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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
The Boeing Company (XNYS:BA) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
BA
Name:
THE BOEING COMPANY (XNYS:BA)
Sector:
- 3565000.00K
Industry:
Aerospace & Defense
CEO:
Mr. David Calhoun
Total Employees:
142,000
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 88.00% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF THE BOEING COMPANY(BA) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND AEROSPACE & DEFENSE INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
151.82
One Month Price Target:
$152.97
Six Month Price Target :
$158.74
Likely Price in One Year's Time:
Ticker:
$165.65
Likely Trading Range Today Under (Normal Volatility)
$150.74
Price Upper limit ($) :
$152.76
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$139.54
This week:
$124.36
This month :
$96.89
Other Primary facts
Market Cap:
90.49B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
593.81M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
24.32%
-23.85%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$208.88
$183.10
$94.76
$120.54
Medium risk (<10%) entry points
Buy Call
Sell Call
$174.71
Buy Put:
Sell Put:
$169.20
$128.86
$134.44
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
BA
Sharpe Ratio:
-1.37%
Comparison:
BA, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -226.34% lower than the industry
& is -160.14% lower than the market/S&P 500 average
Average Returns/Yield of
BA
Daily returns:
-0.04%
Weekly returns:
-0.22%
Monthly returns:
-0.90%
Yearly returns:
10.44%
Comparison of returns:
Average annual returns/yield (last 3 years) is -203.07% below industry average
Classification:
BA, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.8
Statistical test of Returns:
BA has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.92%
Weekly Volatility:
8.76%
Monthly Volatility:
17.52%
Yearly Volatility:
60.69%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.38%
Volatility in last five trading days has been -64.86% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-8.09%
Weekly VaR:
-18.09%
Monthly VaR:
-36.18%
How Much Can the price of
BA
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-33%
Worst case (decline):
>85%
This translates to price declining to:
$102.45
This translates to price declining to:
$22.77
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
BA is a 155.35% riskier investment compared to the market/S&P 500 & is 118.76% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 24.05% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
BA
Beta in relation to market/S&P 500--1.36
Expected beta in 1 year's time:
0.934
Expected beta in 3 year's time:
1.321
Unlevered (debt free) Beta:
-0.703
Beta in relation to Nasdaq (XNAS):
1.204
Beta in relation to all global stocks::
1.143
Beta Comparison & Analysis
Beta of competitors/peers::
1.041
Beta is 30.21% higher than peers
Average Industry Beta:
1.007
Beta is 34.64% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
26.34%
Sustainable growth rate is 32.17% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.232
Alpha is -5978.54% below industry average alpha yield
Alpha is -1477% below the market average
Analysis of Cost of Capital of
BA
Equity cost of capital:
0.124
Equity cost of capital is 23.78% above industry mean WACC
Unlevered (without debt) cost of capital:
-6.45%
Before-tax cost of debt:
4.56%
After-tax cost of debt:
3.60%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
3.60%
WACC is 9.13% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$102.83
Revenue growth rate per share of (3Y):
-5.9
Annual revenue growth rate is -142.31% below industry average
EPS:
-$8.29
Expected Annual growth rate of EPS (3Y):
85.51%
Expected future EPS growth rate is 1030.69% higher than the Aerospace & Defense industry
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: -100.00%
Equity growth rate per share is 57457.59% higher than the industry
Debt per share
$92.87
EBITDA per share
-$2.13
Valuation Analysis Today of
BA
P/E Ratio:
0
P/E Ratio of Competitors/Peers:
20.12
P/E ratio is -100.00% lower than main peers & is higher than the industry
-
BA is -138.97% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $36.63
Present value of the expected future dividends only: $33.05
P/S (Price to Sales ratio):
1.48
Price to sales ratio is -84.47% below the industry mean
P/B (Price to book value ratio):
-5.9
-
-
Net income growth rate (3Y):
-140.94%
Net income growth rate is -4755.35% lower than the industry average net income growth rate
Dividend Analysis
-
Dividend yeild: 2.71%
Previous Dividend: $2.06
Previous adjusted dividend: $2.06
Previous Dividend: $4.11
-
-
Average dividend payment (long-term): $2.06
Average dividend increase/decrease (growth rate) % per period: 0.00%
-
-
-
Previous dividend payment date: 03/06/2020
Previous dividend record date: 14/02/2020
Previous dividend declaration date: 16/12/2019
Dividend History:
2020-02-13--$2.06
--$0.00
--$0.00
2019-11-07--$2.06
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
-358.16%
Net debt to equity ratio:
-326.87%
Debt to assets ratio:
40.61%
Net debt to assets ratio:
37.06%
Debt-to-asset ratio is -24.32% below industry average
Ability to repay debt:
Interest coverage ratio:
-0.48
Interest coverage ratio is -105.78% less than industry average
Looking forward:
Debt growth rate:
-8.58%
Annual debt growth is -109% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.71%
Analysis of Key Statistics
Correlation of price movement with the market:
0.651
Statistical significance of correlation:
BA has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.541
Stock price is 20.22% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.541
Correlation of price movement with Nasdaq (^IXIC):
0.032
Covariance of price movement with the market:
0.072
Kurtosis
8.925
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.331
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
BA
Gross Profit Margin Ratio:
11%
Operating Profit Margin Ratio:
-6.53%
Operating profit margin is -98.69% lower than the industry
Net Profit Margin Ratio:
11%
Effective Tax Rate:
18.23%
Effective tax rate is -23.20% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
31.72%
Return on equity (ROE) is 300.47% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-3.60%
Return on assets (ROA) is -184.21% lower than the industry
Financial Leverage:
1.7x
Current Ratio:
1.3
Current ratio is -59.01% below industry average
Cash Conversion Cycle (days):
129.3
Cash conversion cycle is -77.55% below industry average
The remaining useful life of property plant & equipment is: 3.5 years
Stock based compensation to net income ratio:
-4.16%
In-depth Efficiency Analysis
Revenue generated per employee:
430.0K
Each employee generates 25% more revenue than industry average revenue per employee
EBITDA generated per employee:
- 8.9K
Each employee generates -124% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 34.4K
Each employee generates -635% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 25.1K
Each employee generates 981% more free cash flow than industry average revenue per employee
Assets/Capital per employee
209.8K
Each employee generates 981% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -9.17%
Growth rate in R&D investment/expenditure is 5176.89% higher than the industry
Competitors/Peer firms of
BA
CATERPILLAR INC. (XNYS:CAT)
RAYTHEON TECHNOLOGIES CORPORATION (XNYS:RTX)
DEERE & COMPANY (XNYS:DE)
HONEYWELL INTERNATIONAL INC. (XNAS:HON)
3M COMPANY (XNYS:MMM)
LOCKHEED MARTIN CORPORATION (XNYS:LMT)
UNION PACIFIC CORPORATION (XNYS:UNP)
Canadian National Railway Company (XNYS:CNI)
Itway SpA (XMIL:ITW)
Current Analyst Ratings
Strong buy�29%
Buy�29%
Hold�46%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
61.06B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
59.11B
1.95B
2.38B
3.99B
3.99B
-
-
6.37B
-
2.63B
2.09B
- 1265000.00K
- 3988000.00K
- 4884000.00K
- 6079000.00K
- 1108000.00K
- 4884000.00K
Statement of Cash Flow
Date:
Period:
486.00M
Differed Income Tax :
-
Stock Based Compensation :
203.00M
Change in Working Capital :
- 3286000.00K
Accounts Receivables:
237.00M
Other Working Capital:
- 1255000.00K
Other Non-Cash Items:
623.00M
Net Cash Provided by Operating Activities:
- 3216000.00K
Investments in PP&E:
- 349000.00K
Net Acquisitions:
-
Purchases of Investments:
- 1732000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
7.41B
4.87B
12.28B
11.56B
79.82B
2.36B
106.01B
10.76B
8.07B
2.49B
992.00M
91.00M
7.39B
29.79B
-
135.80B
8.78B
2.59B
-
52.46B
17.86B
81.69B
55.15B
14.07B
69.38B
-
151.07B
5.06B
33.19B
- 11370000.0K
-
March 31, 2022 at 6:00:00 AM
65.48B
- 15398000.00K
135.67B
5.87B
57.74B
50.3B
5.04B
9.00M
2.97B
- 396000.00K
-
-
-
-
- 396000.00K
- 3000.00K
- 695000.00K
7.41B
8.10B
- 3216000.00K
- 349000.00K
- 3565000.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
BA
2023
2024
2025
2026
2027
$166.48
$73.73
$80.44
$87.77
$95.77