BA
The Boeing Company
Industrial/Transportation
12/15/2014
Presented
| Date | 12/11/2014 |
| Price | $123.37 |
| Market Cap | $86.10B |
| Ent Value | $90.18B |
| P/E Ratio | 20.3x |
| Book Value | $20.35 |
| Div Yield | 0.01% |
| Shares O/S | 712.93M |
| Ave Daily Vol | 4,192,300 |
| Short Int | 4.40% |
Current
| Price | $152.35 |
| Market Cap | $93.87B |
| The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements, as well as provides related support services to the commercial airline industry. This segment also provides aviation services support, aircraft modifications, spares, training, maintenance documents, and technical advice to commercial and government customers. The Boeing Military Aircraft segment is involved in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems for the global strike and vertical lift, mobility, surveillance, and engagement. The Network & Space Systems segment is engaged in the research, development, production, and modification of electronics and information solutions; strategic missile and defense systems; space and intelligence systems; and space exploration products. The Global Services and Support segment offers a range of products and services comprising integrated logistics, including supply chain management and engineering support; maintenance, modification, and upgrades for aircraft; and training systems and government services, such as pilot and maintenance training. The Boeing Capital segment facilitates, arranges, structures, and provides financing solutions, such as equipment under operating leases, finance leases, notes and other receivables, assets held for sale or re-lease, and investments for its commercial airplanes customers. The Boeing Company was founded in 1916 and is based in Chicago, Illinois. |
Publicly traded companies mentioned herein: Boeing Co (BA), Dover Corp (DOV), Fastenal Company (FAST), Lockheed Martin Corporation (LMT), Northrop Grumman Corporation (NOC), Paccar Inc (PCAR)
Highlights
The presenter is long shares of Boeing (BA) and said it’s “absolutely his favorite name in the industrial sector at this time.” At current levels (~$122), BA appears to be relatively cheap compared to a variety of its peers, and the FCF story is compelling. He outlined a scenario in which BA is capable of generating a substantial portion of its present market cap in FCF over the next four-to-five years, and when considering its de minimis debt (less than one turn) and existing cash balance (~$10 billion), it is highly likely that management accelerates the return capital to shareholders.
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