Boeing Co EBITDA dropped on 16.5% in 2016 and Revenue decreased slightly on 1.6%
25 Jan 2017 • About Boeing Co (
$BOE) • By InTwits
Boeing Co reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Boeing Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 7,199 in 2016, 7,309 in 2015, 7,134 in 2014, 13,458 in 2013, 15,119 in 2012
- The company has highly profitable business model: ROIC is at 38.5%
- It operates with high leverage: Net Debt/EBITDA is 0.1x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Boeing Co ($BOE) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 81,698 | 86,623 | 90,762 | 96,114 | 94,571 | -1.6% |
| Gross Profit | 13,033 | 13,355 | 14,010 | 14,026 | 13,781 | -1.7% |
| SG&A | 3,717 | 3,956 | 3,767 | 3,525 | 3,616 | 2.6% |
| EBITDA | 8,101 | 8,406 | 9,379 | 9,276 | 7,744 | -16.5% |
| Net Income | 3,900 | 4,585 | 5,446 | 5,176 | 4,895 | -5.4% |
Balance Sheet
|
|---|
| Cash | 10,341 | 9,088 | 11,733 | 11,302 | 8,801 | -22.1% |
| Short Term Debt | 1,436 | 1,563 | 929 | 1,234 | 384 | -68.9% |
| Long Term Debt | 8,973 | 8,072 | 8,141 | 8,730 | 9,568 | 9.6% |
Cash flow
|
|---|
| Capex | 1,703 | 2,098 | 2,236 | 2,450 | 2,613 | 6.7% |
Ratios
|
|---|
| Revenue growth | 18.9% | 6.0% | 4.8% | 5.9% | -1.6% | |
| EBITDA growth | 8.0% | 3.8% | 11.6% | -1.1% | -16.5% | |
| Gross Margin | 16.0% | 15.4% | 15.4% | 14.6% | 14.6% | -0.0% |
| EBITDA Margin | 9.9% | 9.7% | 10.3% | 9.7% | 8.2% | -1.5% |
| Net Income Margin | 4.8% | 5.3% | 6.0% | 5.4% | 5.2% | -0.2% |
| SG&A, % of revenue | 4.5% | 4.6% | 4.2% | 3.7% | 3.8% | 0.2% |
| CAPEX, % of revenue | 2.1% | 2.4% | 2.5% | 2.5% | 2.8% | 0.2% |
| ROIC | 31.8% | 25.4% | 29.5% | 38.9% | 38.5% | -0.5% |
| ROE | 83.1% | 44.2% | 46.3% | 69.0% | 136.9% | 67.9% |
| Net Debt/EBITDA | 0.0x | 0.1x | -0.3x | -0.1x | 0.1x | 0.3x |
Revenue and profitability
The company's Revenue decreased slightly on 1.6% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 12.0% to 13.9% in FY2016.
Gross Margin showed almost no change in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
Boeing Co's CAPEX/Revenue was 2.8% in 2016. CAPEX/Revenue showed almost no change from 2013 to 2016. Average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at high and attractive ROIC (38.48%) and ROE (136.88%). ROIC showed almost no change in 2016. ROE surged on 67.9 pp from 69.0% to 137% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 1.3x. Net Debt / EBITDA surged on 0.3x from -0.1x to 0.1x in 2016. Debt showed almost no change in 2016 while cash dropped on 22.1% in 2016.
Valuation
Boeing Co's trades at EV/EBITDA 0.3x and P/E 0.2x while industy averages are 15.6x and 19.1x. Boeing Co's EV/(EBITDA-CAPEX) is 0.4x with the industry average at 19.0x.
Appendix 1: Peers in Aerospace & Defense
Below we provide Boeing Co benchmarking against other companies in Aerospace & Defense industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cobham ($85GU) | | 2.3% | 3.5% | 11.9% | -6.2% |
| Bae Systems ($BA.) | -7.2% | -0.3% | -3.7% | 0.9% | |
| Rolls-Royce Hldgs ($RR.) | 9.3% | 20.4% | -6.2% | -0.1% | |
| Qinetiq Group ($QQ.) | | -9.6% | -41.1% | -2.4% | -1.1% |
| Chemring Group ($BC88) | | -36.2% | -14.7% | -6.4% | 26.5% |
| |
|---|
| Median (5 companies) | 1.1% | -0.3% | -6.2% | -0.1% | -1.1% |
|---|
| Boeing Co ($BOE) | | 6.0% | 4.8% | 5.9% | -1.6% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cobham ($85GU) | 32.9% | 31.8% | 30.3% | 32.0% | 19.4% |
| Chemring Group ($BC88) | 25.4% | 31.1% | 31.4% | 27.8% | 25.9% |
| Rolls-Royce Hldgs ($RR.) | 22.4% | 21.6% | 23.3% | 23.8% | |
| |
|---|
| Median (3 companies) | 25.4% | 31.1% | 30.3% | 27.8% | 22.6% |
|---|
| Boeing Co ($BOE) | 16.0% | 15.4% | 15.4% | 14.6% | 14.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Qinetiq Group ($QQ.) | 28.8% | -5.4% | 16.8% | 17.9% | 13.6% |
| Rolls-Royce Hldgs ($RR.) | 13.9% | 14.5% | 14.8% | 16.1% | |
| Cobham ($85GU) | 20.5% | 21.8% | 13.4% | 12.9% | -27.3% |
| Chemring Group ($BC88) | 11.1% | -0.4% | 16.1% | 11.4% | 14.6% |
| Bae Systems ($BA.) | 13.1% | 12.4% | 12.1% | 11.0% | |
| |
|---|
| Median (5 companies) | 13.9% | 12.4% | 14.8% | 12.9% | 13.6% |
|---|
| Boeing Co ($BOE) | 9.9% | 9.7% | 10.3% | 9.7% | 8.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cobham ($85GU) | 2.8% | 3.2% | 3.4% | 4.7% | 4.3% |
| Rolls-Royce Hldgs ($RR.) | 3.6% | 4.6% | 4.7% | 3.5% | |
| Qinetiq Group ($QQ.) | 1.5% | 2.0% | 3.1% | 3.2% | 3.8% |
| Chemring Group ($BC88) | 4.1% | 2.6% | 2.7% | 2.2% | 2.2% |
| Bae Systems ($BA.) | 2.2% | 1.4% | 1.7% | 2.1% | |
| |
|---|
| Median (5 companies) | 2.8% | 2.6% | 3.1% | 3.2% | 3.8% |
|---|
| Boeing Co ($BOE) | 2.1% | 2.4% | 2.5% | 2.5% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bae Systems ($BA.) | 26.3% | 12.8% | 26.0% | 27.9% | |
| Qinetiq Group ($QQ.) | 44.3% | -17.2% | 17.4% | 26.8% | 24.7% |
| Rolls-Royce Hldgs ($RR.) | 18.0% | 15.8% | 13.8% | 15.3% | |
| Chemring Group ($BC88) | 4.9% | -6.3% | 4.4% | 1.4% | 5.8% |
| Cobham ($85GU) | 13.9% | 9.0% | 2.6% | 0.5% | -36.7% |
| |
|---|
| Median (5 companies) | 18.0% | 9.0% | 13.8% | 15.3% | 5.8% |
|---|
| Boeing Co ($BOE) | 31.8% | 25.4% | 29.5% | 38.9% | 38.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cobham ($85GU) | 1.0x | 1.2x | 4.9x | 4.5x | |
| Chemring Group ($BC88) | 3.0x | | 2.1x | 3.6x | 1.3x |
| Bae Systems ($BA.) | -0.2x | 0.4x | 0.5x | 0.8x | |
| Rolls-Royce Hldgs ($RR.) | -0.7x | -0.8x | -0.3x | 0.1x | |
| Qinetiq Group ($QQ.) | 0.3x | | -1.3x | -1.3x | -2.6x |
| |
|---|
| Median (5 companies) | 0.3x | 0.4x | 0.5x | 0.8x | -0.7x |
|---|
| Boeing Co ($BOE) | 0.0x | 0.1x | -0.3x | -0.1x | 0.1x |
