BA.L
🛡️ BAE Systems is a major player in defense, security, and aerospace, exporting its innovations to over 100 countries.
🚀 The company’s operating profit has grown by 80% since 2020, driven by increased defense contracts.
💸 BAE Systems has record free cash flow of over $2.5 billion in 2024, allowing for investment in new defense systems.
⚖️ While many defense companies have high P/E ratios, BAE Systems’ P/E ratio of around 30 is comparatively less excessive.
@rankia:
“BAE is one of the great titans in defense, security, and aerospace industry. The conglomerate emerged from the merger of several British companies, and today exports its innovations to more than 100 countries, signing contracts with both governments and civilian clients. For example, among its cutting-edge products are drones or latest generation fighter jets, which makes it an ideal candidate to supply a good part of the future defense contracts of the Eurozone, especially if the NATO countries decide to start increasing their military spending. In financial terms, the company has not stopped growing since 2020. Its operating profit has risen 80%, and if defense contracts continue to increase, it is likely that this trend will continue. On the other hand, its free cash flow increased by more than 25% in the last year, and 70% in the last two years, exceeding 2,500 million dollars in 2024. A record that allows it to invest in new defense systems without excessively indebting itself. As for the dividend part, its policy varies between years of increase and years of decrease. Even so, the dividend yield is currently around 2%, and the company maintains a payout that has never fallen below 40% during the last decade. If we go to the chart, BAE has made a huge jump this last month, like many other European defense companies, and it is that the market already anticipates a rearmament of old Europe. My personal opinion, in terms of valuation, most defense companies have soared to P/E ratios of 60 or 70 times, especially the French ones. BAE, on the other hand, is around 30 times, which is still high but not so excessive.”
Below, you can see the exact part of the @rankia YouTube video where BAE Systems is discussed:
View the video on YouTube.
Read more articles analyzing BAE Systems (BA.L) at the following link. BA.L stock.
