Spirit AeroSystems Holdings Inc (SPR, Financial) has recently seen a notable uptick in its stock performance. With a current market capitalization of $3.2 billion, the stock price stands at $27.58, reflecting a 1.59% gain over the past week and an impressive 18.91% gain over the past three months. This surge in stock price is particularly interesting when juxtaposed with the company's GF Value of $44.44, which suggests that the stock might still be undervalued despite recent gains. However, the current GF Valuation indicates a Possible Value Trap, advising investors to think twice, a shift from the previous valuation of Modestly Undervalued.
Introduction to Spirit AeroSystems Holdings Inc
Spirit AeroSystems Holdings Inc, operating within the Aerospace & Defense industry, is a leading manufacturer of aerostructures for commercial and military aircraft. As the largest independent supplier, its primary customers include giants like Boeing and Airbus, with Boeing accounting for approximately 60% of its revenue. The company's significant exposure to Boeing's 737 program, which represents nearly half of its revenue, is a critical factor in its financial health. 
Assessing Spirit AeroSystems' Profitability
When it comes to profitability, Spirit AeroSystems holds a Profitability Rank of 6/10, which is a moderate score indicating a fair level of profitability within the industry. The company's Operating Margin stands at -9.30%, which, while negative, fares better than 18.86% of 297 companies in the same sector. The Return on Assets (ROA) is currently at -14.15%, and the Return on Invested Capital (ROIC) is at -10.93%, both metrics suggesting challenges in asset and capital efficiency. However, these figures are still better than a significant portion of the company's peers. Over the past decade, Spirit AeroSystems has managed to be profitable for 6 years, which is more consistent than 42.8% of 264 companies in the industry.
Evaluating Growth Prospects
The company's Growth Rank is currently at a low 1/10, indicating that its growth has been lagging when compared to industry peers. The 3-Year Revenue Growth Rate per Share has decreased by 13.80%, and the 5-Year Revenue Growth Rate per Share has fallen by 9.60%. Despite these declines, the company's Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at an optimistic 20.14%, which is higher than 91.67% of 60 companies in the same space. This suggests potential for recovery and growth in the coming years.
Key Shareholders in Spirit AeroSystems
Notable shareholders in Spirit AeroSystems include Paul Tudor Jones (Trades, Portfolio), holding 275,411 shares, Keeley-Teton Advisors, LLC (Trades, Portfolio) with 165,359 shares, and Catherine Wood (Trades, Portfolio) with 148,349 shares. These shareholders have a combined share percentage of 0.54%, indicating a level of confidence from these investors, which could influence the company's strategic direction and investor sentiment.
Competitive Landscape
Within the Aerospace & Defense sector, Spirit AeroSystems faces competition from companies like AeroVironment Inc (AVAV, Financial) with a market cap of $3.58 billion, Kratos Defense & Security Solutions Inc (KTOS, Financial) valued at $2.41 billion, and AAR Corp (AIR, Financial) with a market cap of $2.44 billion. These competitors have similar market capitalizations, which suggests that Spirit AeroSystems operates in a highly competitive environment with players of comparable size and resources.
Conclusion: Spirit AeroSystems' Market Position and Outlook
In summary, Spirit AeroSystems Holdings Inc has experienced a significant stock price increase of 18.91% over the past three months. Despite the current GF Valuation signaling caution, the company's market position as a key supplier to Boeing and Airbus, combined with its projected revenue growth, presents a potentially favorable business outlook. The profitability metrics, while not stellar, are competitive within the industry, and the presence of significant shareholders could steer the company towards strategic initiatives that enhance value. When compared to its competitors, Spirit AeroSystems' market capitalization is in line with industry peers, suggesting that it is well-positioned to capitalize on future growth opportunities in the aerospace and defense sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
