AIRBUS SE (AIR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:AIR - NL0000235190 - Common Stock
195.06 EUR
-4.34 (-2.18%)
AIR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 53 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 has a decent growth rate and is not valued too expensively.
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
- With a Return On Assets value of 3.91%, AIR perfoms like the industry average, outperforming 50.94% of the companies in the same industry.
- The Return On Equity of AIR (21.46%) is better than 75.47% of its industry peers.
- AIR has a Return On Invested Capital (6.19%) which is comparable to the rest of the industry.
- AIR had an Average Return On Invested Capital over the past 3 years of 5.64%. This is below the industry average of 9.24%.
- The last Return On Invested Capital (6.19%) for AIR is above the 3 year average (5.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 21.46% | ||
| ROIC | 6.19% |
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
- With a Profit Margin value of 7.02%, AIR perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
- In the last couple of years the Profit Margin of AIR has declined.
- AIR has a Operating Margin (7.82%) which is in line with its industry peers.
- AIR's Operating Margin has improved in the last couple of years.
- AIR's Gross Margin of 15.54% is on the low side compared to the rest of the industry. AIR is outperformed by 79.25% of its industry peers.
- 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 | 7.82% | ||
| PM (TTM) | 7.02% | ||
| GM | 15.54% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIR is destroying value.
- The number of shares outstanding for AIR remains at a similar level compared to 1 year ago.
- The number of shares outstanding for AIR has been increased compared to 5 years ago.
- The debt/assets ratio for AIR has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.89 indicates that AIR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- AIR has a Altman-Z score of 1.89. This is in the lower half of the industry: AIR underperforms 71.70% of its industry peers.
- The Debt to FCF ratio of AIR is 4.85, which is a neutral value as it means it would take AIR, 4.85 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AIR (4.85) is better than 62.26% of its industry peers.
- A Debt/Equity ratio of 0.54 indicates that AIR is somewhat dependend on debt financing.
- AIR has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: AIR outperforms 56.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.73
WACC8.44%
2.3 Liquidity
- A Current Ratio of 1.15 indicates that AIR should not have too much problems paying its short term obligations.
- The Current ratio of AIR (1.15) is comparable to the rest of the industry.
- A Quick Ratio of 0.43 indicates that AIR may have some problems paying its short term obligations.
- AIR's Quick ratio of 0.43 is on the low side compared to the rest of the industry. AIR is outperformed by 86.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 65.12% over the past year.
- The Earnings Per Share has been decreasing by -2.79% on average over the past years.
- The Revenue has been growing slightly by 7.05% in the past year.
- The Revenue has been decreasing by -0.36% on average over the past years.
EPS 1Y (TTM)65.12%
EPS 3Y-0.06%
EPS 5Y-2.79%
EPS Q2Q%36.84%
Revenue 1Y (TTM)7.05%
Revenue growth 3Y9.9%
Revenue growth 5Y-0.36%
Sales Q2Q%13.62%
3.2 Future
- AIR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.51% yearly.
- AIR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.85% yearly.
EPS Next Y22.96%
EPS Next 2Y23.11%
EPS Next 3Y21.94%
EPS Next 5Y22.51%
Revenue Next Year7.55%
Revenue Next 2Y9.76%
Revenue Next 3Y10.36%
Revenue Next 5Y10.85%
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
- The Price/Earnings ratio is 26.08, which means the current valuation is very expensive for AIR.
- Compared to the rest of the industry, the Price/Earnings ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 86.79% of the companies listed in the same industry.
- AIR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 24.42, AIR is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, AIR is valued a bit cheaper than the industry average as 73.58% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of AIR to the average of the S&P500 Index (25.95), we can say AIR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.08 | ||
| Fwd PE | 24.42 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a somewhat cheap valuation: AIR is cheaper than 69.81% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, AIR is valued a bit cheaper than the industry average as 62.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.29 | ||
| EV/EBITDA | 18.51 |
4.3 Compensation for Growth
- AIR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as AIR's earnings are expected to grow with 21.94% in the coming years.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y23.11%
EPS Next 3Y21.94%
5. Dividend
5.1 Amount
- AIR has a Yearly Dividend Yield of 1.45%.
- AIR's Dividend Yield is rather good when compared to the industry average which is at 0.74. AIR pays more dividend than 84.91% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, AIR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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
- 46.83% of the earnings are spent on dividend by AIR. 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.
DP46.83%
EPS Next 2Y23.11%
EPS Next 3Y21.94%
AIRBUS SE / AIR.PA FAQ
What is the ChartMill fundamental rating of AIRBUS SE (AIR.PA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AIR.PA.
What is the valuation status of AIRBUS SE (AIR.PA) stock?
ChartMill assigns a valuation rating of 5 / 10 to AIRBUS SE (AIR.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for AIRBUS SE?
AIRBUS SE (AIR.PA) has a profitability rating of 4 / 10.
How financially healthy is AIRBUS SE?
The financial health rating of AIRBUS SE (AIR.PA) is 3 / 10.
What is the expected EPS growth for AIRBUS SE (AIR.PA) stock?
The Earnings per Share (EPS) of AIRBUS SE (AIR.PA) is expected to grow by 22.96% in the next year.