BAE Systems plc ADR (BAESY) AI Stock Analysis

• Market Cap: $74.97B
• Dividend Yield: 2.04%
• Average Volume (3M): 9.63K
• Price to Earnings (P/E): 31.7
• Beta (1Y): 0.48
• Revenue Growth: 17.21%
• EPS Growth: 9.04%
• Country: US
• Employees: 107,400
• Sector: Industrials
• Sector Strength: 87
• Industry: Aerospace & Defense
• EPS (TTM): 1.75
• Shares Outstanding: 754,147,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 9,631
• PEG Ratio: -2.34
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $115.00 ▲(28.39%Upside)

BAE Systems' strong financial performance is the most significant factor driving the stock's score, reflecting its robust revenue growth and operational efficiency. However, technical indicators suggest caution due to potential overbought conditions, and high valuation metrics indicate limited upside potential.

BAE Systems plc ADR Business Overview & Revenue Model

Company Description

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Air, and Maritime. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance systems, space electronics, and electric drive propulsion systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies. It also offers data intelligence solutions to defend against national-scale threats, protect their networks, and data against attacks; security and intelligence solutions to the United Kingdom government and allied international governments; anti-fraud and regulatory compliance solutions; and enterprise-level data and digital services. The Platforms & Services (US) segment manufactures combat vehicles, weapons, and munitions, as well as provides ship repair services and the management of government-owned munitions facilities. The Air segment develops, manufactures, upgrades, and supports combat and jet trainer aircraft. The Maritime segment designs, manufactures, and supports surface ships, submarines, torpedoes, radars, and command and combat systems; and supplies naval gun systems. It also supplies naval weapon systems, missile launchers, and precision munitions. The company was founded in 1970 and is based in Farnborough, the United Kingdom.

How the Company Makes Money

BAE Systems generates revenue primarily through contracts with governments and commercial clients for its defense, aerospace, and security products and services. The company's key revenue streams include the sale of military hardware such as aircraft, ships, and combat vehicles, as well as the provision of support and maintenance services for these products. Additionally, BAE Systems earns income through its cybersecurity and intelligence services, offering solutions to both government and private sector clients. Significant partnerships and joint ventures, particularly with the United States and United Kingdom governments, contribute to its earnings by securing long-term defense contracts. The company's diverse portfolio and global presence help mitigate risks and ensure a stable revenue flow.

BAE Systems plc ADR Financial Statement Overview

Summary

BAE Systems shows impressive financial health with robust revenue growth, strong profit margins, efficient cost management, and solid cash flow generation. The balance sheet is stable with reasonable leverage and effective capital utilization.

Income Statement

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.31B	23.08B	21.26B	19.52B	19.28B
	Gross Profit
17.23B	15.10B	14.16B	12.56B	12.50B
	EBIT
2.69B	2.57B	2.38B	2.39B	1.93B
	EBITDA
3.97B	3.45B	3.06B	3.13B	2.58B
	Net Income Common Stockholders
1.96B	1.86B	1.59B	1.76B	1.30B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.38B	4.11B	3.36B	3.11B	2.96B
	Total Assets
38.14B	32.06B	31.46B	27.14B	27.53B
	Total Debt
10.15B	6.48B	6.86B	6.36B	6.68B
	Net Debt
6.78B	2.47B	3.75B	3.44B	3.91B
	Total Liabilities
26.36B	21.34B	20.06B	19.47B	22.61B
	Stockholders Equity
11.62B	10.56B	11.21B	7.44B	4.64B
Cash Flow		Free Cash Flow
2.76B	2.80B	2.15B	1.99B	689.00M
	Operating Cash Flow
3.92B	3.76B	2.84B	2.45B	1.17B
	Investing Cash Flow
-5.27B	-541.00M	-422.00M	66.00M	-2.04B
	Financing Cash Flow
695.00M	-2.19B	-2.33B	-2.26B	973.00M

BAE Systems plc ADR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 below the 20-day moving average (MA) of 101.68, below the 50-day MA of 93.93, and above the 200-day MA of 73.36, indicating a bullish trend. The MACD of 3.04 indicates Positive momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 28.15 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	79 Outperform	$74.03B	19.14	18.23%	2.14%	14.11%	17.65%
LMT	78 Outperform	$109.95B	21.01	82.55%	2.81%	3.12%	-15.29%
LHX	76 Outperform	$46.81B	30.46	8.49%	1.92%	5.39%	36.86%
NOC	74 Outperform	$71.55B	20.34	25.41%	1.86%	0.61%	77.28%
HII	71 Outperform	$8.87B	16.30	12.27%	2.36%	-1.04%	-21.80%
BAESY	67 Neutral	$74.97B	31.73	17.85%	2.04%	17.21%	9.04%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%