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BAE SYSTEMS PLC (BSP.DE) Stock Fundamental Analysis

FRA:BSP - Deutsche Boerse Ag - GB0002634946 - Common Stock - Currency: EUR

21.13  +0.26 (+1.25%)

Fundamental Rating

5

BSP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 44 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of BSP while its profitability can be described as average. BSP has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

BSP had positive earnings in the past year.
In the past year BSP had a positive cash flow from operations.
Each year in the past 5 years BSP has been profitable.
In the past 5 years BSP always reported a positive cash flow from operatings.
BSP.DE Yearly Net Income VS EBIT VS OCF VS FCFBSP.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

1.2 Ratios

BSP has a better Return On Assets (4.94%) than 68.18% of its industry peers.
BSP has a Return On Equity of 16.34%. This is in the better half of the industry: BSP outperforms 63.64% of its industry peers.
BSP's Return On Invested Capital of 7.78% is in line compared to the rest of the industry. BSP outperforms 56.82% of its industry peers.
BSP had an Average Return On Invested Capital over the past 3 years of 8.62%. This is in line with the industry average of 8.79%.
Industry RankSector Rank
ROA 4.94%
ROE 16.34%
ROIC 7.78%
ROA(3y)5.33%
ROA(5y)5.43%
ROE(3y)16.2%
ROE(5y)20.05%
ROIC(3y)8.62%
ROIC(5y)8.6%
BSP.DE Yearly ROA, ROE, ROICBSP.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

BSP's Profit Margin of 7.49% is fine compared to the rest of the industry. BSP outperforms 75.00% of its industry peers.
BSP's Profit Margin has declined in the last couple of years.
BSP has a Operating Margin of 9.64%. This is in the better half of the industry: BSP outperforms 65.91% of its industry peers.
BSP's Operating Margin has been stable in the last couple of years.
BSP's Gross Margin of 70.27% is amongst the best of the industry. BSP outperforms 90.91% of its industry peers.
BSP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 9.64%
PM (TTM) 7.49%
GM 70.27%
OM growth 3Y-1.32%
OM growth 5Y-0.72%
PM growth 3Y-6.19%
PM growth 5Y-1.61%
GM growth 3Y0.6%
GM growth 5Y0.2%
BSP.DE Yearly Profit, Operating, Gross MarginsBSP.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BSP is destroying value.
BSP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BSP has less shares outstanding
Compared to 1 year ago, BSP has a worse debt to assets ratio.
BSP.DE Yearly Shares OutstandingBSP.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
BSP.DE Yearly Total Debt VS Total AssetsBSP.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

BSP has an Altman-Z score of 2.52. This is not the best score and indicates that BSP is in the grey zone with still only limited risk for bankruptcy at the moment.
BSP has a Altman-Z score (2.52) which is in line with its industry peers.
BSP has a debt to FCF ratio of 5.42. This is a neutral value as BSP would need 5.42 years to pay back of all of its debts.
BSP has a Debt to FCF ratio (5.42) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.87 indicates that BSP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.87, BSP is not doing good in the industry: 65.91% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 5.42
Altman-Z 2.52
ROIC/WACC0.86
WACC9.05%
BSP.DE Yearly LT Debt VS Equity VS FCFBSP.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

BSP has a Current Ratio of 1.03. This is a normal value and indicates that BSP is financially healthy and should not expect problems in meeting its short term obligations.
BSP has a worse Current ratio (1.03) than 70.45% of its industry peers.
BSP has a Quick Ratio of 1.03. This is a bad value and indicates that BSP is not financially healthy enough and could expect problems in meeting its short term obligations.
BSP's Quick ratio of 0.91 is fine compared to the rest of the industry. BSP outperforms 72.73% of its industry peers.
Industry RankSector Rank
Current Ratio 1.03
Quick Ratio 0.91
BSP.DE Yearly Current Assets VS Current LiabilitesBSP.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

5

3. Growth

3.1 Past

BSP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, which is quite good.
The Earnings Per Share has been growing by 8.10% on average over the past years. This is quite good.
Looking at the last year, BSP shows a quite strong growth in Revenue. The Revenue has grown by 14.01% in the last year.
The Revenue has been growing slightly by 7.53% on average over the past years.
EPS 1Y (TTM)8.33%
EPS 3Y12.56%
EPS 5Y8.1%
EPS Q2Q%10.57%
Revenue 1Y (TTM)14.01%
Revenue growth 3Y10.46%
Revenue growth 5Y7.53%
Sales Q2Q%35.05%

3.2 Future

Based on estimates for the next years, BSP will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.14% on average per year.
BSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.92% yearly.
EPS Next Y13.81%
EPS Next 2Y12.27%
EPS Next 3Y11.6%
EPS Next 5Y11.14%
Revenue Next Year9.13%
Revenue Next 2Y7.79%
Revenue Next 3Y7.35%
Revenue Next 5Y5.92%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
BSP.DE Yearly Revenue VS EstimatesBSP.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
BSP.DE Yearly EPS VS EstimatesBSP.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6 0.8 1

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 27.09 indicates a quite expensive valuation of BSP.
Compared to the rest of the industry, the Price/Earnings ratio of BSP indicates a somewhat cheap valuation: BSP is cheaper than 79.55% of the companies listed in the same industry.
BSP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.84 indicates a rather expensive valuation of BSP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BSP indicates a somewhat cheap valuation: BSP is cheaper than 61.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.11. BSP is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 27.09
Fwd PE 23.84
BSP.DE Price Earnings VS Forward Price EarningsBSP.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

BSP's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, BSP is valued a bit cheaper than 70.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.7
EV/EBITDA 19.03
BSP.DE Per share dataBSP.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BSP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)3.35
EPS Next 2Y12.27%
EPS Next 3Y11.6%

6

5. Dividend

5.1 Amount

BSP has a Yearly Dividend Yield of 1.78%. Purely for dividend investing, there may be better candidates out there.
BSP's Dividend Yield is rather good when compared to the industry average which is at 1.18. BSP pays more dividend than 93.18% of the companies in the same industry.
BSP's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
Industry RankSector Rank
Dividend Yield 1.78%

5.2 History

On average, the dividend of BSP grows each year by 6.50%, which is quite nice.
Dividend Growth(5Y)6.5%
Div Incr Years3
Div Non Decr Years3
BSP.DE Yearly Dividends per shareBSP.DE Yearly Dividends per shareYearly Dividends per share 2018 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

BSP pays out 49.51% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of BSP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.51%
EPS Next 2Y12.27%
EPS Next 3Y11.6%
BSP.DE Yearly Income VS Free CF VS DividendBSP.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
BSP.DE Dividend Payout.BSP.DE Dividend Payout, showing the Payout Ratio.BSP.DE Dividend Payout.PayoutRetained Earnings

BAE SYSTEMS PLC

FRA:BSP (7/29/2025, 7:00:00 PM)

21.13

+0.26 (+1.25%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-19 2025-02-19/bmo
Earnings (Next)07-30 2025-07-30
Inst Owners77.08%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap63.65B
Analysts78.4
Price Target22.38 (5.92%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.78%
Yearly Dividend0.36
Dividend Growth(5Y)6.5%
DP49.51%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)13.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.78%
Valuation
Industry RankSector Rank
PE 27.09
Fwd PE 23.84
P/S 2.25
P/FCF 27.7
P/OCF 18.21
P/B 4.91
P/tB N/A
EV/EBITDA 19.03
EPS(TTM)0.78
EY3.69%
EPS(NY)0.89
Fwd EY4.2%
FCF(TTM)0.76
FCFY3.61%
OCF(TTM)1.16
OCFY5.49%
SpS9.39
BVpS4.31
TBVpS-1.83
PEG (NY)1.96
PEG (5Y)3.35
Profitability
Industry RankSector Rank
ROA 4.94%
ROE 16.34%
ROCE 9.1%
ROIC 7.78%
ROICexc 8.79%
ROICexgc 28.95%
OM 9.64%
PM (TTM) 7.49%
GM 70.27%
FCFM 8.12%
ROA(3y)5.33%
ROA(5y)5.43%
ROE(3y)16.2%
ROE(5y)20.05%
ROIC(3y)8.62%
ROIC(5y)8.6%
ROICexc(3y)10.37%
ROICexc(5y)10.33%
ROICexgc(3y)36.39%
ROICexgc(5y)39.39%
ROCE(3y)10.09%
ROCE(5y)10.07%
ROICexcg growth 3Y-7.69%
ROICexcg growth 5Y-4.95%
ROICexc growth 3Y-3.67%
ROICexc growth 5Y-3.08%
OM growth 3Y-1.32%
OM growth 5Y-0.72%
PM growth 3Y-6.19%
PM growth 5Y-1.61%
GM growth 3Y0.6%
GM growth 5Y0.2%
F-Score5
Asset Turnover0.66
Health
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 5.42
Debt/EBITDA 3.01
Cap/Depr 115.19%
Cap/Sales 4.23%
Interest Coverage 5.65
Cash Conversion 92.75%
Profit Quality 108.37%
Current Ratio 1.03
Quick Ratio 0.91
Altman-Z 2.52
F-Score5
WACC9.05%
ROIC/WACC0.86
Cap/Depr(3y)105.99%
Cap/Depr(5y)90.56%
Cap/Sales(3y)3.94%
Cap/Sales(5y)3.33%
Profit Quality(3y)142.34%
Profit Quality(5y)118.6%
High Growth Momentum
Growth
EPS 1Y (TTM)8.33%
EPS 3Y12.56%
EPS 5Y8.1%
EPS Q2Q%10.57%
EPS Next Y13.81%
EPS Next 2Y12.27%
EPS Next 3Y11.6%
EPS Next 5Y11.14%
Revenue 1Y (TTM)14.01%
Revenue growth 3Y10.46%
Revenue growth 5Y7.53%
Sales Q2Q%35.05%
Revenue Next Year9.13%
Revenue Next 2Y7.79%
Revenue Next 3Y7.35%
Revenue Next 5Y5.92%
EBIT growth 1Y2.64%
EBIT growth 3Y9.01%
EBIT growth 5Y6.75%
EBIT Next Year41.8%
EBIT Next 3Y17.4%
EBIT Next 5Y15.39%
FCF growth 1Y-32.64%
FCF growth 3Y11.64%
FCF growth 5Y19.64%
OCF growth 1Y-20.81%
OCF growth 3Y17.06%
OCF growth 5Y19.7%