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BAE Systems

LSE:BA.
Snowflake Description

Good value with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BA.
LSE
£16B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The last earnings update was 28 days ago. More info.


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BA. Share Price and Events
7 Day Returns
-3.5%
LSE:BA.
-1.8%
GB Aerospace & Defense
1.5%
GB Market
1 Year Returns
-19.6%
LSE:BA.
-11.8%
GB Aerospace & Defense
2.1%
GB Market
BA. Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BAE Systems (BA.) -3.5% 7.9% -3.8% -19.6% 1.1% 23.4%
GB Aerospace & Defense -1.8% 4% 0% -11.8% -0.5% -3.9%
GB Market 1.5% 5.2% 9.7% 2.1% 17.8% 6.8%
1 Year Return vs Industry and Market
  • BA. underperformed the Aerospace & Defense industry which returned -11.8% over the past year.
  • BA. underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.1% over the past year.
Price Volatility
BA.
Industry
5yr Volatility vs Market

BA. Value

 Is BAE Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of BAE Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for BAE Systems.

LSE:BA. Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:BA.
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.916 (1 + (1- 19%) (27.36%))
1.079
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.079 * 6.65%)
8.41%

Discounted Cash Flow Calculation for LSE:BA. using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for BAE Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:BA. DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.41%)
2019 900.78 Analyst x7 830.93
2020 1,108.37 Analyst x13 943.15
2021 1,350.27 Analyst x8 1,059.90
2022 1,518.00 Analyst x5 1,099.17
2023 1,830.00 Analyst x2 1,222.34
2024 2,042.71 Est @ 11.62% 1,258.63
2025 2,216.44 Est @ 8.5% 1,259.78
2026 2,356.55 Est @ 6.32% 1,235.55
2027 2,469.50 Est @ 4.79% 1,194.38
2028 2,561.44 Est @ 3.72% 1,142.79
Present value of next 10 years cash flows £11,246.62
LSE:BA. DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £2,561.44 × (1 + 1.23%) ÷ (8.41% – 1.23%)
£36,119.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £36,119.42 ÷ (1 + 8.41%)10
£16,114.74
LSE:BA. Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £11,246.62 + £16,114.74
£27,361.37
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £27,361.37 / 3,199.54
£8.55
LSE:BA. Discount to Share Price
Calculation Result
Value per share (GBP) From above. £8.55
Current discount Discount to share price of £4.93
= -1 x (£4.93 - £8.55) / £8.55
42.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price BAE Systems is available for.
Intrinsic value
42%
Share price is £4.93 vs Future cash flow value of £8.55
Current Discount Checks
For BAE Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • BAE Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • BAE Systems's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for BAE Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BAE Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:BA. PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.31
LSE:BA. Share Price ** LSE (2019-04-24) in GBP £4.93
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PE Ratio Median Figure of 9 Publicly-Listed Aerospace & Defense Companies 21.57x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of BAE Systems.

LSE:BA. PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:BA. Share Price ÷ EPS (both in GBP)

= 4.93 ÷ 0.31

15.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BAE Systems is good value based on earnings compared to the GB Aerospace & Defense industry average.
  • BAE Systems is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does BAE Systems's expected growth come at a high price?
Raw Data
LSE:BA. PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
11.5%per year
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PEG Ratio Median Figure of 8 Publicly-Listed Aerospace & Defense Companies 1.87x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

LSE:BA. PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.75x ÷ 11.5%

1.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BAE Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on BAE Systems's assets?
Raw Data
LSE:BA. PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £1.74
LSE:BA. Share Price * LSE (2019-04-24) in GBP £4.93
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PB Ratio Median Figure of 12 Publicly-Listed Aerospace & Defense Companies 2.09x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.52x
LSE:BA. PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:BA. Share Price ÷ Book Value per Share (both in GBP)

= 4.93 ÷ 1.74

2.84x

* Primary Listing of BAE Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BAE Systems is overvalued based on assets compared to the GB Aerospace & Defense industry average.
X
Value checks
We assess BAE Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. BAE Systems has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BA. Future Performance

 How is BAE Systems expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BAE Systems expected to grow at an attractive rate?
  • BAE Systems's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • BAE Systems's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • BAE Systems's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:BA. Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:BA. Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 11.5%
LSE:BA. Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 6%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 12.1%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:BA. Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:BA. Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 22,059 2,598 2
2022-12-31 22,245 2,069 1,615 5
2021-12-31 21,779 1,964 1,470 8
2020-12-31 20,728 1,634 1,321 10
2019-12-31 19,746 1,505 1,216 10
LSE:BA. Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 16,821 1,200 1,000
2018-09-30 16,646 1,180 865
2018-06-30 17,568 1,159 756
2018-03-31 17,945 1,528 805
2017-12-31 17,224 1,897 827
2017-09-30 18,326 1,695 971
2017-06-30 18,427 1,493 1,074
2017-03-31 18,109 1,361 994
2016-12-31 17,790 1,229 913
2016-09-30 17,427 1,265 925
2016-06-30 17,064 1,300 936
2016-03-31 16,926 1,054 927

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BAE Systems's earnings are expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
  • BAE Systems's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:BA. Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from BAE Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:BA. Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.55 0.55 0.55 1.00
2022-12-31 0.50 0.52 0.49 2.00
2021-12-31 0.45 0.49 0.41 5.00
2020-12-31 0.41 0.44 0.38 7.00
2019-12-31 0.38 0.40 0.36 7.00
LSE:BA. Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.31
2018-09-30 0.27
2018-06-30 0.24
2018-03-31 0.25
2017-12-31 0.26
2017-09-30 0.31
2017-06-30 0.34
2017-03-31 0.31
2016-12-31 0.29
2016-09-30 0.29
2016-06-30 0.30
2016-03-31 0.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • BAE Systems is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess BAE Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
BAE Systems has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BA. Past Performance

  How has BAE Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare BAE Systems's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • BAE Systems's year on year earnings growth rate has been positive over the past 5 years.
  • BAE Systems's 1-year earnings growth exceeds its 5-year average (20.9% vs 17.4%)
  • BAE Systems's earnings growth has exceeded the GB Aerospace & Defense industry average in the past year (20.9% vs -10%).
Earnings and Revenue History
BAE Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from BAE Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:BA. Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 16,821.00 1,000.00 6,203.00
2018-09-30 16,645.50 864.50 6,200.00
2018-06-30 17,568.00 756.00 6,197.00
2018-03-31 17,945.00 805.00 6,213.00
2017-12-31 17,224.00 827.00 6,229.00
2017-09-30 18,326.00 971.00 6,032.50
2017-06-30 18,427.00 1,074.00 5,836.00
2017-03-31 18,108.50 993.50 5,837.00
2016-12-31 17,790.00 913.00 5,838.00
2016-09-30 17,427.00 924.50 5,514.50
2016-06-30 17,064.00 936.00 5,191.00
2016-03-31 16,925.50 927.00 5,195.50
2015-12-31 16,787.00 918.00 5,200.00
2015-09-30 16,548.00 809.50 5,087.50
2015-06-30 16,309.00 701.00 4,975.00
2015-03-31 15,869.50 720.50 4,967.50
2014-12-31 15,430.00 740.00 4,960.00
2014-09-30 15,712.50 463.00 5,080.50
2014-06-30 15,995.00 186.00 5,201.00
2014-03-31 16,429.50 177.00 5,210.00
2013-12-31 16,864.00 168.00 5,219.00
2013-09-30 16,854.50 556.00 5,341.50
2013-06-30 16,845.00 944.00 5,464.00
2013-03-31 16,768.00 946.00 5,462.50
2012-12-31 16,691.00 948.00 5,461.00
2012-06-30 16,927.00 1,165.00 5,415.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • BAE Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • BAE Systems used its assets less efficiently than the GB Aerospace & Defense industry average last year based on Return on Assets.
  • BAE Systems has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess BAE Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
BAE Systems has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BA. Health

 How is BAE Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up BAE Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • BAE Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • BAE Systems's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of BAE Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from BAE Systems Company Filings, last reported 3 months ago.

LSE:BA. Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,618.00 4,319.00 3,319.00
2018-09-30 5,618.00 4,319.00 3,319.00
2018-06-30 5,870.00 4,159.00 2,275.00
2018-03-31 5,870.00 4,159.00 2,275.00
2017-12-31 4,755.00 4,158.00 3,283.00
2017-09-30 4,784.00 4,158.00 3,283.00
2017-06-30 3,479.00 4,234.00 2,532.00
2017-03-31 3,479.00 4,234.00 2,532.00
2016-12-31 3,464.00 4,453.00 2,822.00
2016-09-30 3,464.00 4,453.00 2,822.00
2016-06-30 2,577.00 4,390.00 2,476.00
2016-03-31 2,577.00 4,390.00 2,476.00
2015-12-31 3,002.00 4,019.00 2,595.00
2015-09-30 3,002.00 4,019.00 2,595.00
2015-06-30 2,143.00 3,335.00 1,435.00
2015-03-31 2,143.00 3,335.00 1,435.00
2014-12-31 1,877.00 3,360.00 2,313.00
2014-09-30 1,877.00 3,360.00 2,313.00
2014-06-30 2,776.00 2,559.00 1,448.00
2014-03-31 2,776.00 2,559.00 1,448.00
2013-12-31 3,418.00 2,952.00 2,237.00
2013-09-30 3,418.00 2,952.00 2,237.00
2013-06-30 4,226.00 3,147.00 2,010.00
2013-03-31 4,226.00 3,147.00 2,010.00
2012-12-31 3,774.00 3,018.00 3,387.00
2012-06-30 3,774.00 3,319.00 2,535.00
  • BAE Systems's level of debt (76.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (86.4% vs 76.9% today).
  • Debt is well covered by operating cash flow (27.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.6x coverage).
X
Financial health checks
We assess BAE Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. BAE Systems has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BA. Dividends

 What is BAE Systems's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.5%
Current annual income from BAE Systems dividends. Estimated to be 4.95% next year.
If you bought £2,000 of BAE Systems shares you are expected to receive £90 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • BAE Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • BAE Systems's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.14%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:BA. Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 3.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.1%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:BA. Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.28 2.00
2022-12-31 0.26 7.00
2021-12-31 0.25 15.00
2020-12-31 0.24 17.00
2019-12-31 0.23 18.00
LSE:BA. Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-27 0.222 4.485
2019-02-21 0.222 4.708
2018-02-23 0.218 3.820
2017-03-28 0.213 3.531
2017-02-23 0.213 3.329
2016-02-29 0.209 3.892
2016-01-15 0.209 4.222
2015-03-18 0.205 4.266
2015-02-19 0.205 3.838
2014-07-31 0.203 4.371
2014-03-20 0.201 4.848
2014-02-20 0.201 4.931
2013-08-01 0.197 4.481
2013-02-21 0.195 4.958
2012-02-16 0.188 6.016
2012-02-15 0.188 5.713
2011-02-17 0.175 5.896
2011-02-16 0.175 5.027
2010-02-18 0.160 4.717
2010-02-17 0.160 4.490
2010-02-15 0.151 4.372

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, BAE Systems has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but BAE Systems only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of BAE Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess BAE Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can BAE Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BAE Systems has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BA. Management

 What is the CEO of BAE Systems's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Charles Woodburn
COMPENSATION £2,302,000
AGE 46
TENURE AS CEO 1.8 years
CEO Bio

Mr. Charles Woodburn has been the Chief Executive of BAE Systems plc since July 1, 2017 and as its Executive Director since May 9, 2016. Mr. Woodburn served as the Chief Operating Officer of BAE Systems plc from May 9, 2016 to July 1, 2017. Mr. Woodburn served as the Chief Operating Officer of BAE Systems plc since May 9, 2016 until July 1, 2017. Mr. Woodburn has over 20 years' international experience from the oil and gas industry gained in a number of senior management positions. Before joining BAE Systems, he was Chief Executive Officer of Expro Group. During a 15-year career with Schlumberger, he held a number of senior management positions in the Far East, Australia, France and the United States. Mr. Woodburn holds a First Class Honours Degree in Electrical Sciences and a PhD in Engineering from Cambridge University. He later completed an MBA at Erasmus University, Rotterdam.

CEO Compensation
  • Charles's compensation has been consistent with company performance over the past year.
  • Charles's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the BAE Systems management team in years:

1.8
Average Tenure
58
Average Age
  • The average tenure for the BAE Systems management team is less than 2 years, this suggests a new team.
Management Team

Charles Woodburn

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
46
TENURE
1.8 yrs

Peter Lynas

TITLE
Group Finance Director & Executive Director
COMPENSATION
£2M
TENURE
8 yrs

Jerry DeMuro

TITLE
Executive Director
COMPENSATION
£4M
AGE
62

Nigel Whitehead

TITLE
Chief Technology Officer
AGE
55
TENURE
1.3 yrs

Martin Cooper

TITLE
Investor Relations Director

Philip Bramwell

TITLE
Group General Counsel
AGE
61
TENURE
12.3 yrs

Neils Petersen

TITLE
Chief of Staff and Executive Vice President of Marketing Operations

Karin Hoeing

TITLE
Group Human Resources Director
TENURE
1.2 yrs

Rolf Rue

TITLE
Regional Managing Director of New Strategic Markets

Steve Meighan

TITLE
Regional Managing Director of Asia Pacific
Board of Directors Tenure

Average tenure and age of the BAE Systems board of directors in years:

6.1
Average Tenure
61.5
Average Age
  • The tenure for the BAE Systems board of directors is about average.
Board of Directors

Roger Carr

TITLE
Chairman
COMPENSATION
£696K
AGE
71
TENURE
5.2 yrs

Charles Woodburn

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
46
TENURE
2.9 yrs

Peter Lynas

TITLE
Group Finance Director & Executive Director
COMPENSATION
£2M
TENURE
8 yrs

Jerry DeMuro

TITLE
Executive Director
COMPENSATION
£4M
AGE
62
TENURE
5.2 yrs

Michael Chertoff

TITLE
Chairman of BAE Systems
AGE
64

Michael Rouse

TITLE
Group Marketing Director and Director of BAE Systems Inc
AGE
70

Nick Rose

TITLE
Senior Independent Director
COMPENSATION
£133K
AGE
60
TENURE
6.3 yrs

Paula G. Reynolds

TITLE
Independent Non-Executive Director
COMPENSATION
£137K
AGE
61
TENURE
8 yrs

Earl Cairns

TITLE
Chairman of Advisory Board on Tanzania
TENURE
7.8 yrs

Ian Tyler

TITLE
Independent Non-Executive Director
COMPENSATION
£109K
AGE
58
TENURE
5.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
03. Aug 18 Buy Elizabeth P. Corley Individual 02. Aug 18 02. Aug 18 9,000 £6.34 £57,051
X
Management checks
We assess BAE Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. BAE Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BA. News

Simply Wall St News

Here's What BAE Systems plc's (LON:BA.) P/E Ratio Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at BAE Systems plc's (LON:BA.) P/E ratio and reflect on what it tells us about the company's share price. … BAE Systems has a price to earnings ratio of 14.47, based on the last twelve months.

Simply Wall St -

Is BAE Systems plc's (LON:BA.) Future Growth Already Accounted For In Today's Price?

BAE Systems plc (LON:BA.) closed yesterday at £4.854, which left some investors asking whether the high earnings potential can still be justified at this price. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … According to the analysts covering the company, the following few years should bring about good growth prospects for BAE Systems

Simply Wall St -

Volatility 101: Should BAE Systems (LON:BA.) Shares Have Dropped 23%?

That downside risk was realized by BAE Systems plc (LON:BA.) shareholders over the last year, as the share price declined 23%. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the unfortunate twelve months during which the BAE Systems share price fell, it actually saw its earnings per share (EPS) improve by 17%.

Simply Wall St -

How BAE Systems plc (LON:BA.) Could Add Value To Your Portfolio

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on BAE Systems plc (LON:BA.) due to its excellent fundamentals in more than one area.

Simply Wall St -

BAE Systems plc (LON:BA.): Will The Growth Last?

Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … In December 2018, BAE Systems plc (LON:BA.) announced its latest earnings update, whicha

Simply Wall St -

How Many Insiders Bought BAE Systems plc (LON:BA.) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that even when the share price was higher, an insider wanted to purchase shares.

Simply Wall St -

Is BAE Systems plc (LON:BA.) A Financially Sound Company?

the key to their continued success lies in its financial health. … Let’s take a look at BAE Systems’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.

Simply Wall St -

Investors Are Undervaluing BAE Systems plc (LON:BA.) By 26.43%

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Despite Its High P/E Ratio, Is BAE Systems plc (LON:BA.) Still Undervalued?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate BAE Systems's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Buy BAE Systems plc (LON:BA.) For Its Dividend?

Historically, BAE Systems plc (LON:BA.) has been paying a dividend to shareholders. … Does BAE Systems tick all the boxes of a great dividend stock? … How I analyze a dividend stock

Simply Wall St -

BA. Company Info

Description

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Air, and Maritime. The Electronic Systems segment offers electronic warfare systems and electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance systems, and hybrid electric drive systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for C4ISR systems and enterprise IT networks; and solutions to enhance the collection, analysis, and processing of data across the US civilian and military intelligence communities. It also offers data intelligence solutions to defend against national-scale threats, protect their networks, data against attacks; security and intelligence solutions to the UK government and allied international governments; anti-fraud and regulatory compliance solutions; and security advisory and managed security services. The Platforms & Services (US) segment manufactures combat vehicles, weapons, and munitions, as well as provides ship repair services and the management of government-owned munitions facilities. The Air segment develops, manufactures, upgrades, and supports combat and jet trainer aircraft. The Maritime segment designs, manufactures, and supports surface ships, submarines, torpedoes, radars, and command and combat systems. It also supplies naval gun system; and provides ammunitions, precision munitions, artillery systems, and missile launchers. BAE Systems plc was incorporated in 1979 and is based in London, the United Kingdom.

Details
Name: BAE Systems plc
BA.
Exchange: LSE
Founded: 1979
£15,786,522,672
3,199,538,442
Website: http://www.baesystems.com
Address: BAE Systems plc
6 Carlton Gardens,
London,
Greater London, SW1Y 5AD,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE BA. Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK BAES.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB BSP Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE BAL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK BAES.Y SPONSORED ADR Pink Sheets LLC US USD 03. Nov 1998
Number of employees
Current staff
Staff numbers
85,800
BAE Systems employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 20:40
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/03/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.