BA
Boeing Co
Industrial/Transportation
01/15/2016
Presented
| Date | 01/13/2016 |
| Price | $128.12 |
| Market Cap | $88.12B |
| Ent Value | $89.27B |
| P/E Ratio | 16.12x |
| Book Value | $10.05 |
| Div Yield | 0% |
| Shares O/S | 687.80M |
| Ave Daily Vol | 3,786,291 |
| Short Int | 3.26% |
Current
| Price | $152.35 |
| Market Cap | $93.87B |
| The Boeing Co. is an aerospace company that manufactures commercial jetliners and defense, space and security systems. Its products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. The company is organized into two business units: Boeing Commercial Airplanes and Boeing Defense, Space & Security. The Commercial Airplanes segment develops, produces and markets commercial jet aircraft and provides related support services, principally to the commercial airline industry worldwide. It produces commercial aircraft and offers a family of commercial jetliners designed to meet a broad spectrum of passenger and cargo requirements of domestic and non-U.S. airlines. This family of commercial jet aircraft in production includes the 737 narrow-body model and the 747, 767, 777 and 787 wide-body models. Its Defense, Space & Security business provides end-to-end services for large-scale systems that enhance air-, land-, sea- and space-based platforms for global military, government and commercial customers. In addition to designing, producing, modifying and supporting fighters, bombers, transports, rotorcraft, aerial refuelers, missiles, munitions and spacecraft for military, civil and commercial use, it is developing enhanced capabilities through network-enabled solutions, communications and intelligence, surveillance and reconnaissance technologies. Its Defense, Space & Security business comprises three segments: Boeing Military Aircraft, Network & Space Systems and Global Services & Support. The Boeing Military Aircraft segment is engaged in 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 Network & Space Systems segment is engaged in the research, development, production and modification of the following products and related services: electronics and information systems, including command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; strategic missile and defense systems; space and intelligence systems, including satellites and commercial satellite launch vehicles; and space exploration. The Global Services & Support segment provides customers with mission readiness through total support solutions. Its global services business sustains aircraft and systems with a full spectrum of products and services through integrated logistics, including supply chain management and engineering support; maintenance, modification and upgrades for aircraft; and training systems and government services, including pilot and maintenance training. The Global Services & Support segment's international operations include Boeing Defence UK Ltd., Boeing Defence Australia, and Alsalam Aircraft Co., a joint venture. The Boeing Capital segment facilitates financing they need to buy and take delivery of their Boeing product and manages overall financing exposure. BCC's portfolio consists of equipment under operating leases, finance leases, notes and other receivables, assets held for sale or re-lease and investments. The Other segment includes the unallocated activities of Engineering, Operations & Technology and Shared Services Group, as well as intercompany guarantees provided to Boeing Capital. The Engineering, Operations & Technology provides technical and functional capabilities, including information technology, research and development, test and evaluation, technology strategy development, environmental remediation management and intellectual property management. The company was founded by William Edward Boeing on July 15, 1916 and is headquartered in Chicago, IL. |
Publicly traded companies mentioned herein: Boeing Co (BA)
Highlights
The presenter is short shares of Boeing (BA) on the expectation of a “vicious” reversal in the aerospace cycle. He notes a large disparity between the bull and bear outlooks, but feels a careful look into BA’s cash flow lends credence to a downside scenario. Though the aerospace sector did well during the last economic slowdown, the presenter feels current conditions are not as favorable for the industry, and that multiples will rapidly contract if/when investors start to get more conservative. It would “not surprise him” if BA shares drop to ~$95.
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