling narrow body liner has been plagued by design and production issues that have caused several accidents. Some experts believe these issues are symptoms of the company's failing culture. Nonetheless, Boeing investors have enjoyed an excellent year:

Boeing has moved 19.4% over the last year, and the S&P 500 logged a change of 20.7%
BA has an average analyst rating of buy and is -14.49% away from its mean target price of $272.26 per share
Its trailing earnings per share (EPS) is $-4.71
Boeing has a trailing 12 month Price to Earnings (P/E) ratio of -49.4 while the S&P 500 average is 15.97
Its forward earnings per share (EPS) is $3.97 and its forward P/E ratio is 58.6
Boeing is part of the Industrials sector, which has an average P/E ratio of 22.19 and an average P/B of 4.06
The company has a free cash flow of $6.69 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for passenger and cargo requirements, as well as provides fleet support services. The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration. The Global Services segment offers products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers. The Boeing Capital segment offers financing services and manages financing exposure for a portfolio of equipment under operating leases, sales-type/finance leases, notes and other receivables, assets held for sale or re-lease, and investments. The company was incorporated in 1916 and is based in Arlington, Virginia.

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.