BAE SYSTEMS PLC (BSP.DE) Stock Fundamental Analysis
FRA:BSP - Deutsche Boerse Ag - GB0002634946 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to BSP. BSP was compared to 39 industry peers in the Aerospace & Defense industry. BSP has an average financial health and profitability rating. BSP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BSP was profitable.
In the past year BSP had a positive cash flow from operations.
In the past 5 years BSP has always been profitable.
In the past 5 years BSP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.94%, BSP is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
With a Return On Equity value of 16.34%, BSP perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
BSP has a Return On Invested Capital of 7.78%. This is comparable to the rest of the industry: BSP outperforms 51.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BSP is in line with the industry average of 9.46%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of BSP (7.49%) is better than 69.23% of its industry peers.
In the last couple of years the Profit Margin of BSP has declined.
With a decent Operating Margin value of 9.64%, BSP is doing good in the industry, outperforming 64.10% of the companies in the same industry.
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 89.74% of its industry peers.
BSP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BSP is destroying value.
BSP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BSP has been reduced compared to 5 years ago.
The debt/assets ratio for BSP is higher compared to a year ago.
2.2 Solvency
BSP has an Altman-Z score of 2.47. 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.
The Altman-Z score of BSP (2.47) is better than 61.54% of 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.
With a Debt to FCF ratio value of 5.42, BSP perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that BSP is somewhat dependend on debt financing.
The Debt to Equity ratio of BSP (0.87) is worse than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.87
WACC8.94%
2.3 Liquidity
A Current Ratio of 1.03 indicates that BSP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.03, BSP is not doing good in the industry: 71.79% of the companies in the same industry are doing better.
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 has a Quick ratio of 0.91. This is in the better half of the industry: BSP outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.91 |
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.
The Revenue has grown by 14.01% in the past year. This is quite good.
Measured over the past years, BSP shows a small growth in Revenue. The Revenue has been growing by 7.53% on average per year.
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
The Earnings Per Share is expected to grow by 10.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.03% on average over the next years.
EPS Next Y13.81%
EPS Next 2Y12.27%
EPS Next 3Y11.6%
EPS Next 5Y10.83%
Revenue Next Year9.98%
Revenue Next 2Y8.18%
Revenue Next 3Y7.49%
Revenue Next 5Y6.03%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.10, the valuation of BSP can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BSP indicates a somewhat cheap valuation: BSP is cheaper than 79.49% 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 24.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.12 indicates a rather expensive valuation of BSP.
61.54% of the companies in the same industry are more expensive than BSP, based on the Price/Forward Earnings ratio.
BSP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 22.12 |
4.2 Price Multiples
BSP's Enterprise Value to EBITDA ratio is in line with the industry average.
71.79% of the companies in the same industry are more expensive than BSP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.71 | ||
| EV/EBITDA | 18.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BSP does not grow enough to justify the current Price/Earnings ratio.
BSP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)3.1
EPS Next 2Y12.27%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
BSP has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.35, BSP pays a better dividend. On top of this BSP pays more dividend than 82.05% of the companies listed in the same industry.
BSP's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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
5.3 Sustainability
49.51% of the earnings are spent on dividend by BSP. This is a bit on the high side, but may be sustainable.
BSP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.51%
EPS Next 2Y12.27%
EPS Next 3Y11.6%
FRA:BSP (5/9/2025, 7:00:00 PM)
20.08
-0.59 (-2.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners70.53%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap60.47B
Analysts76
Price Target19.67 (-2.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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)2.51%
PT rev (3m)11.41%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.14%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 22.12 | ||
| P/S | 2.09 | ||
| P/FCF | 25.71 | ||
| P/OCF | 16.9 | ||
| P/B | 4.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.48 |
EPS(TTM)0.8
EY3.98%
EPS(NY)0.91
Fwd EY4.52%
FCF(TTM)0.78
FCFY3.89%
OCF(TTM)1.19
OCFY5.92%
SpS9.62
BVpS4.41
TBVpS-1.87
PEG (NY)1.82
PEG (5Y)3.1
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.47 |
F-Score5
WACC8.94%
ROIC/WACC0.87
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 5Y10.83%
Revenue 1Y (TTM)14.01%
Revenue growth 3Y10.46%
Revenue growth 5Y7.53%
Sales Q2Q%35.05%
Revenue Next Year9.98%
Revenue Next 2Y8.18%
Revenue Next 3Y7.49%
Revenue Next 5Y6.03%
EBIT growth 1Y2.64%
EBIT growth 3Y9.01%
EBIT growth 5Y6.75%
EBIT Next Year39.73%
EBIT Next 3Y16.49%
EBIT Next 5Y12.93%
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%