BAE Systems Plc (BA.) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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BAE Systems Plc

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Senior Plc

Velocity Composites Plc

Why is BAE Systems Plc ?

Weak Long Term Fundamental Strength with a 9.17% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 9.17% of over the last 5 years

Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at GBP 8,499 MM
ROCE(HY) Highest at 18.21%
PRE-TAX PROFIT(Q) Highest at GBP 1,260 MM

With ROE of 17.96%, it has a very expensive valuation with a 4.88 Price to Book Value

Over the past year, while the stock has generated a return of 18.41%, its profits have risen by 3.3% ; the PEG ratio of the company is 7

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How 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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

BAE Systems Plc

18.41%

5.85

32.69%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.01%

EBIT Growth (5y)

9.17%

EBIT to Interest (avg)

6.52

Debt to EBITDA (avg)

1.26

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

1.38

Tax Ratio

19.23%

Dividend Payout Ratio

52.76%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

14.66%

ROE (avg)

21.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.88

EV to EBIT

24.61

EV to EBITDA

16.75

EV to Capital Employed

3.92

EV to Sales

2.17

PEG Ratio

7.00

Dividend Yield

1.90%

ROCE (Latest)

15.91%

ROE (Latest)

17.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 8,499 MM

ROCE(HY)

Highest at 18.21%

PRE-TAX PROFIT(Q)

Highest at GBP 1,260 MM

RAW MATERIAL COST(Y)

Fallen by -6.68% (YoY

CASH AND EQV(HY)

Highest at GBP 4,355 MM

DEBT-EQUITY RATIO (HY)

Lowest at 38.77 %

DIVIDEND PER SHARE(HY)

Highest at GBP 3.81

NET PROFIT(Q)

Highest at GBP 1,097.11 MM

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INVENTORY TURNOVER RATIO(HY)

Lowest at 18.38 times

DIVIDEND PER SHARE(HY)

Lowest at GBP 3.81

Here's what is working for BAE Systems Plc

Operating Cash Flow

Highest at GBP 8,499 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Pre-Tax Profit

Highest at GBP 1,260 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 1,097.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Cash and Eqv

Highest at GBP 4,355 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 38.77 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at GBP 3.81

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by -6.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for BAE Systems Plc

Inventory Turnover Ratio

Lowest at 18.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at GBP 3.81

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)