AIRBUS SE (AIR.DE) Stock Fundamental Analysis
FRA:AIR - Deutsche Boerse Ag - NL0000235190 - Common Stock - Currency: EUR
Overall AIR gets a fundamental rating of 4 out of 10. We evaluated AIR against 41 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of AIR while its profitability can be described as average. AIR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
AIR had a positive operating cash flow in the past year.
AIR had positive earnings in 4 of the past 5 years.
AIR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AIR has a Return On Assets (3.35%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 20.14%, AIR belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
AIR has a Return On Invested Capital of 5.12%. This is in the lower half of the industry: AIR underperforms 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AIR is below the industry average of 9.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 20.14% | ||
| ROIC | 5.12% |
ROA(3y)3.38%
ROA(5y)2.61%
ROE(3y)25.26%
ROE(5y)20.54%
ROIC(3y)5.64%
ROIC(5y)4.87%
1.3 Margins
With a Profit Margin value of 6.33%, AIR perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
In the last couple of years the Profit Margin of AIR has declined.
AIR's Operating Margin of 6.88% is in line compared to the rest of the industry. AIR outperforms 43.90% of its industry peers.
In the last couple of years the Operating Margin of AIR has grown nicely.
AIR has a worse Gross Margin (15.18%) than 78.05% of its industry peers.
AIR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.88% | ||
| PM (TTM) | 6.33% | ||
| GM | 15.18% |
OM growth 3Y-10.35%
OM growth 5Y38.69%
PM growth 3Y-8.88%
PM growth 5YN/A
GM growth 3Y-5.84%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIR is destroying value.
AIR has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AIR has been increased compared to 5 years ago.
The debt/assets ratio for AIR has been reduced compared to a year ago.
2.2 Solvency
AIR has an Altman-Z score of 1.65. This is a bad value and indicates that AIR is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.65, AIR is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
AIR has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as AIR would need 3.45 years to pay back of all of its debts.
AIR has a better Debt to FCF ratio (3.45) than 63.41% of its industry peers.
AIR has a Debt/Equity ratio of 0.64. This is a neutral value indicating AIR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, AIR is in line with its industry, outperforming 43.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.69
WACC7.38%
2.3 Liquidity
A Current Ratio of 1.17 indicates that AIR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, AIR is doing worse than 60.98% of the companies in the same industry.
AIR has a Quick Ratio of 1.17. This is a bad value and indicates that AIR is not financially healthy enough and could expect problems in meeting its short term obligations.
AIR has a worse Quick ratio (0.50) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
AIR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.33%.
The Earnings Per Share has been decreasing by -2.79% on average over the past years.
AIR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.16%.
Measured over the past years, AIR shows a decrease in Revenue. The Revenue has been decreasing by -0.36% on average per year.
EPS 1Y (TTM)-4.33%
EPS 3Y-0.06%
EPS 5Y-2.79%
EPS Q2Q%67.61%
Revenue 1Y (TTM)5.16%
Revenue growth 3Y9.9%
Revenue growth 5Y-0.36%
Sales Q2Q%5.55%
3.2 Future
AIR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.12% yearly.
AIR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.34% yearly.
EPS Next Y25.24%
EPS Next 2Y24.28%
EPS Next 3Y22.29%
EPS Next 5Y21.12%
Revenue Next Year8.75%
Revenue Next 2Y10.3%
Revenue Next 3Y10.47%
Revenue Next 5Y9.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.80, which means the current valuation is very expensive for AIR.
75.61% of the companies in the same industry are more expensive than AIR, based on the Price/Earnings ratio.
AIR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.35, which indicates a rather expensive current valuation of AIR.
75.61% of the companies in the same industry are more expensive than AIR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, AIR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.8 | ||
| Fwd PE | 20.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIR is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AIR is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.96 | ||
| EV/EBITDA | 16.03 |
4.3 Compensation for Growth
AIR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AIR's earnings are expected to grow with 22.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y24.28%
EPS Next 3Y22.29%
5. Dividend
5.1 Amount
AIR has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
AIR's Dividend Yield is rather good when compared to the industry average which is at 1.19. AIR pays more dividend than 87.80% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, AIR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
On average, the dividend of AIR grows each year by 11.34%, which is quite nice.
Dividend Growth(5Y)11.34%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
50.00% of the earnings are spent on dividend by AIR. This is a bit on the high side, but may be sustainable.
AIR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50%
EPS Next 2Y24.28%
EPS Next 3Y22.29%
FRA:AIR (6/3/2025, 5:01:14 PM)
165.62
+3.02 (+1.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners28.97%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap131.22B
Analysts80.8
Price Target185.28 (11.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend2.81
Dividend Growth(5Y)11.34%
DP50%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)58.26%
Min EPS beat(2)12.5%
Max EPS beat(2)104.02%
EPS beat(4)3
Avg EPS beat(4)18.17%
Min EPS beat(4)-58.43%
Max EPS beat(4)104.02%
EPS beat(8)6
Avg EPS beat(8)12.58%
EPS beat(12)9
Avg EPS beat(12)19.67%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.25%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)2.89%
Revenue beat(4)1
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)2.89%
Revenue beat(8)1
Avg Revenue beat(8)-0.55%
Revenue beat(12)4
Avg Revenue beat(12)-0.14%
Revenue beat(16)5
Avg Revenue beat(16)-0.4%
PT rev (1m)-1.1%
PT rev (3m)3.71%
EPS NQ rev (1m)-16.34%
EPS NQ rev (3m)-19.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.16%
Revenue NQ rev (1m)-6.21%
Revenue NQ rev (3m)-8.04%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.8 | ||
| Fwd PE | 20.35 | ||
| P/S | 1.88 | ||
| P/FCF | 24.96 | ||
| P/OCF | 14.54 | ||
| P/B | 5.96 | ||
| P/tB | 26.78 | ||
| EV/EBITDA | 16.03 |
EPS(TTM)5.75
EY3.47%
EPS(NY)8.14
Fwd EY4.91%
FCF(TTM)6.64
FCFY4.01%
OCF(TTM)11.39
OCFY6.88%
SpS88.28
BVpS27.77
TBVpS6.18
PEG (NY)1.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 20.14% | ||
| ROCE | 6.78% | ||
| ROIC | 5.12% | ||
| ROICexc | 6.85% | ||
| ROICexgc | 10.11% | ||
| OM | 6.88% | ||
| PM (TTM) | 6.33% | ||
| GM | 15.18% | ||
| FCFM | 7.52% |
ROA(3y)3.38%
ROA(5y)2.61%
ROE(3y)25.26%
ROE(5y)20.54%
ROIC(3y)5.64%
ROIC(5y)4.87%
ROICexc(3y)7.87%
ROICexc(5y)6.79%
ROICexgc(3y)12.35%
ROICexgc(5y)10.76%
ROCE(3y)7.48%
ROCE(5y)6.45%
ROICexcg growth 3Y-10.63%
ROICexcg growth 5Y26.95%
ROICexc growth 3Y-8%
ROICexc growth 5Y30.7%
OM growth 3Y-10.35%
OM growth 5Y38.69%
PM growth 3Y-8.88%
PM growth 5YN/A
GM growth 3Y-5.84%
GM growth 5Y0.68%
F-Score7
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 127.04% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.05% | ||
| Profit Quality | 118.67% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 1.65 |
F-Score7
WACC7.38%
ROIC/WACC0.69
Cap/Depr(3y)118.47%
Cap/Depr(5y)100.09%
Cap/Sales(3y)4.72%
Cap/Sales(5y)4.28%
Profit Quality(3y)87.6%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.33%
EPS 3Y-0.06%
EPS 5Y-2.79%
EPS Q2Q%67.61%
EPS Next Y25.24%
EPS Next 2Y24.28%
EPS Next 3Y22.29%
EPS Next 5Y21.12%
Revenue 1Y (TTM)5.16%
Revenue growth 3Y9.9%
Revenue growth 5Y-0.36%
Sales Q2Q%5.55%
Revenue Next Year8.75%
Revenue Next 2Y10.3%
Revenue Next 3Y10.47%
Revenue Next 5Y9.34%
EBIT growth 1Y5.92%
EBIT growth 3Y-1.48%
EBIT growth 5Y38.19%
EBIT Next Year82.55%
EBIT Next 3Y33.9%
EBIT Next 5Y22.49%
FCF growth 1Y94.92%
FCF growth 3Y11.25%
FCF growth 5Y21.45%
OCF growth 1Y69.61%
OCF growth 3Y16.85%
OCF growth 5Y14.55%