BA Investment Analysis Report & Stock Research, The Boeing Company

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The Boeing Company (BA)

BA Stock Report

2-Year Price History

Recent Price
(7/2 4:00PM) -3.3%
$40.83
52-Week Price
$29.05 - $68.75
Market Capitalization
$29.7 Billion
Dividend Yield
4.10%
Most Recent Dividend
$1.60

Ockham's Rating

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BA Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at BA through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.99x and 0.62x respectively.

Utilizing this range we can see that BA’s current Price to Sales per share ratio of 0.43x is significantly below its average levels historically. In fact, with a current price of $40.83, BA is a full 47% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for BA.

BA Cash Earnings

As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of BA, Ockham views their current Cash Earnings as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for BA, the current level of Cash Earnings compared to its historical levels helps identify where BA is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 14.37 and a historical low Cash Earnings per share ratio of 8.91, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for BA? From the Ockham perspective, we are looking specifically at BA to see if the market is recognizing the huge disparity between BA's past stock price to Cash Earnings ratio to today's levels. At a difference of 29% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at BA. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

BA Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

In BA’s case, the estimated annual dividend is $1.68 resulting in a current dividend yield of 4.11%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from BA against the historic high and low levels over the past 10 years. The highest dividend yield from BA over this period was 5.78% while the lowest dividend yield was 0.79% BA’s current dividend yield is therefore significantly higher than its median dividend yield historically. In fact, the current yield is 25.11% above the median which weighs very positively on our analysis of BA.

Peer Comparison

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The Boeing Company Industry Grouping

(7/2/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding BA) 7.31 6.15 » 34.76 0.67 0.43 » 1.58 11.37% 22.09%
*10 year range does not include current year values
Lockheed Martin Corp. LMT $30.9 Billion $79.52 7.72 6.54 » 30.81 0.72 0.28 » 1.23 6.07% 44.22%
The Boeing Company BA $29.7 Billion $40.83 8.27 4.22 » 19.26 0.43 0.40 » 1.25 3.83% 25.91%
Honeywell International, Inc. HON $22.9 Billion $30.80 6.61 4.63 » 77.26 0.59 0.47 » 1.95 9.61% 22.60%
General Dynamics Corp. GD $20.6 Billion $53.62 6.97 6.31 » 21.38 0.68 0.59 » 1.75 12.01% 19.20%
Raytheon Company RTN $16.9 Billion $43.01 7.96 7.15 » 25.19 0.76 0.35 » 1.32 5.06% 12.46%
L-3 Communications Holdings Inc LLL $7.7 Billion $65.75 6.54 6.13 » 19.15 0.53 0.46 » 1.64 24.10% 11.96%
>
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The latest TV Media Discussion

7:08:23 PM BA $40.83 The Boeing Company
America's Nightly Scoreboard
15 hours ago (07/03)
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7:06:38 PM BA $40.83 The Boeing Company
America's Nightly Scoreboard
15 hours ago (07/03)
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7:08:25 AM BA $40.83 The Boeing Company
1 days ago (07/03)
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7:06:42 AM BA $40.83 The Boeing Company
1 days ago (07/03)
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7:08:22 PM BA $40.83 The Boeing Company
America's Nightly Scoreboard
1 days ago (07/02)
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7:06:38 PM BA $40.83 The Boeing Company
America's Nightly Scoreboard
1 days ago (07/02)
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5:25:17 PM BA $40.83 The Boeing Company
Fast Money
1 days ago (07/02)
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4:02:04 PM BA $41.09 The Boeing Company
1 days ago (07/02)
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12:00:23 PM BA $40.82 The Boeing Company
1 days ago (07/02)
“…Perform performers. High quality office vendors have the highest vacancy rate in 15 years, according to jones lang and BOEING says it delivered 125 aircrafts in the second quarter, close to 126 delivered in the same quarter last year. That's cnbc.Com news now. …” …more details…
1:42:33 PM BA $42.58 The Boeing Company
2 days ago (07/01)
“…Chris cotter, come back and see >> how many are gonna hate me, how many love me? 50/50. >> stuart: breaking news. The "wall street journal" reporting that BOEING will buy the operations of its 787 dreamliner supplier. BOEING shares up a little on that news at 42. That's BOEING. It's been holding right there in the last week or so as the bad news on that dreamliner flowed in. Now it's buying one supplier, …” …more details…
12:55:48 PM BA $42.61 The Boeing Company
2 days ago (07/01)
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11:37:09 AM BA $42.58 The Boeing Company
2 days ago (07/01)
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8:46:36 AM BA $42.88 The Boeing Company
3 days ago (07/01)
“…You look at the prices they are so low and that's because people are not traveling. I seem people getting into their car instead of flying. I think BOEING will be hurt short-term next 12 to 24 months I don't see a lot of orders coming in. If you want to look at another company, rockwell collins also an airspace company. >> you own that one? >> yes, I own it. >> rockwell instead of BOEING. We talked about citi and general we will leave it there. Thanks a lot for coming on. >> happy of 4th of july. Connell: same to you. Holiday weekend coming up. Outside the studio is where we're going next. …” …more details…
8:45:54 AM BA $42.88 The Boeing Company
3 days ago (07/01)
“…Credit card bills over the next that's dangerous for companies that have credit card companies absolutely. Connell: let's run through another stock or two from our fox 50 if we have a chance. BOEING has been in the news a lot lately. It had the delay of course of 787 dreamliner again. What do you make of boweing? >> I would get out of BOEING at this point. I look at the airline industry and I say, you know, it's going to be hurting for a very very long time. I was looking at book tickets …” …more details…
4:55:55 PM BA $42.50 The Boeing Company
3 days ago (06/30)
“…Vital to freedom. To help carry hope around the globe, the people of BOEING... Are working together -- for what matters most. That's why we're here. …” …more details…
4:35:56 PM BA $42.50 The Boeing Company
3 days ago (06/30)
“…Own companies that valuation is still on your side. So we prefer companies that you know, have underperformed for one reason or another but have been very profitable. An example would be BOEING which was disappointing in that the 787, their new plane, is going to be late. However, they're earning a lot of money $4.50 a share and one of these days they will get the plane flying, the economy will recover and people will buy planes akin to what happened after 9/11 for BOEING. You're at the beginning of what will be a long-term investment opportunity. Obviously, no one will get the timing right but the valuation is excellent right now. …” …more details…
3:35:31 PM BA $42.72 The Boeing Company
4 days ago (06/29)
“…Government is on the guys. The names we're watching -- by the way, alcoa is the one component to the down side. We have seen strength in the united technology, BOEING, merck, dupont, hewlett-packard has been soaring. And the fox 50. We heard about steve jobs going back to work at apple. …” …more details…
4:27:52 PM BA $41.99 The Boeing Company
7 days ago (06/26)
“…Pakistan. >> they just put in in the put in a new plant to manufacture diapers. BOEING continues to have parts manufactured in pakistan manufactured for some of their the military sector in pakistan is going to grow very fast now because the government has restored the old policy of attracting private investment in …” …more details…
3:02:36 PM BA $42.06 The Boeing Company
7 days ago (06/26)
“…See some bullish calls on out of jpmorgan, for example. Upgrading both of the materials and the industrial sector here but BOEING, again, down today. Not as bad as it looked like it was going to be at the outset, but down 13 and change for the far and away the worst performer in the dow due to the trimming of the order from qantas from 65 planes down to 50. …” …more details…
2:05:19 PM BA $42.02 The Boeing Company
7 days ago (06/26)
“…Since june 15 of all of those trading days, only two have been to on the plus side. It shows the pressure on the market. Laggard on the dow jones/industrials average are american express and microsoft, wal-mart, BOEING. The names we've been watching. BOEING in particular losing more orders now. We have been hearing the dreamliner delays and it's putting pressure on the dow nech the names in the green, only two dow components up …” …more details…
12:02:38 PM BA $42.01 The Boeing Company
7 days ago (06/26)
“…Sprint and next teleup strong. And jpmorgan and coach! Get in the game. Okay. 3.5% higher with some of the retailers that are working. BOEING is still down again here today, down 1.2%. But 13% give back on a week to day basis makes it clearly the big loser in the dow. And, of course, a reminder, after the close today, the …” …more details…
7:53:29 PM BA $42.20 The Boeing Company
America's Nightly Scoreboard
8 days ago (06/25)
“…Ring a bell was harry >> he's the former president and ceo of BOEING, who had to resign in 2005 after it was revealed he had an affair with another BOEING executive and the company said, it surfaced in e-mails, and -- david: sexually explicit >> not a direct violation of company policy, but, they said it reflected poorly on his …” …more details…
7:35:17 AM BA $41.41 The Boeing Company
9 days ago (06/25)
“…Enhancing commuter airline the panel will release recommendations by september 1st which will focus an alleviating pilot fatigue and performance >>> BOEING facing pr debacle after delay of its 787 dream liner was announced following assurance the program was on track. This is the sixth delay in six years of the dreamliner's …” …more details…
6:46:06 PM BA $41.32 The Boeing Company
Mad Money
9 days ago (06/24)
“…But keeps noting to me it doesn't do anything. I think it's cheap. I like yum. Remember, the stock reported just like the fact BOEING can't build a dreamliner, we know whose fault it is? The fault, dear brutus, is the lightning round is over! About strategy. And strategy's... …” …more details…
6:42:54 PM BA $41.32 The Boeing Company
Mad Money
9 days ago (06/24)
“…Me or kill me or fine me or beat me. The latest one I did wrong, I said I got it wrong when it went to 48. I had no idea, nor did anyone else in the world, that this BOEING dreamliner wasn't going to fly. It is my fault mostly. I built the fuselage. Maybe it's the cockpit I built. I don't know. Maybe it's the cells. That's why we're bringing up it's part of the BOEING family. It's going to have delayed earnings, I believe, because BOEING can't build it. Why is BOEING -- i've read the message boards. Why can't BOEING build the ben in virginia. >> caller: here's a big boo-yah. I'm wondering, i'm going to grad school next year. I've got fortune brand stock. …” …more details…
5:12:26 PM BA $41.42 The Boeing Company
Fast Money
9 days ago (06/24)
“…It's higher, but having a more certainty when they have a handle on dreamliner. It's important to them. Their business that are very, very significant, dreamliner is important. >> at what point does BOEING become a value play? >> probably at 54, which was $10 higher than here, it was probably a value play. More value now. >> let's move on to the next trade. Oil closing the day lower after …” …more details…
5:11:50 PM BA $41.39 The Boeing Company
Fast Money
9 days ago (06/24)
“…Again, when you're talking about nasdaq, you're talking about names that don't necessarily have that con tageion, that financial consumer con tageion that affects the balance sheets. >> let's move on to the next. BOEING certainly the dog of the dow part deux. Yesterday it did pretty poorly on the back of the announcement it will delay once again the maiden flight of its dreamliner. As jane wells put it today, the dream on liner. Karen, you had pretty sharp words for BOEING yesterday. >> when it rains, of course. They had a cancellation today. I think a lot of people have just thrown in the towel saying they really don't have a handle on their business, and how can you be in it if they don't know what they're doing, how can you …” …more details…
5:02:04 PM BA $41.38 The Boeing Company
Fast Money
9 days ago (06/24)
“…Will happen, folks. You will hear that. You've already heard it from we're going to hear a lot more. >> let's put the move in perspective. Yes, the dow jones industrial average finished lower, but that's mainly because of BOEING. The nasdaq did quite nicely. S&p 500 up 7%. Still not a bad day on the back of the fed move. >> I didn't think it was that significant of a move. …” …more details…
4:53:54 PM BA $41.36 The Boeing Company
9 days ago (06/24)
“…>>> welcome back now. A look at the other stories on the closing bell ticket. Morgan stanley cutting BOEING's stock from equal weight to overweight. And oppenheimer reduced its weight on the stock from underperform to perform. That's because of the recent …” …more details…
3:56:40 PM BA $41.28 The Boeing Company
9 days ago (06/24)
“…It is the last u.S.-based commercial satellite launching it has filed for chapter 11 bankruptcy. Deutschebank says it could mean a billion-dollar liability in cash. And BOEING is the largest creditor. Continue operating. But a tough week for BOEING, maria, and it is only wednesday. >> yeah, it's true. And right now the stock is down about 6% on the session. $41.26 a share. Jane, thanks so much. Jane wells. Here's a look at BOEING now. And bob, what is it doing? You said -- >> 20%. The june 9th, june 10th it >> it's been a couple of weeks. >> it's off 20% from those >> got the closing countdown coming your way right after this short break. …” …more details…
3:55:21 PM BA $41.26 The Boeing Company
9 days ago (06/24)
“…Stock today to underperform. Though jefferies maintaining a buy, saying the fix appears to be modest. The 787 problems have overshadowed a huge loss in what BOEING considered a crown jewel in defense. Future combat systems program, meant to modernize and integrate communications on the much of that $160 billion program has been killed. …” …more details…
3:54:53 PM BA $41.23 The Boeing Company
9 days ago (06/24)
“…>>> one day after again delaying its high-profile dreamliner jet BOEING is getting hit with more costly bad news. Cnbc's jane wells is in los angeles right now, she has the >> hey, maria. Yeah, BOEING getting hit on all they just keep coming. First today, analysts not happy with this latest delay in the 787 dreamliner due to structural changes. It comes only a week after the company promised the airplane was on track to make its first …” …more details…
3:51:29 PM BA $41.37 The Boeing Company
9 days ago (06/24)
“…Going to have to solve. >> robert lahey, thanks very much. We've only got ten minutes to go before the closing bell. Dow jones industrial average moving up off the lows. >> BOEING announcing another delay to the dreamliner jet the pentagon shooting down one of the most lucrative contracts. We'll check out this developing you have questions. Who can give you the …” …more details…
2:38:11 PM BA $41.28 The Boeing Company
9 days ago (06/24)
“…>>> the dow is now in negative territory looking at a couple biggest losers for the s&p 500 super value and BOEING which also is a dow component. We'll have much more on that in a couple moments. But a lot of names are now american express for example down about 3%. Market has been up almost a …” …more details…
1:41:31 PM BA $42.38 The Boeing Company
9 days ago (06/24)
“…Is it time to bet on a name like coach or keep betting on >> and the dow, nasdaq, and s&p are all in the black today though we do have a couple big name losers to mention. BOEING down again today. Another 3.5%. This is on the news about the pentagon deal that probably is going away when it comes to two days in a row for them. Super value lower by 12%. …” …more details…
12:42:07 PM BA $42.75 The Boeing Company
9 days ago (06/24)
“…Some concerns it might not work, that it had not learned its lesson in afghanistan and iraq. Deutsche bank says it's 2 billion a year at risk, money BOEING can no longer count on. Bank of america and merrill lynch says it's more like $4 billion plus a year through 2013. And as you look at how BOEING has performed in the last week, on top of this, its joint venture to launch rockets from ships just went bankrupt. Deutsche bank says that chapter 11 could leave BOEING with a billion-dollar cash liability. >> all right, jane, thank you very much. >> all right. Coming up, just over an hour from the fed decision. The decision inside analysis on …” …more details…
12:41:26 PM BA $42.76 The Boeing Company
9 days ago (06/24)
“…Yes, not just a 787 dream liner delay, which some are now calling the dream-on liner. It's also problems with the defense side of the industry. The pentagon has now officially killed off what was left of the future combat systems program, which was BOEING's baby. Replacing part of it with five separate programs of which BOEING is only the prime contractor on one. It's a sad end to big dreams started earlier this decade. There's BOEING animation. Future combat systems was a program meant to create an integrated network, how long all parties on the battlefield to be in contact. Very modernizing. It had a price tag of about $160 …” …more details…
12:40:47 PM BA $42.77 The Boeing Company
9 days ago (06/24)
“…Company much better than jabil and rite aid, big gainers today, all on earnings. >> cut costs, low expectations. That's how you beat the street double bummer for BOEING, the stock down more than 8% in the last two days of trading. First the dream liner delay and now a problem in had washington. Cnbc's jane wells with all of the details. Jane. >> hi, brian. …” …more details…
12:11:55 PM BA $42.79 The Boeing Company
9 days ago (06/24)
“…>> and a change in citi's pay structure for many employees. But is that simply happening because citi is now a second-class citizen in the we'll talk about that. Bad news for BOEING. Jane wells will talk about the story. It got hit yesterday afternoon. And the "fast money" halftime report coming up after a quick break. …” …more details…
View All The Boeing Company News

Key Fundamentals

BA - The Boeing Company Fundamentals
Price (7/2 4:00PM) $40.83
Volume (7/2 4:00PM) 7.2 Million
Last Close Price $42.23
10 Day Average Volume 10.6 Million
13 Week Price Range $35.81 - $53.39
52 Week Price Range $29.05 - $68.75
LTM Revenue $61.4 Billion
 
Shares Outstanding (12/2008) 726.2 Million
Market Capitalization $29.7 Billion
Shares Held By Institutions 506.6 Million
Institutional Holders 1,028
% Shares Held By Institutions 69.80%
Earnings Per Share (EPS) $3.67
P/E Ratio 14.30
Book Value Per Share
 
Gross Margin 19.00%
Annual Dividend 1.68
Dividend Yield 4.10%
Beta 1.25
Fiscal Year Ends December

About The Boeing Company

The Boeing Company is considered to operate in the Industrial Goods sector. They specifically operate in the Aerospace - Defense - Major Diversified business segment contained within the Aerospace/Defense industry.

The Company, together with its subsidiaries operates as an aerospace firm. It is engaged in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight services etc.

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