AIRBUS SE (AIR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:AIR - NL0000235190 - Common Stock
202.4 EUR
-4.4 (-2.13%)
Taking everything into account, AIR scores 4 out of 10 in our fundamental rating. AIR was compared to 53 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 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.
- Of the past 5 years AIR 4 years were profitable.
- Of the past 5 years AIR 4 years had a positive operating cash flow.
1.2 Ratios
- AIR has a Return On Assets of 3.91%. This is comparable to the rest of the industry: AIR outperforms 50.94% of its industry peers.
- AIR's Return On Equity of 21.46% is fine compared to the rest of the industry. AIR outperforms 75.47% of its industry peers.
- AIR has a Return On Invested Capital of 6.19%. This is comparable to the rest of the industry: AIR outperforms 45.28% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AIR 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
- AIR has a Profit Margin (7.02%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of AIR has declined.
- AIR's Operating Margin of 7.82% is in line compared to the rest of the industry. AIR outperforms 45.28% of its industry peers.
- In the last couple of years the Operating Margin of AIR has grown nicely.
- The Gross Margin of AIR (15.54%) is worse than 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.
- 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
- 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.
- AIR's Altman-Z score of 1.92 is on the low side compared to the rest of the industry. AIR is outperformed by 71.70% of its industry peers.
- AIR has a debt to FCF ratio of 4.85. This is a neutral value as AIR would need 4.85 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.85, AIR is in the better half of the industry, outperforming 62.26% of the companies in the same industry.
- A Debt/Equity ratio of 0.54 indicates that AIR is somewhat dependend on debt financing.
- AIR's Debt to Equity ratio of 0.54 is in line compared 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 | 1.92 |
ROIC/WACC0.73
WACC8.45%
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.
- 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 0.43, AIR is not doing good in the industry: 86.79% of the companies in the same industry are doing better.
| 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.
- 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.
- The Revenue has been growing slightly by 7.05% 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)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
- The Earnings Per Share is expected to grow by 22.51% on average over the next years. This is a very strong growth
- 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.
- 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 27.06 indicates a quite expensive valuation of AIR.
- Based on the Price/Earnings ratio, AIR is valued cheaper than 86.79% of the companies in the same industry.
- AIR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 25.34, the valuation of AIR can be described as expensive.
- AIR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AIR is cheaper than 69.81% of the companies in the same industry.
- AIR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.06 | ||
| Fwd PE | 25.34 |
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.
- AIR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AIR is cheaper than 62.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.92 | ||
| EV/EBITDA | 19.19 |
4.3 Compensation for Growth
- AIR's 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 21.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
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%.
- Compared to an average industry Dividend Yield of 0.74, AIR pays a better dividend. On top of this AIR pays more dividend than 84.91% of the companies listed 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
- 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
- 46.83% of the earnings are spent on dividend by AIR. This is a bit on the high side, but may be sustainable.
- AIR's earnings are growing more than its dividend. This makes the dividend growth 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.