BAE SYSTEMS PLC (BSP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BSP - GB0002634946 - Common Stock
23.2 EUR
-0.01 (-0.04%)
We assign a fundamental rating of 5 out of 10 to BSP. BSP was compared to 53 industry peers in the Aerospace & Defense industry. While BSP has a great profitability rating, there are quite some concerns on its financial health. BSP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year BSP was profitable.
- In the past year BSP had a positive cash flow from operations.
- BSP had positive earnings in each of the past 5 years.
- BSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 5.49%, BSP is doing good in the industry, outperforming 75.47% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 18.24%, BSP is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
- BSP's Return On Invested Capital of 8.70% is fine compared to the rest of the industry. BSP outperforms 60.38% of its industry peers.
- BSP had an Average Return On Invested Capital over the past 3 years of 8.62%. This is in line with the industry average of 9.24%.
- The last Return On Invested Capital (8.70%) for BSP is above the 3 year average (8.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 18.24% | ||
| ROIC | 8.7% |
ROA(3y)5.33%
ROA(5y)5.43%
ROE(3y)16.2%
ROE(5y)20.05%
ROIC(3y)8.62%
ROIC(5y)8.6%
1.3 Margins
- BSP has a Profit Margin of 7.21%. This is in the better half of the industry: BSP outperforms 60.38% of its industry peers.
- In the last couple of years the Profit Margin of BSP has declined.
- BSP has a Operating Margin of 9.05%. This is comparable to the rest of the industry: BSP outperforms 54.72% of its industry peers.
- BSP's Operating Margin has been stable in the last couple of years.
- The Gross Margin of BSP (62.97%) is better than 90.57% of its industry peers.
- In the last couple of years the Gross Margin of BSP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.05% | ||
| PM (TTM) | 7.21% | ||
| GM | 62.97% |
OM growth 3Y-1.32%
OM growth 5Y-0.72%
PM growth 3Y-6.19%
PM growth 5Y-1.61%
GM growth 3Y0.6%
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
- BSP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- BSP has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for BSP has been reduced compared to 5 years ago.
- Compared to 1 year ago, BSP has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.78 indicates that BSP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of BSP (2.78) is comparable to the rest of the industry.
- The Debt to FCF ratio of BSP is 4.53, which is a neutral value as it means it would take BSP, 4.53 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 4.53, BSP is doing good in the industry, outperforming 69.81% of the companies in the same industry.
- BSP has a Debt/Equity ratio of 0.79. This is a neutral value indicating BSP is somewhat dependend on debt financing.
- BSP has a Debt to Equity ratio of 0.79. This is in the lower half of the industry: BSP underperforms 69.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.53 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.83
WACC10.43%
2.3 Liquidity
- BSP has a Current Ratio of 0.96. This is a bad value and indicates that BSP is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.96, BSP is doing worse than 84.91% of the companies in the same industry.
- A Quick Ratio of 0.84 indicates that BSP may have some problems paying its short term obligations.
- BSP has a Quick ratio (0.84) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- BSP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.76%, which is quite good.
- Measured over the past years, BSP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.10% on average per year.
- BSP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.60%.
- The Revenue has been growing slightly by 7.53% on average over the past years.
EPS 1Y (TTM)10.76%
EPS 3Y12.56%
EPS 5Y8.1%
EPS Q2Q%10.97%
Revenue 1Y (TTM)11.6%
Revenue growth 3Y10.46%
Revenue growth 5Y7.53%
Sales Q2Q%9.12%
3.2 Future
- The Earnings Per Share is expected to grow by 12.74% on average over the next years. This is quite good.
- BSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.23% yearly.
EPS Next Y12.15%
EPS Next 2Y12.51%
EPS Next 3Y12.08%
EPS Next 5Y12.74%
Revenue Next Year8.58%
Revenue Next 2Y7.84%
Revenue Next 3Y7.58%
Revenue Next 5Y6.23%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 28.29, the valuation of BSP can be described as expensive.
- 83.02% of the companies in the same industry are more expensive than BSP, based on the Price/Earnings ratio.
- BSP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 23.55, the valuation of BSP can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, BSP is valued a bit cheaper than the industry average as 77.36% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, BSP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 23.55 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BSP is valued a bit cheaper than 67.92% of the companies in the same industry.
- 83.02% of the companies in the same industry are more expensive than BSP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.1 | ||
| EV/EBITDA | 18.39 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BSP does not grow enough to justify the current Price/Earnings ratio.
- BSP has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as BSP's earnings are expected to grow with 12.08% in the coming years.
PEG (NY)2.33
PEG (5Y)3.49
EPS Next 2Y12.51%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
- BSP has a Yearly Dividend Yield of 1.72%.
- Compared to an average industry Dividend Yield of 0.74, BSP pays a better dividend. On top of this BSP pays more dividend than 96.23% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BSP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
- The dividend of BSP is nicely growing with an annual growth rate of 6.50%!
Dividend Growth(5Y)6.5%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 50.43% of the earnings are spent on dividend by BSP. This is a bit on the high side, but may be sustainable.
- BSP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.43%
EPS Next 2Y12.51%
EPS Next 3Y12.08%
BAE SYSTEMS PLC / BSP.DE FAQ
Can you provide the ChartMill fundamental rating for BAE SYSTEMS PLC?
ChartMill assigns a fundamental rating of 5 / 10 to BSP.DE.
What is the valuation status of BAE SYSTEMS PLC (BSP.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to BAE SYSTEMS PLC (BSP.DE). This can be considered as Fairly Valued.
What is the profitability of BSP stock?
BAE SYSTEMS PLC (BSP.DE) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for BSP stock?
The Price/Earnings (PE) ratio for BAE SYSTEMS PLC (BSP.DE) is 28.29 and the Price/Book (PB) ratio is 5.58.
How sustainable is the dividend of BAE SYSTEMS PLC (BSP.DE) stock?
The dividend rating of BAE SYSTEMS PLC (BSP.DE) is 6 / 10 and the dividend payout ratio is 50.43%.