Education
About Us
Working with TipRanks
Follow Us
Boeing (BA)
NYSE:BA
Top Page
Boeing
(NYSE:BA)50Neutral
Positive Factors
Financial Strategy
Boeing's sale of Jeppesen is expected to fetch over $7 billion, which would accelerate the company's deleveraging efforts.
Order Demand
ANA orders 18 787-9s and 8 MAX-8s, with additional options for more, indicating strong demand for Boeing's aircraft.
Negative Factors
Supply Chain Issues
A fire at the SPS Technologies fastener facility, a major supplier for Boeing, has caused significant damage and trapped a large shipment, posing potential supply chain issues for Boeing's MAX and 787 programs.
Boeing (BA) vs. S&P 500 (SPY)
Market Cap
$130.99B
Dividend YieldN/A
Average Volume (3M)7.62M
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-14.49%
EPS Growth-399.90%
CountryUS
Employees172,000
SectorIndustrials
Sector Strength66
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-18.33
Shares Outstanding750,074,400
10 Day Avg. Volume7,734,516
30 Day Avg. Volume7,618,020
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.92
Price to Cash Flow (P/CF)-9.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$196.88Price Target Upside23.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
Boeing Business Overview & Revenue Model
Company DescriptionFounded in 1916, The Boeing Co. is the world's largest aerospace company, which manufactures and sells airplanes, rockets, satellites, human space flights and launch systems, and missiles worldwide. It also provides leasing and product support services. Its products include operates through the following segments: Commercial Airplanes; Defense, Space and Security; Global Services; and Boeing Capital.
How the Company Makes MoneyBoeing generates revenue primarily through the sale of commercial and military aircraft, as well as related services. The Commercial Airplanes segment is a major revenue driver, producing and selling commercial jetliners to airlines and leasing companies. The Defense, Space & Security segment provides military aircraft, satellite systems, and defense systems to the U.S. Department of Defense and international customers. The Global Services segment offers aftermarket support, including maintenance, modifications, spare parts, and training for both commercial and defense products. Additionally, Boeing Capital supports the other segments by arranging, structuring, and providing financing solutions. The company's earnings are significantly influenced by large contracts, governmental defense budgets, and long-term partnerships with airlines and defense agencies.
Boeing Financial Statement Overview
Summary
Boeing faces substantial financial challenges, with persistent losses, negative equity, and fluctuating cash flows. Despite some revenue growth and improvements in operational cash flow by 2023, high costs, debt levels, and asset reductions overshadow these positives. Strategic financial adjustments are needed to stabilize and improve the financial outlook.Income Statement
Boeing's income statement reveals consistent challenges, with persistent net losses and negative EBIT, indicating ongoing profitability issues. Revenue showed moderate growth from 2022 to 2023 but declined in 2024. Gross profit margins are negative, reflecting high production costs or operational inefficiencies.25
Negative
Balance Sheet
The balance sheet shows a concerning negative stockholders' equity, indicating financial instability. Although debt levels decreased slightly by 2023, the debt-to-equity ratio remains effectively infinite due to negative equity. The total assets have shrunk significantly by 2024, suggesting asset sales or write-downs.30
Negative
Cash Flow
Boeing's cash flow statement indicates improvement from negative to positive operating cash flow by 2023, yet significant free cash flow challenges remain by 2024. Despite better cash flow from operations in 2023, a negative trajectory in free cash flow by 2024 suggests ongoing cash usage challenges.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 66.52B | 77.79B | 66.61B | 62.29B | 58.16B | Gross Profit |
| -1.99B | 7.72B | 3.53B | 3.05B | -5.68B | EBIT |
| -10.71B | -773.00M | -3.52B | -2.87B | -12.77B | EBITDA |
| -7.65B | 2.31B | -510.00M | -207.00M | -10.07B | Net Income Common Stockholders |
| -11.82B | -2.22B | -4.93B | -4.20B | -11.94B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 26.28B | 15.96B | 17.22B | 16.24B | 25.59B | Total Assets |
| 156.36B | 137.01B | 137.10B | 138.55B | 152.14B | Total Debt |
| 54.19B | 52.60B | 57.00B | 58.10B | 63.58B | Net Debt |
| 40.39B | 39.91B | 42.39B | 50.05B | 55.83B | Total Liabilities |
| 160.28B | 154.24B | 152.95B | 153.40B | 170.21B | Stockholders Equity |
| 7.28B | -17.23B | -15.88B | -15.00B | -18.32B |
| Cash Flow | Free Cash Flow | |||
| -12.08B | 4.43B | 2.29B | -4.40B | -19.71B | Operating Cash Flow |
| -12.08B | 5.96B | 3.51B | -3.42B | -18.41B | Investing Cash Flow |
| -11.97B | -2.44B | 4.37B | 9.32B | -18.37B | Financing Cash Flow |
| 25.21B | -5.49B | -1.27B | -5.60B | 34.95B |
Boeing Technical Analysis
Negative
158.90
Price Trends
176.28
Negative
164.90
Negative
169.22
Negative
Market Momentum
-1.89
Positive
29.10
Positive
9.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BA, the sentiment is Negative. The current price of 158.9 is below the 20-day moving average (MA) of 178.96, below the 50-day MA of 176.28, and below the 200-day MA of 169.22, indicating a bearish trend. The MACD of -1.89 indicates Positive momentum. The RSI at 29.10 is Positive, neither overbought nor oversold. The STOCH value of 9.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BA.
Boeing Risk Analysis
Boeing disclosed 26 risk factors in its most recent earnings report. Boeing reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Boeing Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $67.14B | 16.37 | 27.30% | 1.70% | 4.44% | 110.33% | |
77 Outperform | $171.44B | 36.22 | 7.94% | 1.88% | 17.15% | 58.66% | |
75 Outperform | $68.68B | 18.64 | 17.14% | 2.23% | 12.88% | 13.78% | |
74 Outperform | $105.65B | 20.12 | 84.26% | 2.82% | 5.14% | -19.14% | |
64 Neutral | $12.81B | 16.21 | 11.44% | 0.11% | 0.14% | -5.38% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
50 Neutral | $130.99B | ― | -162.23% | ― | -14.49% | -399.90% |
* Industrials Sector Average
Performance Comparison
BA
Boeing
158.90
-42.10
-20.95%
GD
General Dynamics
250.80
-17.48
-6.52%
LMT
Lockheed Martin
448.82
26.42
6.25%
NOC
Northrop Grumman
463.83
10.56
2.33%
TXT
Textron
70.19
-20.31
-22.44%
RTX
RTX
128.70
40.38
45.72%
Boeing Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -9.28% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging quarter with significant revenue declines and core losses, largely impacted by the IAM work stoppage and defense program charges. Despite these challenges, there are positive signs of production stability, strong demand, and backlog growth, along with record performance in the Global Services segment. Continued focus on stabilizing production and managing defense program risks is critical for recovery.Highlights
737 MAX Production and Stability
Boeing achieved a production rate of 38 737 MAX aircrafts per month, with all three production lines in Renton cycling. The FAA reported significant improvement in Boeing's safety management system, indicating a stable factory.
787 Production Progress
Boeing finished 2024 at a production rate of five 787s per month and plans to further increase this rate. The company has made progress in managing supplier part shortages within established control limits.
Strong Demand and Backlog
Boeing's backlog stands at over $0.5 trillion, with robust demand for core commercial and defense products. The company received significant orders, including 15 KC-46A Tankers and seven P-8A aircraft.
Boeing Global Services Performance
BGS delivered record operating margins of 19.5% in the quarter, with revenue up 6% primarily on higher commercial volume.
Lowlights
Revenue Decline
Total company revenue was $15.2 billion, down 31%, primarily due to lower commercial deliveries associated with the IAM work stoppage.
Core Loss Per Share
Boeing reported a core loss per share of $5.90, reflecting impacts from the IAM work stoppage, defense program charges, and workforce reduction costs.
Defense Program Challenges
Boeing Defense and Space booked a $1.7 billion pre-tax charge due to cost pressures from the KC-46A and T-7A programs, with ongoing challenges in stabilizing fixed price development programs.
Cash Flow Usage
Free cash flow was a use of $4.1 billion in the quarter, impacted by lower commercial deliveries and unfavorable working capital timing.
Company Guidance
During Boeing's Fourth Quarter 2024 Earnings Conference Call, the company provided guidance on several key metrics crucial to their recovery plan. For the 737 MAX, Boeing has sufficient parts inventory to enable production at 38 units per month and aims to increase production rates beyond this, contingent upon meeting agreed-upon key performance indicators (KPIs) with the FAA. The 787 program is stable at a production rate of five per month, with plans to increase once the supply chain demonstrates stability. Boeing's backlog is valued at over $0.5 trillion, illustrating strong demand across their portfolio. The company's financial performance included revenue of $15.2 billion, down 31% year-over-year, with a core loss per share of $5.90. The cash flow impact included a $4.1 billion usage for the quarter. Boeing aims to achieve significant cash flow improvement in 2025, with plans to turn positive in the second half of the year. Additionally, Boeing is committed to maintaining an investment-grade credit rating, having ended the quarter with $26.3 billion in cash and marketable securities, and a debt balance of $53.9 billion.Boeing Corporate Events
Executive/Board ChangesShareholder Meetings
Boeing Announces Leadership Changes Ahead of 2025 Meeting
Neutral
Feb 25, 2025
On February 19, 2025, Boeing announced that Stephanie F. Pope no longer held the title of Chief Operating Officer but continues her role as Executive Vice President and CEO of Boeing Commercial Airplanes. Additionally, Sabrina Soussan and the Board of Directors decided she would not stand for re-election at the 2025 Annual Meeting of Shareholders, leading to a reduction in the board’s size.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.