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 43 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of BSP while its profitability can be described as average. While showing a medium growth rate, BSP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BSP had positive earnings in the past year.
BSP had a positive operating cash flow in the past year.
BSP had positive earnings in each of the past 5 years.
In the past 5 years BSP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BSP (4.94%) is better than 69.77% of its industry peers.
BSP has a better Return On Equity (16.34%) than 65.12% of its industry peers.
The Return On Invested Capital of BSP (7.78%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for BSP is in line with the industry average of 8.70%.
| 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
The Profit Margin of BSP (7.49%) is better than 72.09% of its industry peers.
In the last couple of years the Profit Margin of BSP has declined.
BSP has a better Operating Margin (9.64%) than 65.12% of its industry peers.
In the last couple of years the Operating Margin of BSP has remained more or less at the same level.
BSP's Gross Margin of 70.27% is amongst the best of the industry. BSP outperforms 90.70% 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 | 9.64% | ||
| 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.
The number of shares outstanding for BSP has been reduced compared to 5 years ago.
BSP has a worse debt/assets ratio than last year.
2.2 Solvency
BSP has an Altman-Z score of 2.57. 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.
The Altman-Z score of BSP (2.57) is comparable to the rest of the industry.
BSP has a debt to FCF ratio of 5.42. This is a neutral value as BSP would need 5.42 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.42, BSP perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
BSP has a Debt/Equity ratio of 0.87. This is a neutral value indicating BSP is somewhat dependend on debt financing.
BSP's Debt to Equity ratio of 0.87 is on the low side compared to the rest of the industry. BSP is outperformed by 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.85
WACC9.17%
2.3 Liquidity
BSP has a Current Ratio of 1.03. This is a normal value and indicates that BSP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BSP (1.03) is worse than 74.42% of its industry peers.
BSP has a Quick Ratio of 1.03. This is a bad value and indicates that BSP is not financially healthy enough and could expect problems in meeting its short term obligations.
BSP's Quick ratio of 0.91 is fine compared to the rest of the industry. BSP outperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.33% over the past year.
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 14.01%.
Measured over the past years, BSP shows a small growth in Revenue. The Revenue has been growing by 7.53% on average per year.
EPS 1Y (TTM)8.33%
EPS 3Y12.56%
EPS 5Y8.1%
EPS Q2Q%10.57%
Revenue 1Y (TTM)14.01%
Revenue growth 3Y10.46%
Revenue growth 5Y7.53%
Sales Q2Q%35.05%
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 11.14% on average per year.
The Revenue is expected to grow by 5.92% on average over the next years.
EPS Next Y13.81%
EPS Next 2Y12.27%
EPS Next 3Y11.6%
EPS Next 5Y11.14%
Revenue Next Year9.13%
Revenue Next 2Y7.79%
Revenue Next 3Y7.35%
Revenue Next 5Y5.92%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.00 indicates a quite expensive valuation of BSP.
79.07% of the companies in the same industry are more expensive than BSP, based on the Price/Earnings ratio.
BSP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 24.50, BSP is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as BSP.
When comparing the Price/Forward Earnings ratio of BSP to the average of the S&P500 Index (21.76), we can say BSP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28 | ||
| Fwd PE | 24.5 |
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.
62.79% 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 | 28.53 | ||
| EV/EBITDA | 19.74 |
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)2.03
PEG (5Y)3.46
EPS Next 2Y12.27%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
BSP has a Yearly Dividend Yield of 1.76%.
Compared to an average industry Dividend Yield of 1.18, BSP pays a better dividend. On top of this BSP pays more dividend than 86.05% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, BSP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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
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 2Y12.27%
EPS Next 3Y11.6%
FRA:BSP (7/8/2025, 7:00:00 PM)
21.84
-0.09 (-0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners77.08%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap65.90B
Analysts78.4
Price Target22.38 (2.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend0.36
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)13.74%
PT rev (3m)10.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28 | ||
| Fwd PE | 24.5 | ||
| P/S | 2.32 | ||
| P/FCF | 28.53 | ||
| P/OCF | 18.76 | ||
| P/B | 5.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.74 |
EPS(TTM)0.78
EY3.57%
EPS(NY)0.89
Fwd EY4.08%
FCF(TTM)0.77
FCFY3.51%
OCF(TTM)1.16
OCFY5.33%
SpS9.43
BVpS4.32
TBVpS-1.84
PEG (NY)2.03
PEG (5Y)3.46
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 | 2.57 |
F-Score5
WACC9.17%
ROIC/WACC0.85
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)8.33%
EPS 3Y12.56%
EPS 5Y8.1%
EPS Q2Q%10.57%
EPS Next Y13.81%
EPS Next 2Y12.27%
EPS Next 3Y11.6%
EPS Next 5Y11.14%
Revenue 1Y (TTM)14.01%
Revenue growth 3Y10.46%
Revenue growth 5Y7.53%
Sales Q2Q%35.05%
Revenue Next Year9.13%
Revenue Next 2Y7.79%
Revenue Next 3Y7.35%
Revenue Next 5Y5.92%
EBIT growth 1Y2.64%
EBIT growth 3Y9.01%
EBIT growth 5Y6.75%
EBIT Next Year41.8%
EBIT Next 3Y17.4%
EBIT Next 5Y15.39%
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%