Boeing BA
What does Boeing do?
Boeing develops, manufactures and services commercial airplanes, military aircraft, space systems and missile defense. The company is one of the two dominant manufacturers of large passenger and cargo aircraft worldwide and is also one of the largest defense and space companies in the US.
The business is divided into three segments: Commercial Airplanes sells jets to airlines and leasing companies. Defense, Space & Security supplies manned and unmanned military aircraft, weapons systems, satellites and space systems, primarily to the US government and allied states. Global Services offers spare parts, maintenance, modifications, training and digital solutions for commercial and military customers. In the commercial business, Boeing is in direct duopoly competition with Airbus. High barriers to entry from certification, capital requirements and supply chains secure its market position but make the company dependent on production quality and regulatory trust.
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, Boeing ranks below average in the group Aerospace & Defense (2.8/10). On growth, the company ranks in the bottom fifth in the group Aerospace & Defense (1.7/10). On valuation (higher = cheaper), the stock ranks below average in the group Aerospace & Defense (2.8/10). On financial strength, Boeing ranks below average in the group Aerospace & Defense (3.0/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 80.2x | 24.3x | better than 5 % |
| Trailing P/E | 17.9x | 29.0x | better than 87 % |
| PEG ratio | 3.7x | 1.5x | better than 13 % |
| EV/EBITDA | 81.7x | 18.4x | better than 5 % |
| Price/sales | 1.5x | 3.2x | better than 87 % |
| Price/book | 21.0x | 3.6x | better than 2 % |
| Revenue growth | 3.9% | 11.0% | better than 13 % |
| Earnings growth | 0.0% | 10.0% | better than 22 % |
| Gross margin | 9.5% | 22.8% | better than 7 % |
| Operating margin | 0.3% | 10.7% | better than 22 % |
| Net margin | 8.1% | 7.7% | better than 57 % |
| Return on equity | 0.0% | 11.9% | better than 26 % |
| Debt/equity | 738.5% | 51.8% | better than 1 % |
| Current ratio | 1.1x | 2.2x | better than 10 % |
| Free cash flow yield | 3.4% | 1.5% | better than 79 % |
| Dividend yield | 0.0% | 0.9% | – |
| Payout ratio | 0.0% | 26.0% | – |
| Beta | 1.33 | 0.96 | – |
Valuation: what is Boeing worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Boeing a model range of 83.75 USD to 104.39 USD per share.
26 analysts, average rating “Strong buy”, average price target 233.35 USD (+34.6%).
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
- Airline demand for new aircraft and the ability to stably produce and deliver ordered planes.
- Government defense and space budgets determine order volume and margins in the Defense, Space & Security segment.
- The services business with spare parts and maintenance grows with the fleet in operation and supports recurring revenue.
Risks
- Quality and safety deficiencies can result in delivery halts, regulatory requirements and lasting reputational damage.
- Fixed-price contracts in defense and space carry the risk of cost overruns and large one-off charges.
- Complex supply chains, labor disputes and high debt limit flexibility and weigh on cash flow.
What to look for with Boeing
Free cash flow is particularly informative because, in a long-cycle business, deliveries, advance payments and program costs drive cash inflows more than period earnings do.