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BAE Systems (GB:BA)
LSE:BA
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BAE Systems (BA) AI Stock Analysis

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GB:BA

BAE Systems

(LSE:BA)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
1,955.00p
â–¼(-2.83% Downside)
BAE Systems' strong financial performance is the most significant factor, showcasing consistent growth and a solid market position. Technical analysis indicates mixed signals with potential short-term weakness, while valuation suggests the stock is relatively expensive. The absence of earnings call data and corporate events does not impact the overall score.
Positive Factors
Negative Factors

BAE Systems (BA) vs. iShares MSCI United Kingdom ETF (EWC)

BAE Systems Business Overview & Revenue Model

Company DescriptionBAE Systems is a global defense, security, and aerospace company headquartered in London, UK. It operates in various sectors, including Air, Land, Sea, Cyber, and Security, providing a wide range of products and services such as military platforms, naval systems, cybersecurity solutions, and advanced electronics. BAE Systems serves government and commercial customers worldwide, helping to ensure national security and protect critical infrastructure.
How the Company Makes MoneyBAE Systems generates revenue primarily through the sale of defense and aerospace products, as well as through service contracts. Key revenue streams include contract awards from government clients for defense systems and services, sales of military vehicles and naval ships, and revenue from cybersecurity and intelligence services. The company often collaborates with governments and other defense contractors on large projects, which enhances its ability to secure substantial contracts. Additionally, long-term maintenance and support agreements for its products provide ongoing revenue, contributing to its financial stability.

BAE Systems Financial Statement Overview

Summary
BAE Systems demonstrates strong financial performance with consistent revenue and profit growth. The company has a robust market position and operational efficiency, despite rising leverage. The balance sheet is solid with a strong equity base, and cash flow generation supports growth initiatives.
Income Statement
85
Very Positive
BAE Systems shows a strong upward trajectory with consistent revenue growth from $18.3 billion in 2019 to $26.3 billion in 2024, indicating a robust market position. The gross profit margin improved significantly, reaching approximately 65.5% in 2024, demonstrating efficient cost management. Net profit margin has remained stable at around 7.4%, reflecting steady profitability. EBIT and EBITDA margins have also shown positive trends, highlighting operational efficiency. This consistent performance indicates strong industry positioning and effective management.
Balance Sheet
78
Positive
The balance sheet showcases a stable financial position with stockholders' equity growing from $5.4 billion in 2019 to $11.6 billion in 2024. The debt-to-equity ratio has increased, reflecting higher leverage, but remains manageable. The equity ratio improved over the years, indicating a solid capital structure. While the return on equity has been strong, it slightly dipped in 2024 due to elevated equity levels. Overall, the financial health is solid, though the rising debt levels should be monitored.
Cash Flow
82
Very Positive
BAE Systems displays strong cash flow generation with a growing operating cash flow, reaching $3.925 billion in 2024. Free cash flow has also shown growth, indicating effective capital expenditure management. The operating cash flow to net income ratio is robust, underscoring the company's ability to convert profits into cash. Although free cash flow slightly decreased in 2024 compared to 2023, the overall cash flow position is healthy, supporting further growth and investment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.41B26.31B23.08B21.26B19.52B19.28B
Gross Profit2.29B17.23B15.10B5.91B5.19B5.14B
EBITDA3.75B3.97B3.45B2.81B2.91B2.41B
Net Income1.98B1.96B1.86B1.59B1.76B1.30B
Balance Sheet
Total Assets36.00B38.14B32.06B31.46B27.14B27.94B
Cash, Cash Equivalents and Short-Term Investments2.15B3.38B4.11B3.36B3.11B2.96B
Total Debt9.43B10.15B6.48B6.86B6.36B6.68B
Total Liabilities24.99B26.36B21.34B19.06B18.66B22.34B
Stockholders Equity10.84B11.62B10.56B11.21B7.44B4.64B
Cash Flow
Free Cash Flow2.04B2.76B2.80B2.00B1.82B508.00M
Operating Cash Flow3.02B3.92B3.76B2.70B2.28B985.00M
Investing Cash Flow-1.20B-5.27B-541.00M-548.00M-14.00M-2.08B
Financing Cash Flow-2.46B695.00M-2.19B-2.06B-1.99B1.20B

BAE Systems Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2012.00
Price Trends
50DMA
1837.29
Positive
100DMA
1849.35
Positive
200DMA
1621.76
Positive
Market Momentum
MACD
53.08
Negative
RSI
68.95
Neutral
STOCH
65.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BA, the sentiment is Positive. The current price of 2012 is above the 20-day moving average (MA) of 1900.72, above the 50-day MA of 1837.29, and above the 200-day MA of 1621.76, indicating a bullish trend. The MACD of 53.08 indicates Negative momentum. The RSI at 68.95 is Neutral, neither overbought nor oversold. The STOCH value of 65.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BA.

BAE Systems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
2.33B48.725.25%1.51%0.84%-62.73%
73
Outperform
99.62B17.26-276.43%0.89%9.62%146.74%
71
Outperform
1.51B38.8811.09%1.40%8.00%674.47%
70
Outperform
$58.80B30.5817.59%1.64%11.60%8.03%
61
Neutral
6.38B25.9440.88%0.51%10.08%49.21%
56
Neutral
2.86B-15.64-29.64%1.66%1.02%-240.44%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BA
BAE Systems
2,012.00
800.60
66.09%
RYCEF
Rolls-Royce Holdings
15.87
8.91
128.02%
GB:BAB
Babcock International
1,273.00
804.36
171.64%
GB:CHG
Chemring
563.00
202.29
56.08%
GB:SRP
Serco Group plc
232.40
58.78
33.86%
GB:QQ
QinetiQ
534.00
93.02
21.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 06, 2025