Boeing Stock Analysis- $BA - is Boeing's Stock a Good Buy Today? | Summary and Q&A

TL;DR

Boeing's stock appears overvalued at $240 per share, with a fair value estimate of $212, considering its business segments, revenue trends, dividend history, and debt.

Key Insights

• ✈️ Boeing's revenue has been significantly impacted by problems with commercial airplanes and the effects of COVID-19.
• 👻 The company's dividend growth has been paused, allowing an opportunity for a reset and potential future growth.
• 🥺 Analyzing debt is crucial in determining the fair value of Boeing's stock, and using total liabilities can lead to double-counting of obligations.

Transcript

hi i'm jimmy in this video we're looking at boeing stock ticker symbol ba this video is part of our dial 30 analysis where we're analyzing all 30 companies in the dow jones industrial average the goal is to see which of these companies could be worth buying today even though broadly speaking the stock market seems to be over value i'll leave a link... Read More

Questions & Answers

Q: How has revenue from commercial airplanes impacted Boeing's business?

Revenue from commercial airplanes has dropped significantly, negatively affecting Boeing's overall business. This decline can be attributed to the problems faced with the 737 and 777 commercial airplanes and the impact of COVID-19.

Q: Why did Boeing pause its dividend growth, and what are the expectations for dividends in the future?

Boeing paused its dividend growth to save cash during challenging times and to reassess its growth strategy. Analysts predict the resumption of dividends in 2022, potentially in the second or third quarter.

Q: How has Boeing's debt situation changed over the years?

Boeing's debt has seen a drastic increase, especially when considering short and long-term debt. The trend initially showed a positive direction but later saw an increase in debt. By examining the debt chart, it is clear that liabilities and debt are not the same and need to be treated differently in fair value calculations.

Q: What is the fair value estimate for Boeing stock?

The fair value estimate for Boeing stock is around $212 per share. Currently, the stock is trading at $240 per share, indicating a potential overvaluation. A margin of safety, such as a 20% discount, is recommended due to the company's history of challenges.

Summary & Key Takeaways

• Boeing's business is divided into four primary segments, with the commercial airline segment being a major driver for revenue.

• The company has faced challenges due to issues with the 737 and 777 commercial airplanes and the impact of COVID-19.

• Revenue from commercial airplanes has significantly dropped in recent years, but there are expectations of a revenue increase in the future.

• Boeing paused its dividend growth during troubled times, but analysts predict the resumption of dividends in 2022.

• The company's debt has seen a drastic increase, which may impact its fair value calculation.