BAE SYSTEMS PLC (BSP.DE) Stock Fundamental Analysis
Europe - FRA:BSP - GB0002634946 - Common Stock
22.61 EUR
-0.02 (-0.09%)
Taking everything into account, BSP scores 5 out of 10 in our fundamental rating. BSP was compared to 46 industry peers in the Aerospace & Defense industry. BSP has only an average score on both its financial health and profitability. BSP has a correct valuation and a medium 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.
In the past 5 years BSP has always been profitable.
BSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.31%, BSP is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
BSP has a better Return On Equity (17.56%) than 71.74% of its industry peers.
The Return On Invested Capital of BSP (8.14%) is better than 60.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BSP is in line with the industry average of 9.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 17.56% | ||
| ROIC | 8.14% |
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 67.39% of its industry peers.
BSP's Profit Margin has declined in the last couple of years.
BSP has a Operating Margin of 9.05%. This is comparable to the rest of the industry: BSP outperforms 58.70% of its industry peers.
BSP's Operating Margin has been stable in the last couple of years.
BSP has a Gross Margin of 62.97%. This is amongst the best in the industry. BSP outperforms 89.13% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BSP 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.
The debt/assets ratio for BSP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.71 indicates that BSP is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.71, BSP perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
BSP has a debt to FCF ratio of 5.20. This is a neutral value as BSP would need 5.20 years to pay back of all of its debts.
BSP has a better Debt to FCF ratio (5.20) than 65.22% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that BSP is somewhat dependend on debt financing.
The Debt to Equity ratio of BSP (0.87) is worse than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.92
WACC8.87%
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 73.91% of its industry peers.
A Quick Ratio of 0.91 indicates that BSP may have some problems paying its short term obligations.
BSP's Quick ratio of 0.91 is fine compared to the rest of the industry. BSP outperforms 67.39% 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 10.76% 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.
The Revenue has grown by 11.60% in the past year. This is quite good.
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
BSP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.08% yearly.
The Revenue is expected to grow by 5.98% on average over the next years.
EPS Next Y13.34%
EPS Next 2Y12.48%
EPS Next 3Y12.16%
EPS Next 5Y13.08%
Revenue Next Year8.4%
Revenue Next 2Y7.65%
Revenue Next 3Y7.58%
Revenue Next 5Y5.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.57, the valuation of BSP can be described as expensive.
Based on the Price/Earnings ratio, BSP is valued a bit cheaper than 78.26% of the companies in the same industry.
BSP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
The Price/Forward Earnings ratio is 22.95, which indicates a rather expensive current valuation of BSP.
Based on the Price/Forward Earnings ratio, BSP is valued a bit cheaper than 67.39% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, BSP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.57 | ||
| Fwd PE | 22.95 |
4.2 Price Multiples
BSP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BSP is cheaper than 67.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BSP is valued a bit cheaper than 76.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.38 | ||
| EV/EBITDA | 18.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BSP may justify a higher PE ratio.
A more expensive valuation may be justified as BSP's earnings are expected to grow with 12.16% in the coming years.
PEG (NY)2.07
PEG (5Y)3.41
EPS Next 2Y12.48%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
BSP has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
BSP's Dividend Yield is rather good when compared to the industry average which is at 1.16. BSP pays more dividend than 93.48% of the companies in the same industry.
BSP's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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 50.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of BSP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.43%
EPS Next 2Y12.48%
EPS Next 3Y12.16%
FRA:BSP (9/19/2025, 7:00:00 PM)
22.61
-0.02 (-0.09%)
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 Cap67.96B
Analysts78.46
Price Target24.6 (8.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend0.36
Dividend Growth(5Y)6.5%
DP50.43%
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)2.01%
PT rev (3m)17.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.57 | ||
| Fwd PE | 22.95 | ||
| P/S | 2.15 | ||
| P/FCF | 28.38 | ||
| P/OCF | 18.2 | ||
| P/B | 5.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.26 |
EPS(TTM)0.82
EY3.63%
EPS(NY)0.99
Fwd EY4.36%
FCF(TTM)0.8
FCFY3.52%
OCF(TTM)1.24
OCFY5.5%
SpS10.5
BVpS4.32
TBVpS-1.83
PEG (NY)2.07
PEG (5Y)3.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 17.56% | ||
| ROCE | 9.53% | ||
| ROIC | 8.14% | ||
| ROICexc | 9.2% | ||
| ROICexgc | 30.32% | ||
| OM | 9.05% | ||
| PM (TTM) | 7.21% | ||
| GM | 62.97% | ||
| FCFM | 7.59% |
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 Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.2 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 99.06% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 4.22 | ||
| Cash Conversion | 88.72% | ||
| Profit Quality | 105.16% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.71 |
F-Score5
WACC8.87%
ROIC/WACC0.92
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)10.76%
EPS 3Y12.56%
EPS 5Y8.1%
EPS Q2Q%10.97%
EPS Next Y13.34%
EPS Next 2Y12.48%
EPS Next 3Y12.16%
EPS Next 5Y13.08%
Revenue 1Y (TTM)11.6%
Revenue growth 3Y10.46%
Revenue growth 5Y7.53%
Sales Q2Q%9.12%
Revenue Next Year8.4%
Revenue Next 2Y7.65%
Revenue Next 3Y7.58%
Revenue Next 5Y5.98%
EBIT growth 1Y4.73%
EBIT growth 3Y9.01%
EBIT growth 5Y6.75%
EBIT Next Year41.8%
EBIT Next 3Y17.4%
EBIT Next 5Y15.44%
FCF growth 1Y-29.76%
FCF growth 3Y11.64%
FCF growth 5Y19.64%
OCF growth 1Y-15.35%
OCF growth 3Y17.06%
OCF growth 5Y19.7%