BAE SystemsFRA:BSP -1.47%84 Piotroski F-Score is 6 as of Jun. 25, 2026, which is at its 10-year median of 6.00. GuruFocus rates FRA:BSP with a GF Score™ of 84/100 and a GF Value™ of €19.16 (Fairly Valued). The stock has 2 warning signs investors should review. Among 319 Aerospace & Defense companies, BAE Systems ranks better than 73.98% on this metric.
The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
BAE Systems has an F-score of 6 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for BAE Systems's Piotroski F-Score or its related term are showing as below:
FRA:BSP'
s Piotroski F-Score Range Over the Past 10 Years
Min: 3 Med: 6 Max: 7
Current: 6
During the past 13 years, the highest Piotroski F-Score of BAE Systems was 7. The lowest was 3. And the median was 6.
BAE Systems (FRA:BSP) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
BAE Systems Piotroski F-Score Related Terms
BAE Systems Piotroski F-Score Historical Data
* Premium members only.
The historical data trend for BAE Systems's Piotroski F-Score 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.
FRA:BSP vs GE, RTX, BA: Piotroski F-Score Comparison
For the Aerospace & Defense subindustry, BAE Systems's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where BAE Systems's Piotroski F-Score 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.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
BAE Systems's current Net Income (TTM) was 2,357.
==> Positive ==> Score 1.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
BAE Systems's return on assets of this year was 0.05119123. BAE Systems's return on assets of last year was 0.0634506.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
BAE Systems's gearing of this year was 0.22327023. BAE Systems's gearing of last year was 0.27174478.
==> This year is lower or equal to last year. ==> Score 1.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
BAE Systems's current ratio of this year was 0.98732019. BAE Systems's current ratio of last year was 0.95227677.
==> This year's current ratio is higher. ==> Score 1.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
BAE Systems's number of shares in issue this year was 3031. BAE Systems's number of shares in issue last year was 3053.
==> There is smaller number of shares in issue this year, or the same. ==> Score 1.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
BAE Systems's gross margin of this year was 0.65196217. BAE Systems's gross margin of last year was 0.6547203.
==> Last year's gross margin is higher ==> Score 0.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
BAE Systems's asset turnover of this year was 0.70346981. BAE Systems's asset turnover of last year was 0.85353395.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
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6
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
BAE Systems has an F-score of 6 indicating the company's financial situation is typical for a stable company.
BAE Systems (FRA:BSP) has a Piotroski F-Score of 6 as of Jun. 25, 2026. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on BAE Systems and its competitors. This is near median its historical median of 6.00. Over the past decade, BAE Systems' Piotroski F-Score has ranged from 3.00 to 7.00. According to the industry distribution chart, BAE Systems ranks #83 out of 319 companies in the Aerospace & Defense industry, placing it in the top 26%.
Is BAE Systems' Piotroski F-Score too high?
BAE Systems' current Piotroski F-Score of 6 is near median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 7.00. The Aerospace & Defense industry median Piotroski F-Score is 5.00. BAE Systems' value of 6 is 20% above this industry median. Based on the distribution chart, BAE Systems ranks #83 out of 319 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' Piotroski F-Score compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #83 out of 319 companies for Piotroski F-Score. This puts BAE Systems in the upper half of its industry. The industry median Piotroski F-Score is 5.00. BAE Systems' value of 6 is 20% above this benchmark. Historically, BAE Systems' own Piotroski F-Score has ranged from 3.00 to 7.00 over the past decade. While the company's 10-year median is 6.00 vs. the industry median of 5.00, 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 Piotroski F-Score for an Aerospace & Defense company?
The median Piotroski F-Score among Aerospace & Defense companies is 5.00, based on 319 companies in the industry. Companies in the top quartile (top 25%) have a Piotroski F-Score significantly above this median, while those in the bottom quartile fall well below. However, Piotroski F-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current Piotroski F-Score of 6 is 20% 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 Piotroski F-Score mean?
A high Piotroski F-Score can signal that a stock is expensive relative to its fundamentals. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on BAE Systems and its competitors. For the Aerospace & Defense industry, the median Piotroski F-Score is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current Piotroski F-Score is 6, which is near median its own 10-year median of 6.00. 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 (FRA:BSP) is currently considered Fairly Valued. The stock's GF Value™ is €19.16, compared to a current price of €20.80 — trading 8.6% above its estimated fair value. The current Piotroski F-Score is 6, which is near median its 10-year median of 6.00 and 20% above the Aerospace & Defense industry median of 5.00. 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 Piotroski F-Score calculated?
Piotroski F-Score is calculated from a company's financial statements. For BAE Systems (FRA:BSP), the current Piotroski F-Score is 6 as of Jun. 25, 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 (FRA:BSP) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of €20.80 is trading 8.6% above its estimated GF Value™ of €19.16.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for FRA:BSP:
Piotroski F-Score: 6 (near median its 10-year median of 6.00)
GF Value™: €19.16 vs. price of €20.80 (8.6% above fair value)
Industry Position: 20% above the Aerospace & Defense median (#83 of 319)
No single metric tells the full story. See the FRA:BSP 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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