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BAE Systems (BAESY)
OTHER OTC:BAESY

BAE Systems plc ADR (BAESY) AI Stock Analysis

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BAE Systems plc ADR

(OTC:BAESY)

76Outperform
BAE Systems plc ADR's strong financial performance, characterized by impressive revenue growth and sound operational margins, is a major positive factor. The technical indicators support this strength, showing positive momentum and trend. However, high valuation metrics, evidenced by the elevated P/E ratio, slightly offset these strengths. Overall, the stock is well-positioned for growth, but its valuation warrants careful consideration.

BAE Systems plc ADR (BAESY) vs. S&P 500 (SPY)

BAE Systems plc ADR Business Overview & Revenue Model

Company DescriptionBAE Systems plc ADR (BAESY) is a multinational defense, security, and aerospace company headquartered in the United Kingdom. It operates in several key sectors, including air, maritime, land, and cyber defense, providing advanced technology-led solutions across these domains. The company's core products and services encompass military aircraft, naval ships, submarines, electronic systems, cyber intelligence, and support services.
How the Company Makes MoneyBAE Systems makes money primarily through government defense contracts, selling its products and services to military and security organizations worldwide. A significant portion of its revenue comes from long-term contracts with the United States, United Kingdom, and other allied governments for the supply and maintenance of defense systems and equipment. Key revenue streams include the sale of military aircraft, naval vessels, and advanced electronic systems, as well as cyber and intelligence solutions. BAE Systems also generates earnings from providing lifecycle support and maintenance services for its products. The company often collaborates with other defense contractors and engages in joint ventures to enhance its offerings and expand its market reach.

BAE Systems plc ADR Financial Statement Overview

Summary
BAE Systems demonstrates strong financial health with significant revenue growth and robust profit margins. The balance sheet is sound with a balanced leverage profile and solid return on equity. Cash flow remains strong, supporting operations and growth.
Income Statement
87
Very Positive
BAE Systems has demonstrated strong revenue growth with a 14.05% increase from 2023 to 2024. The gross profit margin stands at an impressive 65.45%, indicating efficient cost management. The net profit margin is healthy at 7.44%, and both EBIT and EBITDA margins are robust at 10.20% and 15.10% respectively. These metrics suggest strong profitability and operational efficiency.
Balance Sheet
75
Positive
The company's balance sheet shows a reasonable debt-to-equity ratio of 0.87, indicating a balanced leverage profile. The return on equity is solid at 16.84%, showcasing effective capital utilization. The equity ratio is 30.45%, suggesting a stable capital structure with a fair proportion of assets financed by equity.
Cash Flow
82
Very Positive
Free cash flow has slightly decreased by 1.46% from 2023 to 2024, but remains strong, supporting operational and strategic initiatives. The operating cash flow to net income ratio is 2.01, highlighting strong cash generation relative to earnings. The free cash flow to net income ratio is 1.41, reflecting healthy cash conversion from profits.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
26.31B23.08B21.26B19.52B19.28B
Gross Profit
17.23B15.10B14.16B12.56B12.50B
EBIT
2.69B2.57B2.38B2.39B1.93B
EBITDA
3.97B3.45B3.06B3.13B2.58B
Net Income Common Stockholders
1.96B1.86B1.59B1.76B1.30B
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.38B4.11B3.36B3.11B2.96B
Total Assets
38.14B32.06B31.46B27.14B27.53B
Total Debt
10.15B6.48B6.86B6.36B6.68B
Net Debt
6.78B2.47B3.75B3.44B3.91B
Total Liabilities
26.36B21.34B20.06B19.47B22.61B
Stockholders Equity
11.62B10.56B11.21B7.44B4.64B
Cash FlowFree Cash Flow
2.76B2.80B2.15B1.99B689.00M
Operating Cash Flow
3.92B3.76B2.84B2.45B1.17B
Investing Cash Flow
-5.27B-541.00M-422.00M66.00M-2.04B
Financing Cash Flow
695.00M-2.19B-2.33B-2.26B973.00M

BAE Systems plc ADR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price89.57
Price Trends
50DMA
81.28
Positive
100DMA
70.30
Positive
200DMA
68.28
Positive
Market Momentum
MACD
3.33
Negative
RSI
66.75
Neutral
STOCH
79.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAESY, the sentiment is Positive. The current price of 89.57 is above the 20-day moving average (MA) of 86.56, above the 50-day MA of 81.28, and above the 200-day MA of 68.28, indicating a bullish trend. The MACD of 3.33 indicates Negative momentum. The RSI at 66.75 is Neutral, neither overbought nor oversold. The STOCH value of 79.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAESY.

BAE Systems plc ADR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GDGD
80
Outperform
$72.99B18.8718.23%2.09%14.11%17.65%
LMLMT
79
Outperform
$111.93B20.6482.55%2.71%3.12%-15.29%
HIHII
77
Outperform
$9.04B16.5012.56%2.30%0.71%-18.39%
76
Outperform
$63.53B26.0917.85%1.63%17.21%9.04%
NONOC
73
Outperform
$69.56B19.0225.41%1.71%0.61%77.28%
LHLHX
72
Outperform
$40.90B25.938.49%2.12%5.39%36.86%
63
Neutral
$4.23B11.545.34%209.77%4.14%-9.49%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BAESY
BAE Systems plc ADR
92.67
27.59
42.39%
GD
General Dynamics
272.12
-9.37
-3.33%
LHX
L3Harris Technologies
220.02
12.93
6.24%
HII
Huntington Ingalls
230.34
-8.95
-3.74%
LMT
Lockheed Martin
477.75
26.39
5.85%
NOC
Northrop Grumman
486.50
19.53
4.18%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.