AIRBUS SE (AIR.PA) Stock Fundamental Analysis
EPA:AIR - Euronext Paris - Matif - NL0000235190 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to AIR. AIR was compared to 40 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AIR was profitable.
In the past year AIR had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.28%, AIR is in line with its industry, outperforming 55.00% of the companies in the same industry.
AIR has a Return On Equity of 21.59%. This is amongst the best in the industry. AIR outperforms 87.50% of its industry peers.
AIR's Return On Invested Capital of 5.44% is in line compared to the rest of the industry. AIR outperforms 47.50% of its industry peers.
AIR had an Average Return On Invested Capital over the past 3 years of 5.64%. This is below the industry average of 8.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 21.59% | ||
| 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's Profit Margin of 6.11% is in line compared to the rest of the industry. AIR outperforms 57.50% of its industry peers.
In the last couple of years the Profit Margin of AIR has declined.
AIR has a Operating Margin of 7.16%. This is comparable to the rest of the industry: AIR outperforms 47.50% of its industry peers.
AIR's Operating Margin has improved in the last couple of years.
AIR has a Gross Margin of 15.42%. This is in the lower half of the industry: AIR underperforms 70.00% of its industry peers.
AIR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.16% | ||
| PM (TTM) | 6.11% | ||
| 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
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.
AIR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AIR has an improved debt to assets ratio.
2.2 Solvency
AIR has an Altman-Z score of 1.55. This is a bad value and indicates that AIR is not financially healthy and even has some risk of bankruptcy.
AIR has a worse Altman-Z score (1.55) than 67.50% 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.
The Debt to FCF ratio of AIR (4.86) is better than 62.50% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that 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 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.74
WACC7.31%
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 45.00% of its industry peers.
AIR has a Quick Ratio of 1.15. 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 0.52, AIR is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| 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 -17.40%.
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 5.78% in the last year.
The Revenue has been decreasing by -0.36% on average over the past years.
EPS 1Y (TTM)-17.4%
EPS 3Y-0.06%
EPS 5Y-2.79%
EPS Q2Q%32.89%
Revenue 1Y (TTM)5.78%
Revenue growth 3Y9.9%
Revenue growth 5Y-0.36%
Sales Q2Q%8%
3.2 Future
AIR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.12% yearly.
Based on estimates for the next years, AIR will show a quite strong growth in Revenue. The Revenue will grow by 9.34% on average per year.
EPS Next Y25.24%
EPS Next 2Y24.28%
EPS Next 3Y22.29%
EPS Next 5Y21.12%
Revenue Next Year9.92%
Revenue Next 2Y11.04%
Revenue Next 3Y11.18%
Revenue Next 5Y9.34%
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 26.10, AIR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AIR indicates a somewhat cheap valuation: AIR is cheaper than 72.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.64. AIR is around the same levels.
A Price/Forward Earnings ratio of 20.84 indicates a rather expensive valuation of AIR.
Based on the Price/Forward Earnings ratio, AIR is valued a bit cheaper than 67.50% of the companies in the same industry.
AIR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 20.84 |
4.2 Price Multiples
77.50% of the companies in the same industry are more expensive than AIR, based on the Enterprise Value to EBITDA ratio.
AIR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.19 | ||
| EV/EBITDA | 13.77 |
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)1.03
PEG (5Y)N/A
EPS Next 2Y24.28%
EPS Next 3Y22.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, AIR has a reasonable but not impressive dividend return.
AIR's Dividend Yield is rather good when compared to the industry average which is at 1.37. AIR pays more dividend than 92.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, AIR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 Years2
5.3 Sustainability
AIR pays out 52.34% 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.
DP52.34%
EPS Next 2Y24.28%
EPS Next 3Y22.29%
EPA:AIR (4/24/2025, 4:47:16 PM)
137.54
-1.3 (-0.94%)
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 Cap108.97B
Analysts79.2
Price Target191.09 (38.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend2.81
Dividend Growth(5Y)11.34%
DP52.34%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.54%
Min EPS beat(2)12.5%
Max EPS beat(2)14.58%
EPS beat(4)2
Avg EPS beat(4)-10.28%
Min EPS beat(4)-58.43%
Max EPS beat(4)14.58%
EPS beat(8)6
Avg EPS beat(8)6.73%
EPS beat(12)9
Avg EPS beat(12)21.31%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-0.85%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)-0.37%
Revenue beat(8)1
Avg Revenue beat(8)-0.51%
Revenue beat(12)3
Avg Revenue beat(12)-0.47%
Revenue beat(16)5
Avg Revenue beat(16)-0.54%
PT rev (1m)3.89%
PT rev (3m)13.42%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)-47.27%
EPS NY rev (1m)-4.16%
EPS NY rev (3m)-7.55%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-8.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 20.84 | ||
| P/S | 1.57 | ||
| P/FCF | 29.19 | ||
| P/OCF | 14.72 | ||
| P/B | 5.56 | ||
| P/tB | 44.9 | ||
| EV/EBITDA | 13.77 |
EPS(TTM)5.27
EY3.83%
EPS(NY)6.6
Fwd EY4.8%
FCF(TTM)4.71
FCFY3.43%
OCF(TTM)9.34
OCFY6.79%
SpS87.38
BVpS24.75
TBVpS3.06
PEG (NY)1.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 21.59% | ||
| ROCE | 7.21% | ||
| ROIC | 5.44% | ||
| ROICexc | 7.16% | ||
| ROICexgc | 10.68% | ||
| OM | 7.16% | ||
| PM (TTM) | 6.11% | ||
| 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)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 Turnover0.54
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 | 88.21% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.55 |
F-Score7
WACC7.31%
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)-17.4%
EPS 3Y-0.06%
EPS 5Y-2.79%
EPS Q2Q%32.89%
EPS Next Y25.24%
EPS Next 2Y24.28%
EPS Next 3Y22.29%
EPS Next 5Y21.12%
Revenue 1Y (TTM)5.78%
Revenue growth 3Y9.9%
Revenue growth 5Y-0.36%
Sales Q2Q%8%
Revenue Next Year9.92%
Revenue Next 2Y11.04%
Revenue Next 3Y11.18%
Revenue Next 5Y9.34%
EBIT growth 1Y14.25%
EBIT growth 3Y-1.48%
EBIT growth 5Y38.19%
EBIT Next Year82.4%
EBIT Next 3Y34.84%
EBIT Next 5Y22.49%
FCF growth 1Y16.51%
FCF growth 3Y11.25%
FCF growth 5Y21.45%
OCF growth 1Y18.34%
OCF growth 3Y16.85%
OCF growth 5Y14.55%