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1. Company Snapshot

1.a. Company Description

Spirit AeroSystems Holdings, Inc.designs, engineers, manufactures, and markets commercial aerostructures worldwide.It operates through three segments: Commercial, Defense & Space, and Aftermarket.


The Commercial segment offers forward, mid, and rear fuselage sections and systems, struts/pylons, nacelles, and related engine structural components; and wings and wing components, including flight control surfaces, as well as other structural parts.This segment primarily serves the aircraft original equipment manufacturers (OEMs) or engine OEMs of large commercial aircraft and/or business/regional jet programs.The Defense & Space segment provides fuselage, strut, nacelle, and wing aerostructures primarily for U.S. Government defense programs, including Boeing P-8, C40, and KC-46 Tanker.


This segment also engages in the fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training on fixed wing aircraft aerostructures, missiles, and hypersonics works, such as solid rocket motor throats, nozzles, re-entry vehicle thermal protections systems, forward cockpit and cabin, and fuselage work on rotorcraft aerostructures.The Aftermarket segment offers spare parts and MRO services, repairs for flight control surfaces and nacelles, radome repairs, rotable assets, engineering services, advanced composite repairs, and other repair and overhaul services.Spirit AeroSystems Holdings, Inc.


has a strategic partnership with Sierra Space to enhance access to commercial space economy of the future.The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc.Spirit AeroSystems Holdings, Inc.


was founded in 1927 and is headquartered in Wichita, Kansas.

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1.b. Last Insights on SPR

Spirit AeroSystems' recent performance has been positively driven by increased institutional investment, with Balyasny Asset Management L.P. lifting its position by 25.7% and acquiring an additional 1,328,419 shares. Moreover, Boeing's completion of its $4.7 billion acquisition of Spirit AeroSystems has strengthened commercial production and supply chain stability. The company's major operations now align under Commercial Airplanes, while defense programs operate independently. Additionally, Spirit AeroSystems' integration with Boeing is expected to enhance aviation safety and airplane quality.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Paul Tudor Jones Makes Significant Moves with iShares Core S&P 500 ETF

Feb -17

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US FTC finalizes consent order in Boeing acquisition of Spirit AeroSystems

Feb -17

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Boeing reaches labor deal with former Spirit AeroSystems white-collar workers

Jan -31

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Boeing secures tentative labor deal with former Spirit AeroSystems workers

Jan -16

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Boeing, union pause contract talks for former Spirit AeroSystems engineers

Dec -18

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Analyzing Optex Systems (NASDAQ:OPXS) and Spirit Aerosystems (NYSE:SPR)

Dec -17

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Caxton Associates LLP Cuts Holdings in Spirit Aerosystems Holdings, Inc. $SPR

Dec -14

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Balyasny Asset Management L.P. Buys 1,328,419 Shares of Spirit Aerosystems Holdings, Inc. $SPR

Dec -13

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Commercial

Expected Growth: 10%

Spirit AeroSystems Holdings, Inc.'s commercial segment growth is driven by increasing demand for aircraft, rising production rates, and growing aftermarket services. Additionally, the company's diversification into new markets, such as urban air mobility and defense, and its focus on cost reduction and operational efficiency also contribute to its growth.

Defense & Space

Expected Growth: 12%

Spirit AeroSystems' Defense & Space segment growth is driven by increasing demand for military aircraft and satellite components, backed by government contracts and investments in defense modernization. Additionally, the company's diversified portfolio of defense programs, such as the F-35 and B-21, and its partnerships with major defense contractors contribute to its 12% growth.

Aftermarket

Expected Growth: 9%

Spirit AeroSystems Holdings, Inc.'s aftermarket growth is driven by increasing demand for aircraft maintenance, repair, and overhaul (MRO) services, fueled by a growing global commercial aircraft fleet and rising air travel demand. Additionally, the company's strategic partnerships, expanded product offerings, and investments in digital technologies are contributing to its 9% growth.

7. Detailed Products

Commercial Aircraft

Design and manufacture of aircraft components, including fuselages, wings, and engine nacelles

Defense and Space

Design and manufacture of defense and space-related components, including aircraft components and satellite components

Aftermarket Services

Providing maintenance, repair, and overhaul (MRO) services for commercial and defense aircraft

Fabrication

Design and manufacture of complex composite and metallic structures

8. Spirit AeroSystems Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Spirit AeroSystems Holdings, Inc. is medium due to the presence of alternative materials and technologies that can replace traditional aerospace products.

Bargaining Power Of Customers

The bargaining power of customers for Spirit AeroSystems Holdings, Inc. is high due to the concentration of major aerospace companies and government agencies that have significant purchasing power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Spirit AeroSystems Holdings, Inc. is low due to the company's large scale and diversified supply chain, which reduces dependence on individual suppliers.

Threat Of New Entrants

The threat of new entrants for Spirit AeroSystems Holdings, Inc. is low due to the high barriers to entry in the aerospace industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Spirit AeroSystems Holdings, Inc. is high due to the competitive nature of the aerospace industry, with multiple players competing for market share and contracts.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 114.29%
Debt Cost 7.47%
Equity Weight -14.29%
Equity Cost 12.89%
WACC 6.70%
Leverage -800.00%

11. Quality Control: Spirit AeroSystems Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Spirit AeroSystems

A-Score: 5.0/10

Value: 9.6

Growth: 1.1

Quality: 5.2

Yield: 0.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

Stock-Card
AeroVironment

A-Score: 5.0/10

Value: 6.9

Growth: 6.1

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

Stock-Card
BWXT

A-Score: 4.9/10

Value: 0.9

Growth: 6.3

Quality: 5.4

Yield: 2.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Kratos Defense

A-Score: 4.5/10

Value: 2.4

Growth: 5.2

Quality: 5.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

Stock-Card
AAR

A-Score: 4.2/10

Value: 4.8

Growth: 4.8

Quality: 3.1

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

Stock-Card
Leonardo DRS

A-Score: 4.1/10

Value: 2.3

Growth: 3.7

Quality: 6.2

Yield: 1.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.5$

Current Price

39.5$

Potential

-0.00%

Expected Cash-Flows