Boeing Company (The)(BA) - Stock detail

Boeing Company (The)

US
BA
The Boeing Company(Listing date: 09/05/1934)

The Boeing Company was originally incorporated in the state of Washington in 1916 and in Delaware in 1934. The company is a global market leader in the design, development, manufacture, sale, service and support of commercial jetliners, military aircraft, satellites, missile defense, human spaceflight, and launch systems and services. It is one of the two manufacturers of commercial aircraft with more than 100 seats in the global commercial aviation industry and one of the largest defense contractors in the United States.

🎯 Boeing Company (The) (BA) 💰 Analysis Report 📅 Generated: 2026-06-11 17:41:31 ET

📅 Financial Report Periods Used in Analysis

  1. 2026-03-31
  2. 2025-12-31
  3. 2025-09-30
  4. 2025-06-30
  5. 2025-03-31

Note: A total of 5 financial reports were used for financial analysis. Based on the provided real data, here is a detailed fundamental analysis of Boeing Company (The) (Stock Symbol: BA).

1. Company Basic Information Analysis

Boeing Company (The) (BA) is a global aerospace and defense leader operating in the Industrials sector. Its core business involves the design, development, manufacturing, sale, and support of commercial jetliners, military aircraft, satellites, and space and security systems. The company operates through three segments: Commercial Airplanes; Defense, Space & Security; and Global Services. With approximately 172,000 employees, it is a critical player in its industry. The company’s largest shareholder is BlackRock (), with a 7.10% stake. The current stock price as of the analysis date (2026-06-12) is $221.63.

2. Financial Condition Assessment

The financial health of Boeing Company (The) shows significant strain, primarily due to a highly leveraged capital structure.

  • High Leverage: The Debt-to-Asset ratio of 96.37% indicates an extremely high level of debt relative to its assets. This leaves the company with minimal equity cushion and poses substantial financial risk, especially in a high-interest-rate environment or during industry downturns.
  • Weak Liquidity: The Current Ratio of 1.18 is just above the minimum threshold of 1.0, suggesting limited short-term financial flexibility. More concerning is the Quick Ratio of 0.35, which excludes inventory. This very low figure indicates the company may struggle to meet its immediate obligations without selling inventory, which for an aerospace manufacturer can be complex and time-consuming.
  • Conclusion: The financial condition is weak and high-risk. The massive debt load is the most critical concern, constraining operational flexibility and amplifying risk.

3. Profitability Analysis

Profitability metrics show a company in recovery but with performance that remains volatile and inconsistent.

  • Recent Performance: The latest Q1 2026 report shows a net loss of -$4 million, a significant improvement (89.19% year-over-year) from the prior year’s Q1 loss. Full-year 2025 showed a net profit of $2.23B, a strong rebound of 118.91%. However, the Q3 2025 report showed a massive loss of -$5.99B, indicating high volatility in earnings, likely due to one-time charges, production issues, or contract adjustments.
  • Margin Analysis: Margins are thin and inconsistent. The latest Q1 2026 Gross Margin is 11.46%, while the Net Margin is -0.03%. The full-year 2025 Gross Margin was only 4.79%. These low margins highlight intense cost pressures and operational inefficiencies.
  • Return Metrics: The TTM Return on Equity (ROE) of 288.04% is astronomically high but is a mathematical artifact of a very small or negative shareholder’s equity (common with high debt and accumulated deficits). The TTM Return on Assets (ROA) of 1.40% is low, indicating inefficient use of its massive asset base to generate profits.
  • Conclusion: Profitability is unstable and weak. While showing year-over-year improvement, the company operates on razor-thin margins, and its return metrics are distorted by its capital structure.

4. Valuation Analysis (US Dollar $)

Current valuation metrics suggest the stock is significantly overvalued based on traditional fundamentals.

  • Price-to-Earnings (P/E): The Forward P/E is 79.59 and the TTM P/E is 72.64. These are extremely high multiples, indicating investors are paying a large premium for current earnings. This is typical for a company in a turnaround phase where future growth is priced in, but it represents high risk.
  • Price-to-Book (P/B): The P/B ratio is 27.52. This is an extraordinarily high level, far above industry norms. This ratio is inflated due to the low book value per share resulting from high debt and accumulated losses on the balance sheet.
  • Price-to-Sales (P/S): The P/S ratio is 1.90. This is a more reasonable metric compared to PE and PB. It reflects the market valuing the company at approximately 1.9 times its annual revenue, which can be justified for a company with Boeing’s market position and revenue scale, assuming a successful recovery.
  • Recent Price Context: The stock price has been volatile, trading between $189.21 and $244.07 over the last 60 days, with a recent close at $221.63.
  • Valuation Conclusion & Price Ranges:
    • The stock is overvalued based on earnings (P/E) and book value (P/B) metrics. The valuation is primarily supported by future recovery expectations rather than current fundamentals.
    • A reasonable P/E-based target range is challenging due to negative/volatile earnings. If we assume a normalized, long-term P/E of 20-25 for a stable aerospace giant and apply it to the 2025 annual EPS of $2.49, we get a range of $49.80 to $62.25. This highlights the extreme premium embedded in the current price.
    • A more pragmatic P/S-based target range, assuming a P/S between 1.5 and 2.0 on TTM Sales (~$89.46B), gives a market cap range of ~$134B to ~$179B. With ~0.613B shares outstanding (implied from Market Cap/Price), this translates to a share price range of approximately $219 to $292.
    • Fundamental Target Price: Synthesizing the weak financials, volatile profitability, and premium valuation, a fundamental target price must be conservative. Based on the P/S framework and adjusting for high risk, a 12-month fundamental target price range of $200 - $260 is reasonable. The current price of $221.63 sits in the lower half of this range.

5. Investment Recommendation

Recommendation: Hold

Rationale: The analysis reveals a company with a weak balance sheet, unstable profitability, and a valuation that prices in a significant and successful multi-year recovery. The investment case is binary: success leads to substantial upside as earnings normalize and debt is reduced, while failure or delays pose severe downside risk given the high financial leverage. At the current price, the risk/reward profile is balanced. There is not a sufficient margin of safety to recommend a “Buy,” but the company’s market position and ongoing recovery efforts prevent a “Sell” recommendation. This stock is suitable only for investors with a high risk tolerance and a long-term investment horizon who are betting on a successful operational turnaround. Investors should monitor quarterly cash flow, debt reduction progress, and delivery rates closely. ✅ Analysis Complete