Airbus AIR.DE
What does Airbus do?
Airbus is a European aerospace group headquartered in the Netherlands, with major sites in France, Germany, Spain and the United Kingdom. The company develops, manufactures and sells commercial aircraft, helicopters, and defense and space systems. The largest segment is commercial aircraft, which includes short-, medium- and long-haul jets as well as freighters and turboprop aircraft. Airbus earns money mainly from delivering aircraft to airlines and leasing companies, and from services related to maintenance, conversion and operation.
Airbus Helicopters serves civil and military customers, such as rescue services, the energy industry and armed forces. Airbus Defence and Space supplies military aircraft, satellites, space infrastructure, and communications and security solutions, mainly to government customers. In the market for large commercial aircraft, Airbus and Boeing form a de facto duopoly, protected by high development costs, strict certification processes and long supply chains. New competitors from China and Russia are trying to establish their own models. In helicopters and defense, Airbus competes with large US and European manufacturers.
Score profile
Rank vs. Aerospace & Defense (36 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Airbus ranks in the middle in the group Aerospace & Defense (5.3/10). On growth, the company ranks below average in the group Aerospace & Defense (3.5/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Aerospace & Defense (4.6/10). On financial strength, Airbus ranks below average in the group Aerospace & Defense (3.4/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 43.5x | 24.3x | better than 9 % |
| Trailing P/E | 26.7x | 29.0x | better than 57 % |
| PEG ratio | 1.4x | 1.5x | better than 56 % |
| EV/EBITDA | 18.4x | 18.4x | better than 52 % |
| Price/sales | 2.2x | 3.2x | better than 69 % |
| Price/book | 6.2x | 3.6x | better than 35 % |
| Revenue growth | -2.0% | 11.0% | better than 4 % |
| Earnings growth | 20.6% | 10.0% | better than 66 % |
| Gross margin | 16.7% | 22.8% | better than 35 % |
| Operating margin | 9.4% | 10.7% | better than 43 % |
| Net margin | 8.1% | 7.7% | better than 54 % |
| Return on equity | 23.5% | 11.9% | better than 79 % |
| Debt/equity | 51.5% | 51.8% | better than 57 % |
| Current ratio | 1.2x | 2.2x | better than 13 % |
| Free cash flow yield | 0.6% | 1.5% | better than 32 % |
| Dividend yield | 1.5% | 0.9% | – |
| Payout ratio | 41.0% | 26.0% | – |
| Beta | 0.86 | 0.96 | – |
Valuation: what is Airbus worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Airbus a model range of 116.34 EUR to 208.58 EUR per share.
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Demand from airlines and lessors for new, more fuel-efficient aircraft determines orders, deliveries and revenue in the core business.
- The ability to increase production rates and stabilize supply chains determines delivery volumes and cash flow.
- Government defense and space budgets, as well as the service needs of the growing aircraft fleet, provide additional, partly more stable revenue sources.
Risks
- Supplier bottlenecks, for example in engines and components, can delay deliveries and raise costs.
- Economic weakness, crises or trade conflicts can dampen air traffic and weigh on orders, and tariffs and exchange rates can add pressure.
- Technical defects, certification issues or quality problems, as well as delays and cost overruns in major programs, can harm earnings and reputation.
What to look for with Airbus
The order backlog relative to annual deliveries shows how long production is booked and makes the predictability of this long-cycle business visible.