BAE SystemsLSE:BA. -0.03%84 FCF Margin % is 18.41% as of Dec. 2025, which is 123% above its 10-year median of 8.24. GuruFocus rates LSE:BA. with a GF Score™ of 84/100 and a GF Value™ of £16.81 (Fairly Valued). The stock has 2 warning signs investors should review. Among 347 Aerospace & Defense companies, BAE Systems ranks better than 68.3% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. BAE Systems's Free Cash Flow for the
six
months ended in Dec. 2025 was £2,718 Mil. BAE Systems's Revenue for the
six
months ended in Dec. 2025 was £14,765 Mil. Therefore, BAE Systems's FCF Margin % for the quarter that ended in Dec. 2025 was 18.41%.
The historical rank and industry rank for BAE Systems's FCF Margin % or its related term are showing as below:
LSE:BA.'
s FCF Margin % Range Over the Past 10 Years
Min: 3.57 Med: 8.24 Max: 12.15
Current: 8.22
During the past 13 years, the highest FCF Margin % of BAE Systems was 12.15%. The lowest was 3.57%. And the median was 8.24%.
LSE:BA.'s FCF Margin % is ranked better than 68.3% of 347
companies
in the Aerospace & Defense industry
Industry Median: 0.64
vs LSE:BA.: 8.22
BAE Systems FCF Margin % Related Terms
BAE Systems FCF Margin % Historical Data
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The historical data trend for BAE Systems's FCF Margin % 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.
For the Aerospace & Defense subindustry, BAE Systems's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's FCF Margin % distribution charts can be found below:
* The bar in red indicates where BAE Systems's FCF Margin % 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 (LSE:BA.) has a FCF Margin % of 18.41% as of Dec. 2025. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on BAE Systems and its competitors. This is 123% above median its historical median of 8.24. Over the past decade, BAE Systems' FCF Margin % has ranged from 3.57 to 12.15. According to the industry distribution chart, BAE Systems ranks #110 out of 347 companies in the Aerospace & Defense industry, placing it in the top 31.7%.
Is BAE Systems' FCF Margin % too high?
BAE Systems' current FCF Margin % of 18.41% is 123% above median its 10-year median of 8.24. Over the past 10 years, this metric has ranged from a low of 3.57 to a high of 12.15. The Aerospace & Defense industry median FCF Margin % is 0.64. BAE Systems' value of 18.41% is 2776.6% above this industry median. Based on the distribution chart, BAE Systems ranks #110 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, BAE Systems has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' FCF Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #110 out of 347 companies for FCF Margin %. This puts BAE Systems in the upper half of its industry. The industry median FCF Margin % is 0.64. BAE Systems' value of 18.41% is 2776.6% above this benchmark. Historically, BAE Systems' own FCF Margin % has ranged from 3.57 to 12.15 over the past decade. While the company's 10-year median is 8.24 vs. the industry median of 0.64, BAE Systems has consistently been above 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 FCF Margin % for an Aerospace & Defense company?
The median FCF Margin % among Aerospace & Defense companies is 0.64, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current FCF Margin % of 18.41% is 2776.6% above 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on BAE Systems and its competitors. For the Aerospace & Defense industry, the median FCF Margin % is 0.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current FCF Margin % is 18.41%, which is 123% above median its own 10-year median of 8.24. 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 (LSE:BA.) is currently considered Fairly Valued. The stock's GF Value™ is £16.81, compared to a current price of £18.25 — trading 8.5% above its estimated fair value. The current FCF Margin % is 18.41%, which is 123% above median its 10-year median of 8.24 and 2776.6% above the Aerospace & Defense industry median of 0.64. BAE Systems' overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For BAE Systems (LSE:BA.), the current FCF Margin % is 18.41% as of Dec. 2025. 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 (LSE:BA.) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of £18.25 is trading 8.5% above its estimated GF Value™ of £16.81.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for LSE:BA.:
FCF Margin %: 18.41% (123% above median its 10-year median of 8.24)
GF Value™: £16.81 vs. price of £18.25 (8.5% above fair value)
Industry Position: 2776.6% above the Aerospace & Defense median (#110 of 347)
No single metric tells the full story. See the LSE:BA. 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.
84GF Score
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FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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