BA - Embedded Expectations Analysis - 2021 02 17
The Boeing Company (BA:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 36.8x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about air passenger traffic, commercial airline weakness, and 787 issuesSpecifically, management may have concerns about the pandemic's impact on commercial customers and suppliers, negative aircraft purchasing trends, and continued weakness in global passenger traffic. Furthermore, they may lack confidence in their ability to provide digital solutions to customers, reduce facility and site costs, and win more Defense, Space, and Security (BDS) segment contracts. Moreover, management may be concerned about 787 quality issues, the impact of layoffs on their commitments to customers, and the performance of the commercial business. Finally, they may be exaggerating the progress of their enhanced enterprise safety management system and their ability to compete in China
The Boeing is an aerospace firm. The company's segments include: Commercial Airplanes, which develops, produces and markets commercial jet aircraft and provides fleet support services, mainly to the commercial airline industry; Defense, Space and Security, which engages in the research, development, production and modification of manned and unmanned military aircraft and weapons systems for strike, surveillance and mobility, vertical lift, and commercial derivative aircraft; Global Services, which provides supply chain and logistics management, pilot and maintenance training systems and services, and data analytics and digital services; and Boeing Capital, which manages overall financing exposure.
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