BAE SYSTEMS PLC (BSP.DE) Stock Fundamental Analysis
FRA:BSP - Deutsche Boerse Ag - GB0002634946 - Common Stock - Currency: EUR
Taking everything into account, BSP scores 5 out of 10 in our fundamental rating. BSP was compared to 41 industry peers in the Aerospace & Defense industry. BSP has an average financial health and profitability rating. BSP is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years BSP has been profitable.
BSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BSP's Return On Assets of 4.94% is fine compared to the rest of the industry. BSP outperforms 78.95% of its industry peers.
BSP has a better Return On Equity (16.34%) than 63.16% of its industry peers.
BSP has a Return On Invested Capital of 7.78%. This is in the better half of the industry: BSP outperforms 60.53% 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 8.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 16.34% | ||
| ROIC | 7.78% |
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
With a decent Profit Margin value of 7.49%, BSP is doing good in the industry, outperforming 76.32% of the companies in the same industry.
BSP's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 9.64%, BSP is doing good in the industry, outperforming 65.79% of the companies in the same industry.
BSP's Operating Margin has been stable in the last couple of years.
BSP has a Gross Margin of 70.27%. This is amongst the best in the industry. BSP outperforms 89.47% of its industry peers.
BSP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.64% | ||
| PM (TTM) | 7.49% | ||
| GM | 70.27% |
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.
BSP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BSP is higher compared to a year ago.
2.2 Solvency
BSP has an Altman-Z score of 2.36. This is not the best score and indicates that BSP is in the grey zone with still only limited risk for bankruptcy at the moment.
BSP's Altman-Z score of 2.36 is fine compared to the rest of the industry. BSP outperforms 63.16% of its industry peers.
The Debt to FCF ratio of BSP is 5.42, which is a neutral value as it means it would take BSP, 5.42 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.42, BSP perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that BSP is somewhat dependend on debt financing.
BSP has a Debt to Equity ratio of 0.87. This is in the lower half of the industry: BSP underperforms 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.78
WACC9.92%
2.3 Liquidity
A Current Ratio of 1.03 indicates that BSP should not have too much problems paying its short term obligations.
BSP has a worse Current ratio (1.03) than 63.16% of its industry peers.
A Quick Ratio of 0.91 indicates that BSP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.91, BSP belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.01% over the past year.
BSP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.80% yearly.
BSP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.01%.
BSP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
EPS 1Y (TTM)6.01%
EPS 3Y5.38%
EPS 5Y6.8%
EPS Q2Q%13.62%
Revenue 1Y (TTM)14.01%
Revenue growth 3Y10.46%
Revenue growth 5Y7.53%
Sales Q2Q%25.09%
3.2 Future
Based on estimates for the next years, BSP will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.53% on average per year.
BSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.50% yearly.
EPS Next Y12.65%
EPS Next 2Y11.5%
EPS Next 3Y10.11%
EPS Next 5Y11.53%
Revenue Next Year9.3%
Revenue Next 2Y7.8%
Revenue Next 3Y6.97%
Revenue Next 5Y6.5%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.94, which indicates a rather expensive current valuation of BSP.
Based on the Price/Earnings ratio, BSP is valued a bit cheaper than 73.68% of the companies in the same industry.
BSP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 20.79, BSP is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BSP indicates a somewhat cheap valuation: BSP is cheaper than 68.42% of the companies listed in the same industry.
BSP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 20.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BSP is on the same level as its industry peers.
76.32% 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 | 24.03 | ||
| EV/EBITDA | 17 |
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.
PEG (NY)1.97
PEG (5Y)3.67
EPS Next 2Y11.5%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
BSP has a Yearly Dividend Yield of 2.02%.
Compared to an average industry Dividend Yield of 1.20, BSP pays a better dividend. On top of this BSP pays more dividend than 92.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, BSP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
On average, the dividend of BSP grows each year by 6.50%, which is quite nice.
Dividend Growth(5Y)6.5%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BSP pays out 49.51% of its income as dividend. 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.
DP49.51%
EPS Next 2Y11.5%
EPS Next 3Y10.11%
FRA:BSP (3/7/2025, 7:00:00 PM)
18.955
-0.82 (-4.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners70.53%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap56.99B
Analysts77.5
Price Target18.5 (-2.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend0.37
Dividend Growth(5Y)6.5%
DP49.51%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.78%
PT rev (3m)3.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.24%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 20.79 | ||
| P/S | 1.95 | ||
| P/FCF | 24.03 | ||
| P/OCF | 15.8 | ||
| P/B | 4.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17 |
EPS(TTM)0.76
EY4.01%
EPS(NY)0.91
Fwd EY4.81%
FCF(TTM)0.79
FCFY4.16%
OCF(TTM)1.2
OCFY6.33%
SpS9.71
BVpS4.45
TBVpS-1.89
PEG (NY)1.97
PEG (5Y)3.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 16.34% | ||
| ROCE | 9.1% | ||
| ROIC | 7.78% | ||
| ROICexc | 8.79% | ||
| ROICexgc | 28.95% | ||
| OM | 9.64% | ||
| PM (TTM) | 7.49% | ||
| GM | 70.27% | ||
| FCFM | 8.12% |
ROA(3y)5.33%
ROA(5y)5.43%
ROE(3y)16.2%
ROE(5y)20.05%
ROIC(3y)8.62%
ROIC(5y)8.6%
ROICexc(3y)10.37%
ROICexc(5y)10.33%
ROICexgc(3y)36.39%
ROICexgc(5y)39.39%
ROCE(3y)10.09%
ROCE(5y)10.07%
ROICexcg growth 3Y-7.69%
ROICexcg growth 5Y-4.95%
ROICexc growth 3Y-3.67%
ROICexc growth 5Y-3.08%
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%
F-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.42 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 115.19% | ||
| Cap/Sales | 4.23% | ||
| Interest Coverage | 5.65 | ||
| Cash Conversion | 92.75% | ||
| Profit Quality | 108.37% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.36 |
F-Score5
WACC9.92%
ROIC/WACC0.78
Cap/Depr(3y)105.99%
Cap/Depr(5y)90.56%
Cap/Sales(3y)3.94%
Cap/Sales(5y)3.33%
Profit Quality(3y)142.34%
Profit Quality(5y)118.6%
High Growth Momentum
Growth
EPS 1Y (TTM)6.01%
EPS 3Y5.38%
EPS 5Y6.8%
EPS Q2Q%13.62%
EPS Next Y12.65%
EPS Next 2Y11.5%
EPS Next 3Y10.11%
EPS Next 5Y11.53%
Revenue 1Y (TTM)14.01%
Revenue growth 3Y10.46%
Revenue growth 5Y7.53%
Sales Q2Q%25.09%
Revenue Next Year9.3%
Revenue Next 2Y7.8%
Revenue Next 3Y6.97%
Revenue Next 5Y6.5%
EBIT growth 1Y2.64%
EBIT growth 3Y9.01%
EBIT growth 5Y6.75%
EBIT Next Year37.17%
EBIT Next 3Y16.1%
EBIT Next 5Y11.8%
FCF growth 1Y-32.64%
FCF growth 3Y11.64%
FCF growth 5Y19.64%
OCF growth 1Y-20.81%
OCF growth 3Y17.06%
OCF growth 5Y19.7%