AIRBUS SE (AIR.DE) Stock Fundamental Analysis
FRA:AIR - Deutsche Boerse Ag - NL0000235190 - Common Stock - Currency: EUR
Overall AIR gets a fundamental rating of 4 out of 10. We evaluated AIR against 45 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of AIR while its profitability can be described as average. AIR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AIR was profitable.
AIR had a positive operating cash flow in the past year.
AIR had positive earnings in 4 of the past 5 years.
AIR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AIR has a Return On Assets (3.35%) which is in line with its industry peers.
AIR's Return On Equity of 20.14% is fine compared to the rest of the industry. AIR outperforms 80.00% of its industry peers.
AIR has a Return On Invested Capital of 5.12%. This is in the lower half of the industry: AIR underperforms 64.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AIR is below the industry average of 8.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 20.14% | ||
| ROIC | 5.12% |
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
The Profit Margin of AIR (6.33%) is comparable to the rest of the industry.
AIR's Profit Margin has declined in the last couple of years.
AIR has a Operating Margin (6.88%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AIR has grown nicely.
Looking at the Gross Margin, with a value of 15.18%, AIR is doing worse than 82.22% of the companies in the same industry.
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 | 6.88% | ||
| PM (TTM) | 6.33% | ||
| GM | 15.18% |
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
AIR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AIR has about the same amout of shares outstanding than it did 1 year ago.
AIR has more shares outstanding than it did 5 years ago.
AIR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that AIR is in the distress zone and has some risk of bankruptcy.
AIR's Altman-Z score of 1.72 is on the low side compared to the rest of the industry. AIR is outperformed by 75.56% of its industry peers.
AIR has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as AIR would need 3.45 years to pay back of all of its debts.
AIR has a better Debt to FCF ratio (3.45) than 68.89% of its industry peers.
AIR has a Debt/Equity ratio of 0.64. This is a neutral value indicating AIR is somewhat dependend on debt financing.
AIR has a Debt to Equity ratio (0.64) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.72
WACC7.15%
2.3 Liquidity
A Current Ratio of 1.17 indicates that AIR should not have too much problems paying its short term obligations.
AIR's Current ratio of 1.17 is in line compared to the rest of the industry. AIR outperforms 44.44% of its industry peers.
A Quick Ratio of 0.50 indicates that AIR may have some problems paying its short term obligations.
AIR has a Quick ratio of 0.50. This is amonst the worse of the industry: AIR underperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The earnings per share for AIR have decreased by -4.33% in the last year.
Measured over the past years, AIR shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.79% on average per year.
Looking at the last year, AIR shows a small growth in Revenue. The Revenue has grown by 5.16% in the last year.
The Revenue has been decreasing by -0.36% on average over the past years.
EPS 1Y (TTM)-4.33%
EPS 3Y-0.06%
EPS 5Y-2.79%
EPS Q2Q%67.61%
Revenue 1Y (TTM)5.16%
Revenue growth 3Y9.9%
Revenue growth 5Y-0.36%
Sales Q2Q%5.55%
3.2 Future
Based on estimates for the next years, AIR will show a very strong growth in Earnings Per Share. The EPS will grow by 21.09% on average per year.
AIR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.30% yearly.
EPS Next Y25.24%
EPS Next 2Y24.28%
EPS Next 3Y22.29%
EPS Next 5Y21.09%
Revenue Next Year8.75%
Revenue Next 2Y10.3%
Revenue Next 3Y10.47%
Revenue Next 5Y9.3%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 30.46, the valuation of AIR can be described as expensive.
Based on the Price/Earnings ratio, AIR is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, AIR is valued at the same level.
The Price/Forward Earnings ratio is 21.51, which indicates a rather expensive current valuation of AIR.
66.67% of the companies in the same industry are more expensive than AIR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. AIR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 21.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AIR.
Based on the Price/Free Cash Flow ratio, AIR is valued a bit cheaper than 68.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.39 | ||
| EV/EBITDA | 17.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AIR's earnings are expected to grow with 22.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y24.28%
EPS Next 3Y22.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, AIR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.20, AIR pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, AIR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 Years3
5.3 Sustainability
AIR pays out 50.00% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of AIR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50%
EPS Next 2Y24.28%
EPS Next 3Y22.29%
FRA:AIR (7/4/2025, 7:00:00 PM)
175.12
-1.62 (-0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners28.47%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap138.74B
Analysts80.8
Price Target184.77 (5.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend2.81
Dividend Growth(5Y)11.34%
DP50%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)58.26%
Min EPS beat(2)12.5%
Max EPS beat(2)104.02%
EPS beat(4)3
Avg EPS beat(4)18.17%
Min EPS beat(4)-58.43%
Max EPS beat(4)104.02%
EPS beat(8)6
Avg EPS beat(8)12.58%
EPS beat(12)9
Avg EPS beat(12)19.67%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.25%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)2.89%
Revenue beat(4)1
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)2.89%
Revenue beat(8)1
Avg Revenue beat(8)-0.55%
Revenue beat(12)4
Avg Revenue beat(12)-0.14%
Revenue beat(16)5
Avg Revenue beat(16)-0.4%
PT rev (1m)-0.28%
PT rev (3m)-1.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 21.51 | ||
| P/S | 1.98 | ||
| P/FCF | 26.39 | ||
| P/OCF | 15.37 | ||
| P/B | 6.31 | ||
| P/tB | 28.32 | ||
| EV/EBITDA | 17.47 |
EPS(TTM)5.75
EY3.28%
EPS(NY)8.14
Fwd EY4.65%
FCF(TTM)6.64
FCFY3.79%
OCF(TTM)11.39
OCFY6.5%
SpS88.28
BVpS27.77
TBVpS6.18
PEG (NY)1.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 20.14% | ||
| ROCE | 6.78% | ||
| ROIC | 5.12% | ||
| ROICexc | 6.85% | ||
| ROICexgc | 10.11% | ||
| OM | 6.88% | ||
| PM (TTM) | 6.33% | ||
| GM | 15.18% | ||
| FCFM | 7.52% |
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)7.87%
ROICexc(5y)6.79%
ROICexgc(3y)12.35%
ROICexgc(5y)10.76%
ROCE(3y)7.48%
ROCE(5y)6.45%
ROICexcg growth 3Y-10.63%
ROICexcg growth 5Y26.95%
ROICexc growth 3Y-8%
ROICexc growth 5Y30.7%
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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 127.04% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.05% | ||
| Profit Quality | 118.67% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 1.72 |
F-Score7
WACC7.15%
ROIC/WACC0.72
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)-4.33%
EPS 3Y-0.06%
EPS 5Y-2.79%
EPS Q2Q%67.61%
EPS Next Y25.24%
EPS Next 2Y24.28%
EPS Next 3Y22.29%
EPS Next 5Y21.09%
Revenue 1Y (TTM)5.16%
Revenue growth 3Y9.9%
Revenue growth 5Y-0.36%
Sales Q2Q%5.55%
Revenue Next Year8.75%
Revenue Next 2Y10.3%
Revenue Next 3Y10.47%
Revenue Next 5Y9.3%
EBIT growth 1Y5.92%
EBIT growth 3Y-1.48%
EBIT growth 5Y38.19%
EBIT Next Year82.55%
EBIT Next 3Y33.9%
EBIT Next 5Y22.54%
FCF growth 1Y94.92%
FCF growth 3Y11.25%
FCF growth 5Y21.45%
OCF growth 1Y69.61%
OCF growth 3Y16.85%
OCF growth 5Y14.55%