Boeing (BA) AI Stock Analysis

• Market Cap: $160.37B
• Dividend Yield: N/A
• Average Volume (3M): 6.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 2.41%
• EPS Growth: -193.57%
• Country: US
• Employees: 172,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -1.24
• Shares Outstanding: 756,157,700
• 10 Day Avg. Volume: 7,720,737
• 30 Day Avg. Volume: 6,720,102
• PEG Ratio: -0.02
• Price to Book (P/B): -29.30
• Price to Sales (P/S): 1.72
• P/FCF Ratio: -7.95
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: -921.42
• Enterprise Value/Ebitda: -31.37
• 1Y Price Target: $259.71
• Price Target Upside: 20.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 45 Neutral
• Price Target: $209.00 ▼(-2.84% Downside)

Boeing's overall stock score is primarily impacted by its weak financial performance and valuation, reflecting significant financial challenges and ongoing losses. Technical analysis indicates bearish momentum, further weighing on the score. The earnings call provided some positive insights, particularly in backlog growth and defense contracts, but these are overshadowed by the broader financial instability.

Positive Factors

Backlog Growth

A growing backlog indicates strong demand and provides revenue visibility for future years, supporting long-term business stability.

Defense Contracts

Securing large defense contracts strengthens Boeing's position in the defense sector, ensuring steady revenue streams and market presence.

Production Rate Increase

Increasing production rates reflect operational efficiency improvements and capacity to meet rising demand, enhancing revenue potential.

Negative Factors

Certification Delays

Delays in certification can hinder production schedules and delivery timelines, affecting revenue and customer satisfaction.

Negative Operating Margins

Negative operating margins indicate profitability challenges, which can strain financial resources and impact long-term sustainability.

FAA Fines and Violations

Safety violations and resulting fines can damage reputation, lead to regulatory scrutiny, and increase operational costs.

Boeing Business Overview & Revenue Model

Company Description

Boeing (BA) is a leading aerospace company and manufacturer of commercial jetliners, defense, space, and security systems. Founded in 1916 and headquartered in Arlington, Virginia, Boeing operates in several sectors, including Commercial Airplanes, Defense, Space & Security, and Global Services. The company is known for its iconic products such as the 737, 747, 767, and 777 series of aircraft, as well as advanced defense systems and space exploration technologies.

How the Company Makes Money

Boeing generates revenue through multiple streams primarily categorized into its Commercial Airplanes, Defense, Space & Security, and Global Services sectors. The Commercial Airplanes segment is the largest revenue contributor, earning money from the sale of commercial aircraft to airlines and leasing companies. The Defense, Space & Security sector derives income from contracts with government agencies and defense organizations for military aircraft, missile systems, satellites, and related services. Global Services provides aftermarket support and services to both commercial and defense customers, contributing to ongoing revenue through maintenance, parts sales, and support services. Additionally, Boeing has established partnerships with various governments and private companies that facilitate contracts and collaborations in defense and space exploration, further enhancing its revenue potential. Factors such as global air travel demand, defense spending, and advancements in aerospace technology play significant roles in influencing Boeing's earnings.

Boeing Financial Statement Overview

Summary

Boeing faces substantial financial hurdles across all verticals. Despite some revenue growth and slight improvements in cash flow, the company struggles with high leverage, negative equity, and persistent losses. These factors present significant risks and highlight the need for strategic adjustments to restore financial health.

Income Statement

The income statement reveals significant challenges for Boeing, with consistent negative net incomes and EBIT margins over recent periods. The TTM data shows a gross profit margin of -0.32% and a net profit margin of -14.29%, indicating severe profitability issues. Revenue growth from 2024 to the TTM period is positive at 13.23%, but historical volatility and overall negative returns highlight financial instability.

Balance Sheet

Boeing's balance sheet is under pressure, with a negative stockholders' equity indicating financial distress. The debt-to-equity ratio cannot be calculated due to negative equity, and the equity ratio is also negative, underscoring risks associated with high leverage. The return on equity (ROE) remains negative, reflecting ongoing profitability challenges.

Cash Flow

The cash flow statement exhibits some positive trends but remains largely concerning. Operating cash flow has improved from a negative to less negative over time, and the free cash flow growth rate from 2024 to the TTM period is positive. However, the free cash flow to net income ratio is negative, pointing to ongoing cash generation challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.33B	66.52B	77.79B	66.61B	62.29B	58.16B
Gross Profit	-205.00M	-1.96B	7.71B	3.46B	6.48B	1.01B
EBITDA	-6.02B	-7.65B	2.31B	-510.00M	-207.00M	-10.07B
Net Income	-10.68B	-11.82B	-2.22B	-4.93B	-4.20B	-11.87B
Balance Sheet
Total Assets	155.12B	156.36B	137.01B	137.10B	138.55B	152.14B
Cash, Cash Equivalents and Short-Term Investments	22.97B	26.28B	15.96B	17.22B	16.24B	25.59B
Total Debt	53.32B	54.19B	52.60B	57.28B	58.37B	63.85B
Total Liabilities	158.42B	160.28B	154.24B	152.95B	153.40B	170.21B
Stockholders Equity	-3.29B	-3.91B	-17.23B	-15.88B	-15.00B	-18.32B
Cash Flow
Free Cash Flow	-8.12B	-14.40B	4.43B	2.29B	-4.40B	-19.71B
Operating Cash Flow	-6.18B	-12.08B	5.96B	3.51B	-3.42B	-18.41B
Investing Cash Flow	-15.89B	-11.97B	-2.44B	4.37B	9.32B	-18.37B
Financing Cash Flow	18.95B	25.21B	-5.49B	-1.27B	-5.60B	34.95B

Boeing Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 215.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BA, the sentiment is Negative. The current price of 215.1 is below the 20-day moving average (MA) of 224.04, below the 50-day MA of 226.95, and above the 200-day MA of 193.69, indicating a neutral trend. The MACD of -3.92 indicates Positive momentum. The RSI at 38.12 is Neutral, neither overbought nor oversold. The STOCH value of 24.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BA.

Boeing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GE	80 Outperform	318.45B	42.66	40.54%	0.43%	-32.80%	69.39%
GD	79 Outperform	87.05B	21.70	17.33%	1.80%	11.85%	16.12%
NOC	77 Outperform	83.94B	21.22	25.50%	1.49%	-0.65%	77.20%
RTX	76 Outperform	216.01B	35.27	9.85%	1.62%	15.44%	164.00%
LMT	71 Outperform	113.52B	27.40	78.82%	2.71%	1.09%	-35.50%
BA	45 Neutral	$160.37B	―	-162.23%	―	2.41%	-193.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Boeing Corporate Events

Boeing Enhances Financial Flexibility with New Credit Agreement

On August 25, 2025, Boeing entered into a 364-day credit agreement with Citibank and JPMorgan Chase, enhancing its financial flexibility. This agreement, signed on August 28, 2025, is significant for Boeing’s financial strategy, potentially impacting its market operations and stakeholder confidence.

Boeing Announces New CFO Appointment

On June 30, 2025, Boeing announced a transition in its Chief Financial Officer role, with Jesus (Jay) Malave elected as the new Executive Vice President and CFO, effective August 15, 2025. Malave, who previously served as CFO at Lockheed Martin, will succeed Brian J. West, who will become a Special Advisor to the CEO. This transition is part of Boeing’s ongoing efforts to strengthen its financial strategy and operations as it continues its recovery and implements changes focused on safety and quality. Malave’s extensive experience in aerospace and manufacturing is expected to contribute significantly to Boeing’s future growth and strategic goals.

Boeing Enters Non-Prosecution Agreement with DOJ

On May 29, 2025, Boeing entered into a Non-Prosecution Agreement with the U.S. Department of Justice, resolving issues related to its previous Deferred Prosecution Agreement from January 2021. As part of the agreement, Boeing will pay a total of $487.2 million in penalties, with $243.6 million already paid in 2021, and an additional $444.5 million in compensation to victims’ families of the Lion Air and Ethiopian Airlines accidents. The company will also invest $455 million in compliance and safety programs and retain an independent compliance consultant. This agreement prevents further criminal prosecution provided Boeing fulfills its obligations, impacting its operational focus on compliance and safety improvements.