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Boeing (BA)
NYSE:BA
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Boeing
(NYSE:BA)
Rating:52Neutral
Price Target:―
Positive Factors
Aerospace Contracts
Boeing’s Millennium Space Systems subsidiary secured a $414 million contract from the Space Development Agency to construct a prototype constellation of hypersonic missile tracking satellites.
Aircraft Orders
Qatar Airways placed an order for up to 210 B787 and 777X aircraft, the largest purchase order in company history.
Negative Factors
Regulatory Concerns
Concerns remain about the timing of 737-7 and -10 certification and light May 737 deliveries.
Tariff Risks
EU has threatened to impose retaliatory tariffs vs. Boeing, if US/EU tariff talks fail.
Boeing (BA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$156.58B
Dividend YieldN/A
Average Volume (3M)9.15M
Price to Earnings (P/E)―
Beta (1Y)1.40
Revenue Growth-9.15%
EPS Growth-406.76%
CountryUS
Employees172,000
SectorIndustrials
Sector Strength90
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.49
Shares Outstanding754,005,500
10 Day Avg. Volume9,904,955
30 Day Avg. Volume9,148,828
Financial Highlights & Ratios
PEG Ratio-5.84
Price to Book (P/B)-44.15
Price to Sales (P/S)0.00
P/FCF Ratio-11.51
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit-131.31
Enterprise Value/Ebitda-11.06
Forecast
1Y Price Target
$213.37Price Target Upside4.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
Boeing Business Overview & Revenue Model
Company DescriptionThe 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 company operates through four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital. The Commercial Airplanes segment provides commercial jet aircraft for passenger and cargo requirements, as well as 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 Chicago, Illinois.
How the Company Makes MoneyBoeing makes money through several key revenue streams. The Commercial Airplanes segment generates revenue by manufacturing and selling commercial jetliners to airlines and leasing companies worldwide. Revenue in this segment is significantly influenced by the global demand for air travel, which drives orders for new aircraft. The Defense, Space & Security segment earns income from government contracts for military aircraft, missile systems, satellites, and related services. This segment's earnings are largely dependent on U.S. and international defense budgets and geopolitical factors. Global Services provides aftermarket support, including maintenance, repair, and overhaul services, primarily for its commercial and military customers, contributing to a steady stream of revenue. Boeing Capital offers financing solutions, facilitating sales and leasing of Boeing products. Strategic partnerships and long-term contracts with governments and airlines are crucial for securing future revenue and maintaining competitive advantage in the aerospace industry.
Boeing Key Performance Indicators (KPIs)
Any
Commercial Airplane Deliveries
Tracks the number of airplanes delivered to customers, reflecting production efficiency, demand, and overall market health.
Tracks the number of airplanes delivered to customers, reflecting production efficiency, demand, and overall market health.
Data provided by:
Main Street Data
Main Street DataBoeing Financial Statement Overview
Summary
Boeing is facing significant financial hurdles, with persistent losses and negative margins on the income statement. The balance sheet reflects financial strain and high leverage, while cash flow analysis indicates liquidity challenges. These factors combined suggest a dire need for strategic financial restructuring and operational improvements to stabilize the company.Income Statement
Boeing's income statement reveals significant challenges with persistent losses. The TTM Gross Profit Margin is negative, suggesting cost management issues. The Net Profit Margin is also negative, indicating overall unprofitability. Revenue growth shows volatility with no consistent upward trajectory, reflecting market and operational difficulties. EBIT and EBITDA margins are negative, highlighting operational inefficiencies.23
Negative
Balance Sheet
Boeing's balance sheet is under strain with negative stockholders' equity, indicating insolvency risk. The debt-to-equity ratio is not computable due to negative equity, but high debt levels are concerning. The equity ratio is negative, reflecting financial instability. Return on Equity is irrelevant due to negative equity, further emphasizing financial distress.18
Very Negative
Cash Flow
Cash flow analysis shows Boeing struggling with negative free cash flow growth and operating cash flow, both indicating poor cash generation. The operating and free cash flow to net income ratios are not favorable, reflecting ongoing cash flow challenges. Financing activities appear to support liquidity, but not sustainably.29
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 69.44B | 66.52B | 77.79B | 66.61B | 62.29B | 58.16B | Gross Profit |
| -1.45B | -1.99B | 7.72B | 3.53B | 3.05B | -5.68B | EBIT |
| -10.16B | -10.71B | -773.00M | -3.52B | -2.87B | -12.77B | EBITDA |
| -7.03B | -7.65B | 2.31B | -510.00M | -207.00M | -10.07B | Net Income Common Stockholders |
| -11.51B | -11.82B | -2.22B | -4.93B | -4.20B | -11.94B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 23.67B | 26.28B | 15.96B | 17.22B | 16.24B | 25.59B | Total Assets |
| 156.49B | 156.36B | 137.01B | 137.10B | 138.55B | 152.14B | Total Debt |
| 53.62B | 54.19B | 52.60B | 57.00B | 58.10B | 63.58B | Net Debt |
| 43.48B | 40.39B | 39.91B | 42.39B | 50.05B | 55.83B | Total Liabilities |
| 159.82B | 160.28B | 154.24B | 152.95B | 153.40B | 170.21B | Stockholders Equity |
| -3.33B | -3.91B | -17.23B | -15.88B | -15.00B | -18.32B |
| Cash Flow | Free Cash Flow | ||||
| -12.76B | -14.40B | 4.43B | 2.29B | -4.40B | -19.71B | Operating Cash Flow |
| -10.33B | -12.08B | 5.96B | 3.51B | -3.42B | -18.41B | Investing Cash Flow |
| -15.76B | -11.97B | -2.44B | 4.37B | 9.32B | -18.37B | Financing Cash Flow |
| 29.33B | 25.21B | -5.49B | -1.27B | -5.60B | 34.95B |
Boeing Technical Analysis
Positive
203.41
Price Trends
175.78
Positive
174.75
Positive
166.97
Positive
Market Momentum
9.53
Negative
69.46
Neutral
72.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BA, the sentiment is Positive. The current price of 203.41 is above the 20-day moving average (MA) of 193.83, above the 50-day MA of 175.78, and above the 200-day MA of 166.97, indicating a bullish trend. The MACD of 9.53 indicates Negative momentum. The RSI at 69.46 is Neutral, neither overbought nor oversold. The STOCH value of 72.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BA.
Boeing Risk Analysis
Boeing disclosed 26 risk factors in its most recent earnings report. Boeing reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our common stock ranks junior to the Mandatory convertible preferred stock with respect to dividends and amounts payable in the event of our liquidation, dissolution or winding-up of our affairs. Q4, 2024
2.
The issuance of common stock upon the closing of the Spirit acquisition and upon conversion of our Mandatory convertible preferred stock, and the possibility of the sale or issuance of our common stock in the future, could cause dilution to the interests of our existing shareholders. Q4, 2024
3.
We may be unable to effectively manage our liquidity, which could adversely affect our business, financial position and results of operations. Q4, 2024
Boeing Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $75.57B | 19.54 | 18.23% | 2.07% | 14.11% | 17.65% | |
77 Outperform | $110.22B | 20.32 | 82.55% | 2.74% | 3.12% | -15.29% | |
73 Outperform | $183.27B | 40.22 | 7.54% | 1.87% | 15.11% | 34.14% | |
71 Outperform | $245.56B | 35.91 | 28.09% | 0.63% | -42.92% | 109.75% | |
70 Outperform | $68.60B | 18.76 | 25.41% | 1.74% | 0.61% | 77.28% | |
64 Neutral | $4.39B | 11.81 | 5.17% | 249.38% | 3.98% | -12.17% | |
52 Neutral | $156.58B | ― | -162.23% | ― | -9.15% | -406.76% |
* Industrials Sector Average
Performance Comparison
BA
Boeing
203.41
31.20
18.12%
GD
General Dynamics
277.03
-13.43
-4.62%
GE
GE Aerospace
230.27
66.11
40.27%
LMT
Lockheed Martin
470.45
15.31
3.36%
NOC
Northrop
472.88
13.57
2.95%
RTX
RTX
134.07
30.30
29.20%
Boeing Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 25.16%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
Boeing reported strong commercial delivery performance and significant contract wins, contributing to improved financial results. However, challenges remain, particularly with tariffs impacting operations in China and increased input costs from supply chain tariffs. The company's proactive efforts to manage these issues reflect a cautiously optimistic outlook.Q1-2025 Updates
Positive Updates
Record Commercial Deliveries
Boeing delivered 130 airplanes in the quarter, exceeding internal plans and reflecting a strong start to the year.
Significant Defense Contract Win
Winning the F-47 program, the world's first sixth-generation fighter, which is expected to secure Boeing's fighter franchise for decades.
Improved Financial Performance
Revenue was $19.5 billion, up 18% year-over-year, driven by higher commercial delivery volume, and core loss per share improved significantly.
Strong Backlog and Orders
Backlog increased to $460 billion, with 221 net orders including significant contracts for the 777-9 and 737-8.
Cash Flow and Inventory Management
Free cash flow usage was better than expectations due to favorable working capital timing and higher delivery volume.
Negative Updates
Challenges with China Market
Retaliatory tariffs have led to difficulties in delivering approximately 50 airplanes planned for China, necessitating potential re-marketing.
Supply Chain Tariff Impact
Input tariffs from suppliers in Japan and Italy due to U.S. tariffs are resulting in increased input costs, though manageable.
Potential Future Tariff Risks
Concerns over expanding tariff-related issues beyond China, which could impact future delivery plans and financial performance.
Seating Certification Issues
Ongoing challenges with seat certification affecting some deliveries, expected to persist throughout the year.
Company Guidance
During Boeing's First Quarter 2025 Earnings Conference Call, the company provided guidance and updates on various key performance metrics and strategic initiatives. Boeing delivered 130 airplanes in the quarter, exceeding internal plans, and reported a revenue of $19.5 billion, up 18% from the previous year. The company is producing 737 aircraft in the low 30s per month and aims to reach a production rate of 38 per month in the near future. The 787 program maintained a production rate of five per month, with a planned increase to seven per month. Boeing's backlog grew to $460 billion, with more than 5,600 airplanes on order. The company's free cash flow was a usage of $2.3 billion, reflecting improved working capital management. Boeing's sale of portions of its digital aviation solutions business is expected to provide a significant cash infusion. In defense, Boeing won the F-47 program, securing its position as a contractor for the sixth-generation fighter. Despite facing challenges such as tariffs impacting delivery to China, Boeing remains optimistic about its recovery plan and production stability, focusing on improving safety, quality, and culture within the company.Boeing Corporate Events
M&A TransactionsBusiness Operations and Strategy
Boeing Sells Digital Aviation Assets to Thoma Bravo
Positive
Apr 24, 2025
On April 22, 2025, Boeing announced a definitive agreement to sell portions of its Digital Aviation Solutions business, including assets like Jeppesen and ForeFlight, to Thoma Bravo for $10.55 billion. This transaction aims to strengthen Boeing’s capital structure and allow the company to focus on its core business operations. The sale is expected to close by the end of 2025, subject to regulatory approval, and is part of Boeing’s strategy to prioritize its investment-grade credit rating while maintaining its commitment to customer needs. Thoma Bravo plans to support the growth of these digital aviation assets through strategic investments and operational best practices.
Executive/Board ChangesShareholder Meetings
Boeing Announces Leadership Changes Ahead of 2025 Meeting
Neutral
Feb 25, 2025
On February 19, 2025, Boeing announced that Stephanie F. Pope no longer held the title of Chief Operating Officer but continues her role as Executive Vice President and CEO of Boeing Commercial Airplanes. Additionally, Sabrina Soussan and the Board of Directors decided she would not stand for re-election at the 2025 Annual Meeting of Shareholders, leading to a reduction in the board’s size.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.