OTCPK:BAES.Y

Stock Analysis Report

Executive Summary

BAE Systems plc provides defense, aerospace, and security solutions worldwide.

Snowflake

Fundamentals

6 star dividend payer and good value.


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


Market Performance


7 Day Return

2.9%

OTCPK:BAES.Y

-1.3%

US Aerospace & Defense

-1.2%

US Market


1 Year Return

-27.4%

OTCPK:BAES.Y

3.5%

US Aerospace & Defense

3.4%

US Market

BAES.Y underperformed the Aerospace & Defense industry which returned 3.1% over the past year.

BAES.Y underperformed the Market in United States of America which returned 3.9% over the past year.


Share holder returns

BAES.YIndustryMarket
7 Day2.9%-1.3%-1.2%
30 Day5.0%2.1%1.2%
90 Day-1.5%6.2%1.7%
1 Year-26.3%-27.4%5.5%3.5%5.7%3.4%
3 Year1.5%-6.6%51.7%43.3%45.0%35.5%
5 Year5.5%-10.6%90.1%72.1%59.3%41.6%

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

No news available

Valuation

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

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

BAE Systems is good value based on earnings compared to the US Aerospace & Defense industry average.

BAE Systems is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

BAE Systems is poor value based on expected growth next year.


Price Based on Value of Assets

BAE Systems is overvalued based on assets compared to the US Aerospace & Defense industry average.


Next Steps

Future Growth

How is BAE Systems expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

BAE Systems's revenue is expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).

BAE Systems's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).

BAE Systems's revenue growth is positive but not above the United States of America market average.

BAE Systems's earnings growth is positive but not above the United States of America market average.

BAE Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

BAE Systems is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has BAE Systems performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 not exceeded the US Aerospace & Defense industry average in the past year (20.9% vs 31.1%).


Return on Equity

BAE Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

BAE Systems used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

BAE Systems has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is BAE Systems's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

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

4.66%

Expected Dividend Yield


Dividend Yield and Payments Analysis

BAE Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

BAE Systems's dividend is above the markets top 25% of dividend payers in United States of America (3.74%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

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).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Charles Woodburn (47yo)

2.0yrs

Tenure

UK£2,416,000

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

Charles's remuneration is lower than average for companies of similar size in United States of America.

Charles's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

59yo

Average Age

The average tenure for the BAE Systems management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

62.5yo

Average Age

The tenure for the BAE Systems board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Rolf Rue

    Regional Managing Director of New Strategic Markets

  • Nigel Whitehead (56yo)

    Chief Technology Officer

    • Tenure: 1.5yrs
  • Neils Petersen

    Chief of Staff and Executive Vice President of Marketing Operations

  • Jerry DeMuro (63yo)

    Executive Director & CEO of BAE Systems

    • Compensation: £3.20m
  • Philip Bramwell (62yo)

    Group General Counsel

    • Tenure: 12.5yrs
  • Karin Hoeing

    Group Human Resources Director

    • Tenure: 1.4yrs
  • Martin Cooper

    Investor Relations Director

  • Peter Lynas

    Group Finance Director & Executive Director

    • Tenure: 8.3yrs
    • Compensation: £1.93m
  • Mark Phillips

    Group Communications Director

    • Tenure: 0.5yrs
  • Charles Woodburn (47yo)

    Group CEO & Executive Director

    • Tenure: 2.0yrs
    • Compensation: £2.42m

Board Members

  • Paula G. Reynolds (62yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: £141.00k
  • Jerry DeMuro (63yo)

    Executive Director & CEO of BAE Systems

    • Tenure: 5.4yrs
    • Compensation: £3.20m
  • Ian Tyler (59yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: £117.00k
  • Roger Carr (72yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: £700.00k
  • Michael Rouse (71yo)

    Group Marketing Director and Director of BAE Systems Inc

  • Nick Rose (61yo)

    Senior Independent Director

    • Tenure: 6.5yrs
    • Compensation: £140.00k
  • Michael Chertoff (65yo)

    Chairman of BAE Systems

  • Peter Lynas

    Group Finance Director & Executive Director

    • Tenure: 8.3yrs
    • Compensation: £1.93m
  • Charles Woodburn (47yo)

    Group CEO & Executive Director

    • Tenure: 3.2yrs
    • Compensation: £2.42m
  • Earl Cairns

    Chairman of Advisory Board on Tanzania

    • Tenure: 8.1yrs

Company Information

BAE Systems plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BAE Systems plc
  • Ticker: BAES.Y
  • Exchange: OTCPK
  • Founded: 1979
  • Industry: aerospace and defense
  • Sector: capital goods
  • Market Cap: UK£16.747b
  • Listing Market Cap: UK£20.937b
  • Shares outstanding: 3.20b
  • Website: Click here

Number of Employees


Location

  • BAE Systems plc
  • 6 Carlton Gardens
  • London
  • Greater London
  • SW1Y 5AD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BAES.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BA.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BSPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
BA1 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
BAES.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNov 1998

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/19 23:51
End of Day Share Price2019/07/19 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.