BAE Systems
Market Cap
UK£16.6b
Last Updated
2021/04/11 19:10 UTC
Data Sources
Company Financials +
Executive Summary
BAE Systems plc provides defense, aerospace, and security solutions worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer with adequate balance sheet.
Similar Companies
Share Price & News
How has BAE Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BA. is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: BA.'s weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.9%
BA.
0.8%
GB Aerospace & Defense
2.4%
GB Market
1 Year Return
-4.3%
BA.
6.1%
GB Aerospace & Defense
23.6%
GB Market
Return vs Industry: BA. underperformed the UK Aerospace & Defense industry which returned 6.1% over the past year.
Return vs Market: BA. underperformed the UK Market which returned 24% over the past year.
Shareholder returns
| BA. | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 0.8% | 2.4% |
| 30 Day | 2.6% | 2.7% | 3.0% |
| 90 Day | 3.7% | 4.0% | 4.0% |
| 1 Year | 0.3%-4.3% | 10.2%6.1% | 29.4%23.6% |
| 3 Year | -1.4%-13.3% | 6.9%-3.8% | 14.8%1.3% |
| 5 Year | 23.3%0.6% | 27.5%7.6% | 40.4%14.0% |
Long-Term Price Volatility Vs. Market
How volatile is BAE Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Is BAE Systems plc's (LON:BA.) Share Price Doing?3 weeks ago | Simply Wall St
We Think BAE Systems (LON:BA.) Can Stay On Top Of Its Debt1 month ago | Simply Wall St
Have Insiders Been Buying BAE Systems plc (LON:BA.) Shares?Valuation
Is BAE Systems undervalued compared to its fair value and its price relative to the market?
14.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BA. (£5.15) is trading below our estimate of fair value (£6.03)
Significantly Below Fair Value: BA. is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BA. is good value based on its PE Ratio (12.7x) compared to the GB Aerospace & Defense industry average (19.7x).
PE vs Market: BA. is good value based on its PE Ratio (12.7x) compared to the UK market (25.7x).
Price to Earnings Growth Ratio
PEG Ratio: BA. is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: BA. is overvalued based on its PB Ratio (3.6x) compared to the GB Aerospace & Defense industry average (2.2x).
Future Growth
How is BAE Systems forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
6.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BA.'s forecast earnings growth (6.7% per year) is above the savings rate (1%).
Earnings vs Market: BA.'s earnings (6.7% per year) are forecast to grow slower than the UK market (20.8% per year).
High Growth Earnings: BA.'s earnings are forecast to grow, but not significantly.
Revenue vs Market: BA.'s revenue (5.1% per year) is forecast to grow slower than the UK market (6.5% per year).
High Growth Revenue: BA.'s revenue (5.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BA.'s Return on Equity is forecast to be high in 3 years time (25.4%)
Past Performance
How has BAE Systems performed over the past 5 years?
9.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BA. has high quality earnings.
Growing Profit Margin: BA.'s current net profit margins (6.7%) are lower than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: BA.'s earnings have grown by 9.4% per year over the past 5 years.
Accelerating Growth: BA.'s has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BA. had negative earnings growth (-11.9%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (3.3%).
Return on Equity
High ROE: Whilst BA.'s Return on Equity (27.86%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is BAE Systems's financial position?
Financial Position Analysis
Short Term Liabilities: BA.'s short term assets (£9.4B) exceed its short term liabilities (£9.4B).
Long Term Liabilities: BA.'s short term assets (£9.4B) do not cover its long term liabilities (£13.2B).
Debt to Equity History and Analysis
Debt Level: BA.'s debt to equity ratio (114.9%) is considered high.
Reducing Debt: BA.'s debt to equity ratio has reduced from 134.6% to 114.9% over the past 5 years.
Debt Coverage: BA.'s debt is well covered by operating cash flow (20.6%).
Interest Coverage: BA.'s interest payments on its debt are well covered by EBIT (6.1x coverage).
Balance Sheet
Dividend
What is BAE Systems's current dividend yield, its reliability and sustainability?
4.60%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: BA.'s dividend (4.6%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: BA.'s dividend (4.6%) is in the top 25% of dividend payers in the UK market (4.19%)
Stability and Growth of Payments
Stable Dividend: BA.'s dividends per share have been stable in the past 10 years.
Growing Dividend: BA.'s dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (58.2%), BA.'s dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BA.'s dividends in 3 years are forecast to be covered by earnings (50.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Charles Woodburn (48 yo)
3.75yrs
Tenure
UK£3,934,000
Compensation
Dr. Charles Woodburn has been the Group Chief Executive of BAE Systems plc since July 1, 2017 and as its Executive Director since May 9, 2016. Dr. Woodburn served as the Chief Operating Officer of BAE Syst...
CEO Compensation Analysis
Compensation vs Market: Charles's total compensation ($USD5.40M) is above average for companies of similar size in the UK market ($USD3.55M).
Compensation vs Earnings: Charles's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: BA.'s management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: BA.'s board of directors are considered experienced (6 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
BAE Systems plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: BAE Systems plc
- Ticker: BA.
- Exchange: LSE
- Founded: 1970
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: UK£16.566b
- Shares outstanding: 3.22b
- Website: https://www.baesystems.com
Number of Employees
Location
- BAE Systems plc
- Warwick House
- PO Box 87
- Farnborough
- Hampshire
- GU14 6YU
- United Kingdom
Listings
Biography
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 Mari...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/11 19:10 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.