AIRBUS SE (AIR.DE) Stock Fundamental Analysis
FRA:AIR - Deutsche Boerse Ag - NL0000235190 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to AIR. AIR was compared to 38 industry peers in the Aerospace & Defense industry. While AIR is still in line with the averages on profitability rating, there are concerns on its financial health. AIR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
In the past year AIR had a positive cash flow from operations.
Of the past 5 years AIR 4 years were profitable.
AIR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.31%, AIR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Return On Equity of AIR (21.84%) is better than 81.58% of its industry peers.
AIR has a Return On Invested Capital of 5.44%. This is comparable to the rest of the industry: AIR outperforms 42.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AIR is below the industry average of 8.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 21.84% | ||
| ROIC | 5.44% |
ROA(3y)3.38%
ROA(5y)2.61%
ROE(3y)25.26%
ROE(5y)20.54%
ROIC(3y)5.64%
ROIC(5y)4.87%
1.3 Margins
AIR has a Profit Margin (6.19%) which is in line with its industry peers.
In the last couple of years the Profit Margin of AIR has declined.
AIR has a Operating Margin (7.16%) which is comparable to the rest of the industry.
AIR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 15.42%, AIR is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AIR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.16% | ||
| PM (TTM) | 6.19% | ||
| GM | 15.42% |
OM growth 3Y-10.35%
OM growth 5Y38.69%
PM growth 3Y-8.88%
PM growth 5YN/A
GM growth 3Y-5.84%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIR is destroying value.
Compared to 1 year ago, AIR has about the same amount of shares outstanding.
Compared to 5 years ago, AIR has more shares outstanding
The debt/assets ratio for AIR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that AIR is in the distress zone and has some risk of bankruptcy.
AIR has a worse Altman-Z score (1.68) than 65.79% of its industry peers.
The Debt to FCF ratio of AIR is 4.86, which is a neutral value as it means it would take AIR, 4.86 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.86, AIR is doing good in the industry, outperforming 63.16% of the companies in the same industry.
AIR has a Debt/Equity ratio of 0.72. This is a neutral value indicating AIR is somewhat dependend on debt financing.
AIR has a Debt to Equity ratio of 0.72. This is comparable to the rest of the industry: AIR outperforms 44.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.74
WACC7.37%
2.3 Liquidity
AIR has a Current Ratio of 1.15. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
AIR's Current ratio of 1.15 is in line compared to the rest of the industry. AIR outperforms 52.63% of its industry peers.
A Quick Ratio of 0.52 indicates that AIR may have some problems paying its short term obligations.
AIR has a worse Quick ratio (0.52) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
AIR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.96%.
AIR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.77% yearly.
AIR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.78%.
AIR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.36% yearly.
EPS 1Y (TTM)-51.96%
EPS 3Y-0.06%
EPS 5Y-12.77%
EPS Q2Q%-65.1%
Revenue 1Y (TTM)5.78%
Revenue growth 3Y9.9%
Revenue growth 5Y-0.36%
Sales Q2Q%10.32%
3.2 Future
The Earnings Per Share is expected to grow by 34.25% on average over the next years. This is a very strong growth
AIR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.69% yearly.
EPS Next Y124.67%
EPS Next 2Y64.58%
EPS Next 3Y48.67%
EPS Next 5Y34.25%
Revenue Next Year9.92%
Revenue Next 2Y11.04%
Revenue Next 3Y11.18%
Revenue Next 5Y11.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 55.27, the valuation of AIR can be described as expensive.
Based on the Price/Earnings ratio, AIR is valued a bit more expensive than the industry average as 63.16% of the companies are valued more cheaply.
AIR is valuated expensively when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.64 indicates a rather expensive valuation of AIR.
AIR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. AIR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.27 | ||
| Fwd PE | 24.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as AIR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.01 | ||
| EV/EBITDA | 16.55 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AIR's earnings are expected to grow with 48.67% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y64.58%
EPS Next 3Y48.67%
5. Dividend
5.1 Amount
AIR has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
AIR's Dividend Yield is a higher than the industry average which is at 1.22.
Compared to an average S&P500 Dividend Yield of 2.33, AIR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
The dividend of AIR is nicely growing with an annual growth rate of 11.34%!
Dividend Growth(5Y)11.34%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
51.73% of the earnings are spent on dividend by AIR. This is a bit on the high side, but may be sustainable.
AIR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.73%
EPS Next 2Y64.58%
EPS Next 3Y48.67%
FRA:AIR (3/7/2025, 7:00:00 PM)
169.68
-3.44 (-1.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners28.97%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap134.43B
Analysts78.52
Price Target183.91 (8.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend2.81
Dividend Growth(5Y)11.34%
DP51.73%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-27.46%
Min EPS beat(2)-69.49%
Max EPS beat(2)14.58%
EPS beat(4)1
Avg EPS beat(4)-30.77%
Min EPS beat(4)-69.49%
Max EPS beat(4)14.58%
EPS beat(8)5
Avg EPS beat(8)-3.51%
EPS beat(12)8
Avg EPS beat(12)14.47%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)1.21%
Revenue beat(4)1
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)1.21%
Revenue beat(8)2
Avg Revenue beat(8)-0.31%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)-0.44%
PT rev (1m)3.99%
PT rev (3m)11.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.55%
EPS NY rev (1m)1.35%
EPS NY rev (3m)-3.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.27 | ||
| Fwd PE | 24.64 | ||
| P/S | 1.94 | ||
| P/FCF | 36.01 | ||
| P/OCF | 18.16 | ||
| P/B | 6.86 | ||
| P/tB | 55.39 | ||
| EV/EBITDA | 16.55 |
EPS(TTM)3.07
EY1.81%
EPS(NY)6.89
Fwd EY4.06%
FCF(TTM)4.71
FCFY2.78%
OCF(TTM)9.34
OCFY5.51%
SpS87.38
BVpS24.75
TBVpS3.06
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 21.84% | ||
| ROCE | 7.21% | ||
| ROIC | 5.44% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 11.57% | ||
| OM | 7.16% | ||
| PM (TTM) | 6.19% | ||
| GM | 15.42% | ||
| FCFM | 5.39% |
ROA(3y)3.38%
ROA(5y)2.61%
ROE(3y)25.26%
ROE(5y)20.54%
ROIC(3y)5.64%
ROIC(5y)4.87%
ROICexc(3y)8%
ROICexc(5y)6.87%
ROICexgc(3y)12.64%
ROICexgc(5y)10.94%
ROCE(3y)7.48%
ROCE(5y)6.45%
ROICexcg growth 3Y-8.19%
ROICexcg growth 5Y29.01%
ROICexc growth 3Y-6.34%
ROICexc growth 5Y32.1%
OM growth 3Y-10.35%
OM growth 5Y38.69%
PM growth 3Y-8.88%
PM growth 5YN/A
GM growth 3Y-5.84%
GM growth 5Y0.68%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 128.6% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | 6.3 | ||
| Cash Conversion | 94.81% | ||
| Profit Quality | 87.18% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.68 |
F-Score7
WACC7.37%
ROIC/WACC0.74
Cap/Depr(3y)118.47%
Cap/Depr(5y)100.09%
Cap/Sales(3y)4.72%
Cap/Sales(5y)4.28%
Profit Quality(3y)87.6%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-51.96%
EPS 3Y-0.06%
EPS 5Y-12.77%
EPS Q2Q%-65.1%
EPS Next Y124.67%
EPS Next 2Y64.58%
EPS Next 3Y48.67%
EPS Next 5Y34.25%
Revenue 1Y (TTM)5.78%
Revenue growth 3Y9.9%
Revenue growth 5Y-0.36%
Sales Q2Q%10.32%
Revenue Next Year9.92%
Revenue Next 2Y11.04%
Revenue Next 3Y11.18%
Revenue Next 5Y11.69%
EBIT growth 1Y14.25%
EBIT growth 3Y-1.48%
EBIT growth 5Y38.19%
EBIT Next Year85.01%
EBIT Next 3Y33.47%
EBIT Next 5Y25.31%
FCF growth 1Y16.51%
FCF growth 3Y11.25%
FCF growth 5Y21.45%
OCF growth 1Y18.34%
OCF growth 3Y16.85%
OCF growth 5Y14.55%