When you ask me to introduce this company to you I’ll probably fall short of words. To say the least, this company or rather a giant has stayed around for almost a century, has a market cap $94.69 billion and is a favorite stock for the investors. If you still have no clue of what I’m talking about, I introduce you to The Boeing Company (BA). The reason why the stocks have consistently been a hot favorite is due to its non-volatility in share prices, increasing profits for a long period of time and high dividend yield compared to its competitors.
The aero-giant has ranked 30 and 39 on Fortune 500 in 2013 and 2012. The analysts predict that the company is slated to grow in 2014. Already the biggest aerospace company with an asset base of $92.663 billion, turnover of $86.623 billion and an estimated Annual EPS of more than $5.96 per share, Boeing is also looking forward to capitalize on the Asia-Pacific Market, as I had discussed in one of my earlier articles (link: http://www.gurufocus.com/news/254297/boeing-to-capitalize-on-asiapacific-market). The analysts have rated the BA stock a buy.
- Warning! GuruFocus has detected 5 Warning Signs with BA. Click here to check it out.
- BA 15-Year Financial Data
- The intrinsic value of BA
- Peter Lynch Chart of BA
Boeing's Forward P/E looks appealing at around 16.2 which have shown improvement given its trailing P/E is closer to 20. These numbers justify the company's PEG ratio of 1.62 which is slightly high but manageable at this point. Boeing's price to book ratio is about double the industry average, however its 3 year revenue growth average is around 3x that of its competitors.
The financial statements and press releases issued by the company shows that there are bright chances profits and increase in the market share in future. Again the current ratio sits pretty at 1.26. Some analysts, however, are of the view that this is not meeting the level of industry. What the other faction feels is that as long as it is more than one the company’s not headed for any liquidity crisis. The operating margin was also lower at 7%, about 2% lower than the industry average of 9%.
Also this is not a worry for the investors. The reason being that the returns are calculated on the profits and not the losses. The company has always been generous while paying out the investors. The things seem sunny for BA. Investing would mean added returns in future.