Fundamental Analysis
Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see BOEING makes a margin of 20% on Gross Level and about 11% on Net level This means that out of $1 that it makes $0.11 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see BOEING grew at an good rate of 6.5% in the revenue and the net profit figures grew by 63%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see BOEING makes a Return on Assets of 9% and Return of Equity of 763% which is pretty good.
Here we see that BOEING scores high on each and every one of the parameters that we have selected when compared to our reasonable barriers that we have kept.
Given the very low amount of shareholder equity that is tied up by the company, it gives rise to an enormous Return on Equity. But the Debt to Equity looks very bad and hence we would say its probably better to stay away from this one when combined with the poor Revenue growth.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by BOEING to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
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