BAE Systems plc ADR (BAESY) AI Stock Analysis

• Market Cap: $78.93B
• Dividend Yield: 1.56%
• Average Volume (3M): 25.60K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 0.41
• Revenue Growth: 14.68%
• EPS Growth: 10.99%
• Country: US
• Employees: 107,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.84
• Shares Outstanding: 751,360,600
• 10 Day Avg. Volume: 40,528
• 30 Day Avg. Volume: 25,604
• PEG Ratio: 2.68
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 12.64
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 5.10
• Enterprise Value/Ebitda: 21.83
• 1Y Price Target: $105.00
• Price Target Upside: -1.92% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $105.00 ▼(-1.92% Downside)

BAE Systems' strong financial performance is the primary driver of its stock score, supported by robust revenue growth and operational efficiency. However, the valuation is relatively high, and technical indicators show mixed momentum, which tempers the overall score.

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 the sale of defense and security products and services to government and commercial customers. The company operates through several key segments, including Electronic Systems, Platforms & Services, and Cyber & Intelligence, each contributing to its overall revenue. Major revenue streams include contracts for military aircraft, naval ships, and land vehicles, as well as electronic systems and cybersecurity solutions. BAE Systems often secures long-term contracts with governments, which provide a stable revenue base. Strategic partnerships with other defense contractors, government agencies, and international allies also enhance its earnings potential, allowing for collaborative projects and shared technology development.

BAE Systems plc ADR Financial Statement Overview

Summary

BAE Systems demonstrates strong financial health with impressive revenue and profit growth, robust operational margins, and a stable balance sheet. Cash flow remains strong, supporting ongoing operations and growth initiatives.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.41B	26.31B	23.08B	21.26B	19.52B	19.28B
Gross Profit	17.27B	17.23B	15.10B	2.77B	2.50B	2.30B
EBITDA	4.04B	3.97B	3.45B	3.06B	3.13B	2.58B
Net Income	1.98B	1.96B	1.86B	1.59B	1.76B	1.30B
Balance Sheet
Total Assets	36.00B	38.14B	32.06B	31.46B	27.14B	27.53B
Cash, Cash Equivalents and Short-Term Investments	2.15B	3.38B	4.11B	3.36B	3.11B	2.96B
Total Debt	9.43B	10.15B	6.53B	6.97B	6.36B	6.68B
Total Liabilities	24.99B	26.36B	21.34B	20.06B	19.47B	22.61B
Stockholders Equity	10.84B	11.62B	10.56B	11.21B	7.44B	4.64B
Cash Flow
Free Cash Flow	2.09B	2.76B	2.80B	2.15B	1.99B	689.00M
Operating Cash Flow	3.24B	3.92B	3.76B	2.84B	2.45B	1.17B
Investing Cash Flow	-773.00M	-5.27B	-541.00M	-422.00M	66.00M	-2.04B
Financing Cash Flow	-3.05B	695.00M	-2.19B	-2.33B	-2.26B	973.00M

BAE Systems plc ADR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 107.06 is above the 20-day moving average (MA) of 107.01, above the 50-day MA of 100.02, and above the 200-day MA of 86.90, indicating a bullish trend. The MACD of 2.94 indicates Negative momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 79.93 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	$93.21B	23.27	17.91%	1.70%	11.85%	16.12%
HII	77 Outperform	$11.32B	21.29	11.59%	1.86%	-1.75%	-29.19%
NOC	77 Outperform	$88.56B	22.74	26.50%	1.37%	-0.65%	77.20%
LHX	75 Outperform	$56.40B	33.65	8.90%	1.58%	2.93%	43.29%
LMT	71 Outperform	$120.06B	28.95	73.06%	2.57%	1.09%	-35.50%
BAESY	69 Neutral	$78.93B	31.92	17.59%	1.56%	14.68%	10.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%