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BAE SystemsBAESF +0.47%82 Cash-to-Debt is 0.48 as of Jun. 2026, which is 7% above its 10-year median of 0.45. GuruFocus rates BAESF with a GF Score™ of 82/100 and a GF Value™ of $24.68 (Fairly Valued). The stock has 2 warning signs investors should review. Among 357 Aerospace & Defense companies, BAE Systems ranks worse than 61.9% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. BAE Systems's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.48.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, BAE Systemscouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for BAE Systems's Cash-to-Debt or its related term are showing as below:
BAESF'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.26 Med: 0.45 Max: 0.8
Current: 0.48
During the past 13 years, BAE Systems's highest Cash to Debt Ratio was 0.80. The lowest was 0.26. And the median was 0.45.
BAESF's Cash-to-Debt is ranked worse than 61.9% of 357
companies
in the Aerospace & Defense industry
Industry Median: 0.92
vs BAESF: 0.48
BAE Systems (OTCPK:BAESF) Cash-to-Debt Explanation
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
BAE Systems Cash-to-Debt Related Terms
BAE Systems Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for BAE Systems's Cash-to-Debt can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Aerospace & Defense subindustry, BAE Systems's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
BAE Systems Cash-to-Debt vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where BAE Systems's Cash-to-Debt falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BAE Systems (BAESF) has a Cash-to-Debt of 0.48 as of Jun. 2026. This is near median its historical median of 0.45. Over the past decade, BAE Systems' Cash-to-Debt has ranged from 0.26 to 0.80. According to the industry distribution chart, BAE Systems ranks #221 out of 357 companies in the Aerospace & Defense industry, placing it in the top 61.9%.
Is BAE Systems' Cash-to-Debt too high?
BAE Systems' current Cash-to-Debt of 0.48 is near median its 10-year median of 0.45. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 0.80. The Aerospace & Defense industry median Cash-to-Debt is 0.92. BAE Systems' value of 0.48 is 47.8% below this industry median. Based on the distribution chart, BAE Systems ranks #221 out of 357 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, BAE Systems has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Cash-to-Debt compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #221 out of 357 companies for Cash-to-Debt. This places BAE Systems in the lower half of its industry. The industry median Cash-to-Debt is 0.92. BAE Systems' value of 0.48 is 47.8% below this benchmark. Historically, BAE Systems' own Cash-to-Debt has ranged from 0.26 to 0.80 over the past decade. While the company's 10-year median is 0.45 vs. the industry median of 0.92, BAE Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for an Aerospace & Defense company?
The median Cash-to-Debt among Aerospace & Defense companies is 0.92, based on 357 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current Cash-to-Debt of 0.48 is 47.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median Cash-to-Debt is 0.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current Cash-to-Debt is 0.48, which is near median its own 10-year median of 0.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (BAESF) is currently considered Fairly Valued. The stock's GF Value™ is $24.68, compared to a current price of $26.16 — trading 6% above its estimated fair value. The current Cash-to-Debt is 0.48, which is near median its 10-year median of 0.45 and 47.8% below the Aerospace & Defense industry median of 0.92. BAE Systems' overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For BAE Systems (BAESF), the current Cash-to-Debt is 0.48 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is BAE Systems (BAESF) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $26.16 is trading 6% above its estimated GF Value™ of $24.68.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for BAESF:
Cash-to-Debt: 0.48 (near median its 10-year median of 0.45)
GF Value™: $24.68 vs. price of $26.16 (6% above fair value)
Industry Position: 47.8% below the Aerospace & Defense median (#221 of 357)
No single metric tells the full story. See the BAESF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
82GF Score
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