Should You Consider The Boeing Company (NYSE:BA)?

In this article:

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of The Boeing Company (NYSE:BA), it is a financially-healthy , dividend-paying company with a an impressive history of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Boeing here.

Solid track record established dividend payer

In the previous year, BA has ramped up its bottom line by 49%, with its latest earnings level surpassing its average level over the last five years. Not only did BA outperformed its past performance, its growth also exceeded the Aerospace & Defense industry expansion, which generated a 17% earnings growth. This is what investors like to see! BA’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. BA appears to have made good use of debt, producing operating cash levels of 1.29x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:BA Income Statement Export November 14th 18
NYSE:BA Income Statement Export November 14th 18

Income investors would also be happy to know that BA is a great dividend company, with a current yield standing at 1.9%. BA has also been regularly increasing its dividend payments to shareholders over the past decade.

NYSE:BA Historical Dividend Yield November 14th 18
NYSE:BA Historical Dividend Yield November 14th 18

Next Steps:

For Boeing, there are three pertinent aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for BA’s future growth? Take a look at our free research report of analyst consensus for BA’s outlook.

  2. Valuation: What is BA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BA is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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