DB:S9Q

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Spirit AeroSystems Holdings

Executive Summary

Spirit AeroSystems Holdings, Inc. designs, manufactures, and supplies commercial aero structures in the United States and internationally.


Snowflake Analysis

Undervalued with high growth potential.


Similar Companies

Share Price & News

How has Spirit AeroSystems Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: S9Q's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.2%

S9Q

8.6%

DE Aerospace & Defense

3.2%

DE Market


1 Year Return

-71.5%

S9Q

-32.2%

DE Aerospace & Defense

0.01%

DE Market

Return vs Industry: S9Q underperformed the German Aerospace & Defense industry which returned -32.2% over the past year.

Return vs Market: S9Q underperformed the German Market which returned 0% over the past year.


Shareholder returns

S9QIndustryMarket
7 Day10.2%8.6%3.2%
30 Day-8.9%2.2%4.7%
90 Day-57.1%-33.2%-0.9%
1 Year-71.4%-71.5%-32.0%-32.2%1.7%0.01%
3 Year-58.5%-59.2%-16.5%-20.4%-6.8%-14.0%
5 Year-56.6%-57.5%14.2%4.0%3.9%-9.5%

Price Volatility Vs. Market

How volatile is Spirit AeroSystems Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Spirit AeroSystems Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S9Q (€20.6) is trading below our estimate of fair value (€55.89)

Significantly Below Fair Value: S9Q is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: S9Q is good value based on its PE Ratio (11x) compared to the Aerospace & Defense industry average (15.5x).

PE vs Market: S9Q is good value based on its PE Ratio (11x) compared to the German market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: S9Q is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: S9Q is overvalued based on its PB Ratio (1.6x) compared to the XE Aerospace & Defense industry average (1.5x).


Next Steps

Future Growth

How is Spirit AeroSystems Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

75.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S9Q's forecast earnings growth (75.6% per year) is above the savings rate (0.2%).

Earnings vs Market: S9Q's earnings (75.6% per year) are forecast to grow faster than the German market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: S9Q's revenue (14.8% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: S9Q's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: S9Q's Return on Equity is forecast to be high in 3 years time (25.4%)


Next Steps

Past Performance

How has Spirit AeroSystems Holdings performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S9Q has a large one-off loss of $186.2M impacting its April 2 2020 financial results.

Growing Profit Margin: S9Q's current net profit margins (2.9%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: S9Q's earnings have declined by -1.4% per year over the past 5 years.

Accelerating Growth: S9Q's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: S9Q had negative earnings growth (-68.9%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (14.3%).


Return on Equity

High ROE: S9Q's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is Spirit AeroSystems Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: S9Q's short term assets ($4.0B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: S9Q's short term assets ($4.0B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: S9Q's debt to equity ratio (197.8%) is considered high.

Reducing Debt: S9Q's debt to equity ratio has increased from 63.1% to 197.8% over the past 5 years.

Debt Coverage: S9Q's debt is not well covered by operating cash flow (12.1%).

Interest Coverage: S9Q's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Spirit AeroSystems Holdings's current dividend yield, its reliability and sustainability?

0.18%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: S9Q's dividend (0.18%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.29%).

High Dividend: S9Q's dividend (0.18%) is low compared to the top 25% of dividend payers in the German market (3.86%).


Stability and Growth of Payments

Stable Dividend: S9Q is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: S9Q is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: S9Q is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of S9Q's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Tom Gentile (55yo)

3.75yrs

Tenure

US$11,072,149

Compensation

Mr. Thomas C. Gentile, III, also known as Tom, has been the Chief Executive Officer and President at Spirit AeroSystems Holdings, Inc. since August 1, 2016 and served as its Chief Operating Officer and Exe ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD11.07M) is above average for companies of similar size in the German market ($USD1.52M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Gentile
President3.75yrsUS$11.07m0.29% $6.0m
John Pilla
Senior VP & CTO2.67yrsUS$2.00m0.11% $2.3m
Samantha Marnick
Executive VP and Chief Administration Officer & Strategy3.83yrsUS$2.45m0.079% $1.6m
Duane Hawkins
Senior VP and President of Defense & Fabrication2.67yrsUS$2.34m0.072% $1.5m
Mark Suchinski
Senior VP & CFO0.33yrno data0.035% $723.5k
Ron Rabe
Senior VP of Operations & Chief Procurement Officer1.67yrsno data0.035% $721.9k
Damon Ward
Interim Controller & Principal Accounting Officer0.33yrno data0.011% $235.8k
Kailash Krishnaswamy
Head of Investor Relationsno datano datano data
Stacy Cozad
Senior VPno datano data0.023% $479.8k
Jim Reed
Chief Purchasing Officer & VP of Global Supply Chainno datano datano data

2.7yrs

Average Tenure

54yo

Average Age

Experienced Management: S9Q's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Gentile
President3.75yrsUS$11.07m0.29% $6.0m
Paul Fulchino
Independent Director13.5yrsUS$248.06k0.025% $504.9k
Irene Esteves
Independent Director5yrsUS$255.05kno data
John Plueger
Independent Director5.83yrsUS$230.08k0.021% $428.1k
Laura Wright
Independent Director2.17yrsUS$230.08k0.0098% $201.2k
Richard Gephardt
Director13.5yrsUS$527.55k0.0091% $187.8k
Ronald Kadish
Independent Director13.5yrsUS$242.04k0.024% $498.3k
Charles Chadwell
Independent Director12.08yrsUS$242.04k0.020% $403.6k
Stephen Cambone
Independent Director0.58yrUS$115.32k0.0052% $106.4k
Robert Johnson
Independent Chairman of the Boardno dataUS$346.23k0.018% $363.1k

5.8yrs

Average Tenure

68.5yo

Average Age

Experienced Board: S9Q's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

Company Information

Spirit AeroSystems Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spirit AeroSystems Holdings, Inc.
  • Ticker: S9Q
  • Exchange: DB
  • Founded: 1927
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$2.287b
  • Listing Market Cap: US$2.057b
  • Shares outstanding: 105.54m
  • Website: https://www.spiritaero.com

Number of Employees


Location

  • Spirit AeroSystems Holdings, Inc.
  • 3801 South Oliver Street
  • Wichita
  • Kansas
  • 67210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPRNYSE (New York Stock Exchange)YesClass A Common StockUSUSDNov 2006
S9QDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2006

Biography

Spirit AeroSystems Holdings, Inc. designs, manufactures, and supplies commercial aero structures in the United States and internationally. The company operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs); and related spares, as well as maintenance, repairs, and overhaul (MRO) services. The Propulsion Systems segment offers struts/pylons; nacelles, including thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as related spares and MRO services. The Wing Systems provides wings and wing components, such as flight control surfaces; and other miscellaneous structural parts primarily to aircraft OEMs, as well as related spares and MRO services. Spirit AeroSystems Holdings, Inc. also offers low observables comprising radar absorbent and translucent materials; rotorcrafts that include forward cockpits and cabins; and other military services, such as fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 22:06
End of Day Share Price2020/05/29 00:00
Earnings2020/04/02
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.