BA
Boeing Co
Industrial/Transportation
06/12/2019
Presented
| Date | 06/07/2019 |
| Price | $353.70 |
| Market Cap | $199.00B |
| Ent Value | $225.22B |
| P/E Ratio | 20.23x |
| Book Value | $0.22 |
| Div Yield | 2.32% |
| Shares O/S | 562.63M |
| Ave Daily Vol | 7,733,903 |
| Short Int | 0.95% |
Current
| Price | $152.35 |
| Market Cap | $93.87B |
| The Boeing Co. is an aerospace company, which engages in the manufacture of commercial jetliners and defense, space and security systems. It operates through the following segments: Commercial Airplanes; Defense, Space and Security; Global Services; and Boeing Capital. The Commercial Airplanes segment includes the development, production, and market of commercial jet aircraft and provides fleet support services, principally to the commercial airline industry worldwide. The Defense, Space and Security segment refers to the research, development, production and modification of manned and unmanned military aircraft and weapons systems for global strike, including fighter and combat rotorcraft aircraft and missile systems; global mobility, including tanker, rotorcraft and tilt-rotor aircraft; and airborne surveillance and reconnaissance, including command and control, battle management and airborne anti-submarine aircraft. The Global Services segment provides services to commercial and defense customers. The Boeing Capital segment seeks to ensure that Boeing customers have the financing they need to buy and take delivery of their Boeing product and manages overall financing exposure. The company was founded by William Edward Boeing on July 15, 1916 and is headquartered in Chicago, IL. |
Publicly traded companies mentioned herein: Airbus SE (AIR FP, EADSY), Boeing Co/The (BA), Garuda Indonesia Persero Tbk PT (GIAA IJ)
Highlights
The presenter is long shares of The Boeing Co (BA), which he feels has been the victim of misinformation in the media and the investment community. In the aftermath of the 737 Max crashes, market sentiment has soured, and shares of the stock have fallen ~20% from ~$440 to ~$350 while the overall market and BA’s comps have increased steadily. In the presenter’s view, neither the 737 Max issue nor the liabilities stemming from the crashes are relevant to the overall value of the business. Therefore, he describes the situation as a “time arbitrage” while BA gets the 737 Max planes back in the air. Once this occurs at some point in 2H’19, he expects BA’s efforts to rectify the Max situation and the strength of its other business units to allow for a stock price recovery with further growth potential.
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