AIRBUS SE (AIR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:AIR - NL0000235190 - Common Stock
206.8 EUR
+0.05 (+0.02%)
Taking everything into account, AIR scores 4 out of 10 in our fundamental rating. AIR was compared to 54 industry peers in the Aerospace & Defense industry. AIR has a medium profitability rating, but doesn't score so well on its financial health evaluation. AIR has a correct valuation and a medium growth rate.
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.
- 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
- AIR has a Return On Assets of 3.91%. This is comparable to the rest of the industry: AIR outperforms 51.85% of its industry peers.
- The Return On Equity of AIR (21.46%) is better than 77.78% of its industry peers.
- The Return On Invested Capital of AIR (6.19%) 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 9.17%.
- 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
- AIR has a Profit Margin of 7.02%. This is comparable to the rest of the industry: AIR outperforms 55.56% of its industry peers.
- AIR's Profit Margin has declined in the last couple of years.
- 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.
- The Gross Margin of AIR (15.54%) is worse than 79.63% 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
- 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.
- The number of shares outstanding for AIR has been increased compared to 5 years ago.
- AIR has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.92 indicates that AIR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of AIR (1.92) is worse than 74.07% 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.
- With a decent Debt to FCF ratio value of 4.85, AIR is doing good in the industry, outperforming 62.96% of the companies in the same industry.
- AIR has a Debt/Equity ratio of 0.54. This is a neutral value indicating AIR is somewhat dependend on debt financing.
- AIR has a Debt to Equity ratio (0.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.74
WACC8.32%
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 has a Current ratio (1.15) which is in line with 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.
- The Quick ratio of AIR (0.43) is worse than 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- AIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.12%, which is quite impressive.
- AIR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.79% yearly.
- AIR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.05%.
- 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
- Based on estimates for the next years, AIR will show a very strong growth in Earnings Per Share. The EPS will grow by 22.51% on average per year.
- 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 Y23.07%
EPS Next 2Y23.27%
EPS Next 3Y22.1%
EPS Next 5Y22.51%
Revenue Next Year7.55%
Revenue Next 2Y9.76%
Revenue Next 3Y10.36%
Revenue Next 5Y10.85%
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
- A Price/Earnings ratio of 27.65 indicates a quite expensive valuation of AIR.
- 88.89% of the companies in the same industry are more expensive than AIR, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of AIR to the average of the S&P500 Index (27.21), we can say AIR is valued inline with the index average.
- AIR is valuated quite expensively with a Price/Forward Earnings ratio of 25.82.
- AIR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AIR is cheaper than 72.22% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, AIR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.65 | ||
| Fwd PE | 25.82 |
4.2 Price Multiples
- AIR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AIR is cheaper than 72.22% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIR indicates a somewhat cheap valuation: AIR is cheaper than 62.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.89 | ||
| EV/EBITDA | 19.19 |
4.3 Compensation for Growth
- The 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 22.10% in the coming years.
PEG (NY)1.2
PEG (5Y)N/A
EPS Next 2Y23.27%
EPS Next 3Y22.1%
5. Dividend
5.1 Amount
- AIR has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.75, AIR pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, AIR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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 46.83% 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.
DP46.83%
EPS Next 2Y23.27%
EPS Next 3Y22.1%
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 23.07% in the next year.