BA - Embedded Expectations Analysis - 2021 06 25
The Boeing Company (BA:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 63.4x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their investments, improvement initiatives, and the delivery of their ordersSpecifically, management may lack confidence in their ability to execute their improvement initiatives and catch up on deliveries by the end of the year. Moreover, they may have concerns about their estimated 737 abnormal costs and the limited operational use for cargo and passenger airlift operations. Also, they may lack confidence in their ability to maintain their liquidity position and sustain bottom-line improvements. Finally, they may be exaggerating the improvements on their safety management systems, the long-term strength of their balance sheet, and the potential of their investments in research and development
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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