BAE SystemsBAESY -0.73%86 OCF Margin % is 22.74% as of Dec. 2025, which is 97% above its 10-year median of 11.56. GuruFocus rates BAESY with a GF Score™ of 86/100 and a GF Value™ of $88.08 (Fairly Valued). The stock has 2 warning signs investors should review. Among 347 Aerospace & Defense companies, BAE Systems ranks better than 62.25% on this metric.
The historical rank and industry rank for BAE Systems's OCF Margin % or its related term are showing as below:
BAESY'
s OCF Margin % Range Over the Past 10 Years
Min: 6.05 Med: 11.56 Max: 16.29
Current: 12.04
During the past 13 years, the highest OCF Margin % of BAE Systems was 16.29%. The lowest was 6.05%. And the median was 11.56%.
BAESY's OCF Margin % is ranked better than 62.25% of 347
companies
in the Aerospace & Defense industry
Industry Median: 8.59
vs BAESY: 12.04
BAE Systems OCF Margin % Related Terms
BAE Systems OCF Margin % Historical Data
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The historical data trend for BAE Systems's OCF 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 OCF Margin %, along with its competitors' market caps and OCF 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 OCF Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's OCF Margin % distribution charts can be found below:
* The bar in red indicates where BAE Systems's OCF 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 (BAESY) has a OCF Margin % of 22.74% as of Dec. 2025. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on BAE Systems and its competitors. This is 97% above median its historical median of 11.56. Over the past decade, BAE Systems' OCF Margin % has ranged from 6.05 to 16.29. According to the industry distribution chart, BAE Systems ranks #131 out of 347 companies in the Aerospace & Defense industry, placing it in the top 37.8%.
Is BAE Systems' OCF Margin % too high?
BAE Systems' current OCF Margin % of 22.74% is 97% above median its 10-year median of 11.56. Over the past 10 years, this metric has ranged from a low of 6.05 to a high of 16.29. The Aerospace & Defense industry median OCF Margin % is 8.59. BAE Systems' value of 22.74% is 164.7% above this industry median. Based on the distribution chart, BAE Systems ranks #131 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, BAE Systems has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' OCF Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #131 out of 347 companies for OCF Margin %. This puts BAE Systems in the upper half of its industry. The industry median OCF Margin % is 8.59. BAE Systems' value of 22.74% is 164.7% above this benchmark. Historically, BAE Systems' own OCF Margin % has ranged from 6.05 to 16.29 over the past decade. While the company's 10-year median is 11.56 vs. the industry median of 8.59, 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 OCF Margin % for an Aerospace & Defense company?
The median OCF Margin % among Aerospace & Defense companies is 8.59, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current OCF Margin % of 22.74% is 164.7% 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on BAE Systems and its competitors. For the Aerospace & Defense industry, the median OCF Margin % is 8.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current OCF Margin % is 22.74%, which is 97% above median its own 10-year median of 11.56. 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 (BAESY) is currently considered Fairly Valued. The stock's GF Value™ is $88.08, compared to a current price of $94.90 — trading 7.7% above its estimated fair value. The current OCF Margin % is 22.74%, which is 97% above median its 10-year median of 11.56 and 164.7% above the Aerospace & Defense industry median of 8.59. BAE Systems' overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For BAE Systems (BAESY), the current OCF Margin % is 22.74% 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 (BAESY) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $94.90 is trading 7.7% above its estimated GF Value™ of $88.08.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for BAESY:
OCF Margin %: 22.74% (97% above median its 10-year median of 11.56)
GF Value™: $88.08 vs. price of $94.90 (7.7% above fair value)
Industry Position: 164.7% above the Aerospace & Defense median (#131 of 347)
No single metric tells the full story. See the BAESY 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.
86GF Score
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