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Boeing (BA) Stock Analysis
Boeing Dividend
The Boeing dividend had been paid continuously since 1937 until it was suspended on 3/23/20. The latest dividend of $2.055 was paid on 3/06/20.
The dividend is currently SUSPENDED.
Special Circumstances:
The grounding of the 737 MAX in 2019-20, the 737 MAX 9 in 2024, and several recent revelations of poor oversight and maintenance have hurt Boeing’s long term reputation. It will take YEARS to repair the damage done to the Boeing reputation AND balance sheet.
Boeing (BA) Intrinsic Value – Margin of Safety Analysis
(updated February 2025)
Normalized Diluted Earnings Per Share (TTM): -$1836
Free Cash Flow Per Share (TTM): -$22.26
Cash Flow From Operations (CFO) Per Share (TTM): -$18.67
Estimated Intrinsic Value: $163
Target Buy Price Based on Required Margin of Safety = $91
(Required Margin of Safety Based On Risk Stability Grade:
A = 0%, B = 20%, C = 40%, D = 60%, F = 80%)
Target SELL Price Based on Estimated Intrinsic Value = $163
(Allow Overvaluation Adjusted by Risk Stability Grade:
A = 40%, B = 25%, C = 15%, D = 5%, F = 0%)
Risk / Stability Grade: F
A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.
B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.
C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.
D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.
F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.
Financial Risk Grade: F
A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.
B grade indicates a very low probability for a dividend cut.
C grade indicates a low probability for a dividend cut and/or average safety risk.
D grade indicates there are issues that should be considered concerning future dividend payments.
F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.
Business Quality Grade: F
A grade indicates earnings quality is high or far above average.
B grade indicates earnings quality is good and/or above average.
C grade indicates earnings quality is acceptable or average.
D grade indicates earnings quality is poor and requires thoughtful due diligence.
F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.
Earnings Report: 12/31/24
AAAMP Portfolios Position Disclosures:
Treasure Trove Dividend (TTD) – None
Global Dividend Value (GDV) – None
Dividend Growth & Income (DGI) – None
Global Value (GV) – None
Global Value Aggressive (GVA) – None
Global Conservative Income (GCI) – None
Global High Income (GHI) – None
Company Description
Sector: Industrials
Industry: Aerospace & Defense
Company Overview:
Boeing (BA) is one of the world’s largest aerospace and defense companies, designing and manufacturing commercial airplanes, military aircraft, satellites, and space systems. It operates through three main segments: Commercial Airplanes, Defense, Space & Security, and Global Services. Boeing is a key player in global aviation, serving airlines, governments, and space exploration programs.
Company Strengths:
Boeing has a strong position in both the commercial and defense aerospace markets, benefiting from long-term contracts with airlines and government agencies. Its diverse product lineup, including the widely used 737, 777, and 787 aircraft, contributes to its global market reach. Additionally, its defense and space businesses provide stability, offsetting downturns in commercial aviation.
Company Challenges:
Boeing has faced significant challenges, including ongoing production and quality control issues, particularly with the 737 MAX and 787 Dreamliner. The company has also dealt with supply chain disruptions, delays in aircraft deliveries, and financial strain from past setbacks. Additionally, intense competition from Airbus and shifting global demand for aircraft pose risks to its market share and profitability.
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Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.