Boeing Co. (BA): Investor Discussion
Boeing Co.
Industrial/Transportation
06/05/2024
Presented
| Date | 06/03/2024 |
| Price | $184.57 |
| Market Cap | $113.30B |
| Ent Value | $158.69B |
| P/E Ratio | N/A |
| Book Value | N/A |
| Div Yield | 0% |
| Shares O/S | 613.88M |
| Ave Daily Vol | 7,703,907 |
| Short Int | 1.76% |
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 (BCA), Defense, Space and Security (BDS), Global Services (BGS), and Boeing Capital (BCC). 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 Arlington, VA. |
On June 3, 2024, DeMatteo Research hosted a discussion on The Boeing Co (BA) with four investors. The discussion centered around the importance of 737 Max deliveries, while the group also shared opinions on unit economics, management (current team, new CEO search, guidance), the balance sheet (impact of increasing debt load, deleveraging potential, risk of ratings downgrade), the defense business, and their outlooks for FCF and valuation.
Publicly traded companies mentioned herein: Airbus SE (AIR FP), Boeing Co/The (BA), Spirit AeroSystems Holdings Inc (SPR)
Main KPI
A bullish investor started the discussion by highlighting 737 Max deliveries as the main dynamic that will drive the stock’s performance. BA delivered 25 737 Max aircrafts in January, 18 in February, 24 in March, 17 in April, and 17 through May 27th. Significantly improved delivery levels are likely needed for the stock to trade up, but he is confident that the stock would perform in that scenario, with 30+ monthly deliveries leading to a $200+ share price based on corresponding cash flow generation.
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