AIRBUS SE (AIR.PA) Stock Fundamental Analysis
EPA:AIR - Euronext Paris - Matif - NL0000235190 - Common Stock - Currency: EUR
Overall AIR gets a fundamental rating of 4 out of 10. We evaluated AIR against 43 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
AIR had a positive operating cash flow in the past year.
AIR had positive earnings in 4 of the past 5 years.
Of the past 5 years AIR 4 years had a positive operating cash flow.
1.2 Ratios
AIR has a Return On Assets (3.35%) which is comparable to the rest of the industry.
AIR has a Return On Equity of 20.14%. This is amongst the best in the industry. AIR outperforms 86.05% of its industry peers.
With a Return On Invested Capital value of 5.12%, AIR is not doing good in the industry: 60.47% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for AIR is below the industry average of 8.70%.
| 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.
In the last couple of years the Profit Margin of AIR has declined.
With a Operating Margin value of 6.88%, AIR perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
In the last couple of years the Operating Margin of AIR has grown nicely.
AIR has a Gross Margin of 15.18%. This is in the lower half of the industry: AIR underperforms 79.07% of its industry peers.
AIR's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for AIR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, AIR has more shares outstanding
AIR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that AIR is in the distress zone and has some risk of bankruptcy.
AIR has a worse Altman-Z score (1.74) than 76.74% 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.
The Debt to FCF ratio of AIR (3.45) is better than 69.77% 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's Debt to Equity ratio of 0.64 is in line compared to the rest of the industry. AIR outperforms 44.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.7
WACC7.28%
2.3 Liquidity
AIR has a Current Ratio of 1.17. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
AIR has a Current ratio (1.17) which is in line with its industry peers.
AIR has a Quick Ratio of 1.17. This is a bad value and indicates that AIR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.50, AIR is not doing good in the industry: 81.40% of the companies in the same industry are doing better.
| 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.
AIR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.79% yearly.
The Revenue has been growing slightly by 5.16% in the past year.
AIR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.36% yearly.
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
The Earnings Per Share is expected to grow by 21.09% on average over the next years. This is a very strong growth
Based on estimates for the next years, AIR will show a quite strong growth in Revenue. The Revenue will grow by 9.30% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.86, AIR can be considered very expensive at the moment.
AIR's Price/Earnings ratio is a bit cheaper when compared to the industry. AIR is cheaper than 76.74% of the companies in the same industry.
AIR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 22.51, which indicates a rather expensive current valuation of AIR.
Based on the Price/Forward Earnings ratio, AIR is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AIR to the average of the S&P500 Index (21.76), we can say AIR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.86 | ||
| Fwd PE | 22.51 |
4.2 Price Multiples
62.79% of the companies in the same industry are more expensive than AIR, based on the Enterprise Value to EBITDA ratio.
69.77% of the companies in the same industry are more expensive than AIR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.61 | ||
| EV/EBITDA | 18.14 |
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)1.26
PEG (5Y)N/A
EPS Next 2Y24.28%
EPS Next 3Y22.29%
5. Dividend
5.1 Amount
AIR has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 1.18, AIR pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, AIR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of AIR grows each year by 11.34%, which is quite nice.
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%
EPA:AIR (7/11/2025, 7:00:00 PM)
183.22
-0.08 (-0.04%)
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 Cap145.16B
Analysts80.8
Price Target184.58 (0.74%)
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)-0.34%
PT rev (3m)-3.41%
EPS NQ rev (1m)-3.12%
EPS NQ rev (3m)-23.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-7.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.86 | ||
| Fwd PE | 22.51 | ||
| P/S | 2.08 | ||
| P/FCF | 27.61 | ||
| P/OCF | 16.08 | ||
| P/B | 6.6 | ||
| P/tB | 29.62 | ||
| EV/EBITDA | 18.14 |
EPS(TTM)5.75
EY3.14%
EPS(NY)8.14
Fwd EY4.44%
FCF(TTM)6.64
FCFY3.62%
OCF(TTM)11.39
OCFY6.22%
SpS88.28
BVpS27.77
TBVpS6.18
PEG (NY)1.26
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 | 1.74 |
F-Score7
WACC7.28%
ROIC/WACC0.7
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%