1.09%
5.55%
-4.77%
-5.73%
1.90%
109.37%
90.20%
AI Spotlight on BA
Company Description
BAE Systems plc provides defense, aerospace, and security solutions worldwide.The company operates through five segments: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Air, and Maritime.The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance systems, space electronics, and electric drive propulsion systems.
The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies.It also offers data intelligence solutions to defend against national-scale threats, protect their networks, and data against attacks; security and intelligence solutions to the United Kingdom government and allied international governments; anti-fraud and regulatory compliance solutions; and enterprise-level data and digital services.The Platforms & Services (US) segment manufactures combat vehicles, weapons, and munitions, as well as provides ship repair services and the management of government-owned munitions facilities.
The Air segment develops, manufactures, upgrades, and supports combat and jet trainer aircraft.The Maritime segment designs, manufactures, and supports surface ships, submarines, torpedoes, radars, and command and combat systems; and supplies naval gun systems.It also supplies naval weapon systems, missile launchers, and precision munitions.
The company was founded in 1970 and is based in Farnborough, the United Kingdom.
Market Data
| Last Price | 1208.5 |
| Change Percentage | 1.09% |
| Open | 1194 |
| Previous Close | 1195.5 |
| Market Cap ( Millions) | 36256 |
| Volume | 6372228 |
| Year High | 1417 |
| Year Low | 1127 |
| M A 50 | 1212.25 |
| M A 200 | 1292.21 |
Financial Ratios
| FCF Yield | 5.41% |
| Dividend Yield | 2.56% |
| ROE | 16.87% |
| Debt / Equity | 94.02% |
| Net Debt / EBIDTA | 231.63% |
| Price To Book | 3.28 |
| Price Earnings Ratio | 20.09 |
| Price To FCF | 18.47 |
| Price To sales | 1.48 |
| EV / EBITDA | 13.15 |
News
- Jan -28 - FTSE 100 LIVE: London markets higher as Reeves meets business leaders
- Jan -28 - FTSE 100 and US stocks higher as DeepSeek concern continues
- Jan -24 - Leidos Secures a $120M Deal to Provide Cybersecurity Support
- Jan -24 - General Dynamics' Unit Secures a Deal to Aid USS Ohio Class Submarines
- Jan -23 - Lockheed Secures a Contract to Support Foreign Military Sales
- Jan -10 - General Dynamics Wins a $188M Deal to Aid Virginia Class Submarines
- Jan -03 - Chipmakers are rushing to get Chips Act money before Biden's out. Here's who's finalized so far
- Dec -26 - Huntington Ingalls Clinches Deal to Support Lionfish SUUV Production
- Dec -24 - Huntington Ingalls Secures $54M Deal to Support Aircraft Carrier
- Dec -23 - General Dynamics Secures $235M Contract to Aid Submarine Program
- Dec -17 - BAE Systems Secures $656M Deal for M2A4 and M7A4 Combat Vehicles
- Dec -17 - Archer Aviation and Anduril Announce Partnership for Hybrid Aircraft
- Dec -06 - BAE Systems Secures a Contract for the Sustainment of the F-16 Jet
- Dec -04 - BAE Systems Wins $112M Contract to Support Naval Communication Systems
- Dec -03 - Boeing Wins $129M Deal to Support F-15 Japan Super Interceptor Program
- Dec -03 - RTX Secures $95M Contract to Deliver Navigation Systems
- Dec -02 - LMT Unit Secures $579M Contract to Support Japan's ASEV construction
- Dec -02 - Is There An Opportunity With BAE Systems plc's (LON:BA.) 23% Undervaluation?
- Dec -02 - BAE Systems to recruit more than 2,400 apprentices and graduates in 2025
- Nov -29 - BAE Systems falls as BofA sees risk of Musk-led defense cuts
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Commercial Airplanes
Expected Growth : 7 %
What the company do ?
BAE Systems plc's Commercial Airplanes segment provides advanced avionics and mission systems for commercial aircraft, enhancing safety and efficiency.
Why we expect these perspectives ?
BAE Systems' commercial airplanes segment growth is driven by increasing demand for fuel-efficient aircraft, rising air travel in emerging markets, and growing need for aircraft replacement and modernization. Additionally, the company's focus on innovative technologies, such as electric and autonomous systems, is expected to contribute to its growth.
Segment n°2 -> Defense, Space and Security
Expected Growth : 6 %
What the company do ?
BAE Systems' Defense, Space and Security segment provides electronic systems, intelligence and security solutions, and IT services for government and commercial customers.
Why we expect these perspectives ?
BAE Systems' Defense, Space and Security segment growth is driven by increasing global defense spending, modernization of military capabilities, and rising demand for cybersecurity solutions. The segment also benefits from its diversified portfolio, including electronic systems, intelligence and security, and platform and services solutions, which provide a stable revenue stream.
Segment n°3 -> Global Services
Expected Growth : 9 %
What the company do ?
Global Services from BAE Systems plc provides a range of support services, including cyber, intelligence, and logistics, to government and commercial customers worldwide.
Why we expect these perspectives ?
BAE Systems' Global Services segment growth is driven by increasing demand for cyber security, digital transformation, and IT services. The company's expertise in cloud, artificial intelligence, and data analytics is in high demand. Additionally, the growing need for electronic systems and support services for military and government customers contributes to the segment's growth.
Segment n°4 -> Unallocated Items, Eliminations and Other
Expected Growth : 5 %
What the company do ?
Unallocated Items, Eliminations and Other in BAE Systems plc refers to the residual category comprising costs not attributed to specific business segments, inter-segment eliminations, and other miscellaneous items.
Why we expect these perspectives ?
BAE Systems plc's 5% growth is driven by Unallocated Items, Eliminations and Other, primarily due to increased investments in digital transformation, cost savings initiatives, and favorable foreign exchange rates. Additionally, the company's diversified portfolio and strategic acquisitions have contributed to its growth, while eliminations of non-core businesses have improved operational efficiency.
Bae Systems Plc Products
| Product Range | What is it ? |
|---|---|
| Electronic Warfare | BAE Systems' Electronic Warfare (EW) solutions provide advanced capabilities to detect, identify, and counter threats across the electromagnetic spectrum. |
| Cyber Security | BAE Systems' Cyber Security solutions provide advanced threat detection, incident response, and penetration testing to protect against cyber threats. |
| Autonomous Systems | BAE Systems' Autonomous Systems solutions provide advanced autonomous capabilities for land, sea, and air platforms. |
| Combat Vehicles | BAE Systems' Combat Vehicles solutions provide advanced armored vehicles for military forces around the world. |
| Naval Ships | BAE Systems' Naval Ships solutions provide advanced warships and submarines for naval forces around the world. |
| Intelligence, Surveillance, and Reconnaissance (ISR) | BAE Systems' ISR solutions provide advanced sensors and analytics for military and civilian customers. |
| Training and Simulation | BAE Systems' Training and Simulation solutions provide advanced training systems for military and civilian customers. |
| Head-Mounted Displays | BAE Systems' Head-Mounted Displays solutions provide advanced helmet-mounted displays for military pilots. |
| Communication Systems | BAE Systems' Communication Systems solutions provide advanced communication networks for military and civilian customers. |
BAE Systems plc's Porter Forces
Threat Of Substitutes
BAE Systems plc has a moderate threat of substitutes due to the presence of alternative defense contractors and the ability of governments to develop their own defense capabilities in-house.
Bargaining Power Of Customers
The bargaining power of customers is low due to the specialized nature of defense products and the limited number of major customers, primarily governments.
Bargaining Power Of Suppliers
The bargaining power of suppliers is moderate due to the presence of a few large suppliers of critical components and the potential for supply chain disruptions.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise.
Intensity Of Rivalry
The intensity of rivalry is high due to the competitive nature of the defense industry, with several major players competing for a limited number of contracts.
Strength
Weaknesses
Opportunities
Threats
Capital Structure
| Value | |
|---|---|
| Debt Weight | 33.24% |
| Debt Cost | 5.76% |
| Equity Weight | 66.76% |
| Equity Cost | 5.76% |
| WACC | 5.76% |
| Leverage | 49.80% |
BAE Systems plc : Quality Control
BAE Systems plc passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| RHM.DE | Rheinmetall AG provides technologies to the mobility and security sectors worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and … |
| AIR.PA | Airbus SE engages in the designing, manufacturing, and delivering aerospace products, services, and solutions worldwide. It operates through three segments: Airbus, Airbus Helicopters, and Airbus Defence and Space. The Airbus … |
| RR.L | Rolls-Royce Holdings plc operates as an industrial technology company in the United Kingdom and internationally. The company operates in four segments: Civil Aerospace, Power Systems, Defence, and New Markets. The … |
| SAF.PA | Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. … |
| HO.PA | Thales S.A. provides various solutions for civilian and military customers in the aeronautics, space, defense, security, ground transportation, and digital security markets worldwide. It operates through Aerospace, Transport, Defence & … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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BAE Systems
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Thales
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Safran
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4
Rolls-Royce
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5
Rheinmetall
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6
