ScoreWhy is BAE Systems Plc ?
1
High Management Efficiency with a high ROCE of 17.47%
2
Poor long term growth as Operating profit has grown by an annual rate 8.41% of over the last 5 years
3
Flat results in Jun 25
- RAW MATERIAL COST(Y) Grown by 14.87% (YoY)
- CASH AND EQV(HY) Lowest at GBP 2,444 MM
- INVENTORY TURNOVER RATIO(HY) Lowest at 18.42%
4
With ROE of 20.03%, it has a expensive valuation with a 5.65 Price to Book Value
- Over the past year, while the stock has generated a return of 33.90%, its profits have risen by 15% ; the PEG ratio of the company is 1.8
5
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
6
Consistent Returns over the last 3 years
- Along with generating 33.90% returns in the last 1 year, the stock has outperformed FTSE 100 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to BAE Systems Plc should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is BAE Systems Plc for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
BAE Systems Plc
33.9%
3.74
32.96%
FTSE 100
15.94%
1.23
12.99%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.82%
EBIT Growth (5y)
8.41%
EBIT to Interest (avg)
7.38
Debt to EBITDA (avg)
0.93
Net Debt to Equity (avg)
0.43
Sales to Capital Employed (avg)
1.43
Tax Ratio
13.73%
Dividend Payout Ratio
50.83%
Pledged Shares
0
Institutional Holding
0.10%
ROCE (avg)
17.47%
ROE (avg)
21.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
Price to Book Value
5.65
EV to EBIT
29.07
EV to EBITDA
19.23
EV to Capital Employed
4.10
EV to Sales
2.43
PEG Ratio
1.76
Dividend Yield
42.13%
ROCE (Latest)
14.10%
ROE (Latest)
20.03%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 5,972 MM
ROCE(HY)
Highest at 17.89%
DIVIDEND PER SHARE(HY)
Highest at GBP 3.77
PRE-TAX PROFIT(Q)
Highest at GBP 1,166 MM
-3What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 14.87% (YoY
CASH AND EQV(HY)
Lowest at GBP 2,444 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 18.42%
Here's what is working for BAE Systems Plc
Operating Cash Flow
Highest at GBP 5,972 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Pre-Tax Profit
Highest at GBP 1,166 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Dividend per share
Highest at GBP 3.77
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (GBP)
Here's what is not working for BAE Systems Plc
Cash and Eqv
Lowest at GBP 2,444 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 18.42%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 14.87% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at GBP 0.26 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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