BOEING COMPANY NYSE-BA
TIMELINESS
SAFETY
TECHNICAL
2
1
3
High:
Low:
Raised 10/30/15
55.5
38.0
RECENT
PRICE
72.4
49.5
92.1
65.9
18.6 RELATIVE
DIV’D
Median: 18.0) P/E RATIO 0.88 YLD 2.7%
147.74 P/ERATIO 16.0(Trailing:
107.8
84.6
88.3
36.2
56.6
29.0
76.0
54.1
80.6
56.0
77.8
66.8
142.0
72.7
144.6
116.3
158.8
115.1
Target Price Range
2018 2019 2020
LEGENDS
12.0 x ″Cash Flow″ p sh
. . . . Relative Price Strength
Options: Yes
Shaded area indicates recession
Raised 6/13/14
Lowered 12/11/15
BETA 1.05 (1.00 = Market)
VALUE
LINE
320
200
160
120
100
80
60
2018-20 PROJECTIONS
Ann’l Total
Price
Gain
Return
High 185 (+25%)
8%
Low 155
(+5%)
4%
Insider Decisions
to Buy
Options
to Sell
J
0
0
0
F
0
6
6
M
0
0
0
A
0
0
0
M
0
1
2
J
0
0
0
J
0
0
0
A
0
3
4
S
0
0
0
40
% TOT. RETURN 11/15
Institutional Decisions
1Q2015
2Q2015
3Q2015
628
573
629
to Buy
to Sell
586
598
554
Hld’s(000) 517386 502752 506570
Percent
shares
traded
18
12
6
1 yr.
3 yr.
5 yr.
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
66.60 61.36 72.94 67.61 63.08 66.13 72.11 81.19 90.12 87.24 94.01 87.46 92.30 108.12
4.22
4.77
5.10
4.72
2.82
3.57
4.50
5.78
7.53
5.94
4.13
6.85
7.08
7.56
2.19
2.84
2.79
2.82
1.00
1.63
2.39
3.62
5.26
3.63
1.87
4.46
4.82
5.11
.56
.59
.68
.68
.68
.85
1.05
1.25
1.45
1.62
1.68
1.68
1.68
1.76
1.42
1.11
1.34
1.25
.93
1.23
2.03
2.22
2.35
2.40
1.63
1.53
2.30
2.25
13.16 13.18 13.57
9.62 10.17 14.23 14.54
6.25 12.22 d1.85
2.93
3.76
4.72
7.76
870.82 836.33 797.89 799.66 800.28 793.20 760.58 757.84 736.68 698.14 726.29 735.30 744.70 755.60
18.6
17.1
18.6
14.1
33.4
29.4
26.0
22.2
17.9
18.3
24.1
14.7
14.5
14.3
1.06
1.11
.95
.77
1.90
1.55
1.38
1.20
.95
1.10
1.61
.94
.91
.91
1.4%
1.2%
1.3%
1.7%
2.0%
1.8%
1.7%
1.6%
1.5%
2.4%
3.7%
2.6%
2.4%
2.4%
CAPITAL STRUCTURE as of 9/30/15
Total Debt $9016 mill. Due in 5 Yrs $4000 mill.
LT Debt $8402 mill.
LT Interest $280 mill.
(Total interest coverage ’14: 21.4x)
(55% of Cap’l)
Leases, Uncapitalized Annual Rentals $277 mill.
Pension Assets-12/14 $61.1 bill. Oblig. $78.4 bill.
Pfd Stock None
Common Stock 669,983,631 shs.
as of 10/14/15
MARKET CAP: $99.0 billion (Large Cap)
CURRENT POSITION 2013
2014
($MILL.)
Cash Assets
15258 13092
Receivables
6546
7729
Inventory (Avg Cst) 42912 46756
Other
358
208
Current Assets
65074 67785
Accts Payable
23629 24010
Debt Due
1563
929
Other
26294 31778
Current Liab.
51486 56717
ANNUAL RATES Past
of change (per sh)
10 Yrs.
Revenues
6.0%
‘‘Cash Flow’’
9.0%
Earnings
13.0%
Dividends
11.5%
Book Value
1.5%
Calendar
2012
2013
2014
2015
2016
Calendar
2012
2013
2014
2015
2016
Calendar
2011
2012
2013
2014
2015
9/30/15
9857
8854
48624
241
67576
11777
614
45417
57808
Past Est’d ’12-’14
5 Yrs.
to ’18-’20
5.5%
7.5%
8.5%
9.5%
11.5% 11.0%
7.0% 14.5%
24.5%
7.0%
QUARTERLY REVENUES ($ mill.)
Mar.31 Jun.30 Sep.30 Dec.31
19383 20005 20008 22302
18893 21815 22130 23785
20465 22045 23784 24468
22149 24543 25849 23459
23900 24300 24500 24800
EARNINGS PER SHARE A
Mar.31 Jun.30 Sep.30 Dec.31
1.21
1.27
1.35
1.28
1.44
1.41
1.51
1.61
1.28
2.24
1.86
2.02
1.87
1.59
2.47
2.37
2.15
2.25
2.35
2.50
QUARTERLY DIVIDENDS PAID B ■
Mar.31 Jun.30 Sep.30 Dec.31
.42
.42
.42
.42
.44
.44
.44
.44
.485
.485
.485
.485
.73
.73
.73
.73
.91
.91
.91
.91
Full
Year
81698
86623
90762
96000
97500
(A) Diluted egs. Excl. nonrecur. gns./losses:
’99, 30¢; ’00, d40¢; ’01, 62¢; ’02, d$2.21; ’03,
d11¢; ’04, 67¢; ’05, 72¢; ’06, d54¢; ’07, 2¢; ’08,
2¢; ’09, d3¢; ’10, 45¢; ’11, 52¢. Includes $0.77
Full
Year
5.11
5.96
7.38
8.30
9.25
Full
Year
1.68
1.76
1.94
2.92
54845
7.4%
1503.0
1920.0
29.0%
3.5%
d6220
9538.0
11059
11.0%
17.4%
9.9%
43%
61530
9.0%
1545.0
2839.0
28.6%
4.6%
d6718
8157.0
4739.0
24.3%
59.9%
39.7%
34%
66387 60909 68281 64306 68735
11.1%
8.9%
5.4% 10.2% 10.7%
1486.0 1491.0 1666.0 1727.0 1660.0
4058.0 2654.0 1335.0 3311.0 3614.0
33.7% 33.6% 22.9% 26.5% 33.0%
6.1%
4.4%
2.0%
5.1%
5.3%
d4258 d4961 2392.0 5177.0 8536.0
7455.0 6952.0 12217 11473 10018
9004.0 d1294 2128.0 2766.0 3515.0
26.5% 51.1% 11.3% 25.6% 29.0%
45.1%
- - 62.7% 119.7% 102.8%
32.9%
-5.4% 74.4% 67.4%
27%
45%
91%
38%
34%
81698
9.7%
1811.0
3903.0
34.0%
4.8%
12327
8973.0
5867.0
28.2%
66.5%
44.0%
34%
THIS
STOCK
VL ARITH.*
INDEX
11.0
109.6
156.3
-2.0
48.1
71.2
© VALUE LINE PUB. LLC
18
18-20
115.90 128.43 144.35 152.35
8.60 10.40 11.55 12.75
5.96
7.38
8.30
9.25
1.94
2.92
3.64
4.00
2.81
3.16
3.60
3.75
19.90 12.26 11.30 14.05
747.40 706.70 665.00 640.00
17.3
17.4 Bold figures are
Value Line
.97
.91
estimates
1.9%
2.3%
Revenues per sh
‘‘Cash Flow’’ per sh
Earnings per sh A
Div’ds Decl’d per sh B■
Cap’l Spending per sh
Book Value per sh C
Common Shs Outst’g D
Avg Ann’l P/E Ratio
Relative P/E Ratio
Avg Ann’l Div’d Yield
183.35
15.40
11.35
5.00
4.00
20.00
600.00
15.0
.95
2.9%
86623
9.4%
1844.0
4586.0
26.4%
5.3%
13588
8072.0
14875
20.8%
30.8%
21.0%
32%
Revenues ($mill)
Operating Margin
Depreciation ($mill) E
Net Profit ($mill)
Income Tax Rate
Net Profit Margin
Working Cap’l ($mill)
Long-Term Debt ($mill)
Shr. Equity ($mill)
Return on Total Cap’l
Return on Shr. Equity
Retained to Com Eq
All Div’ds to Net Prof
110000
11.5%
2100
7150
30.0%
6.5%
14500
7000
12000
38.0%
60.0%
35.0%
44%
90762
10.1%
1906.0
5446.0
23.7%
6.0%
11068
8141.0
8665.0
33.4%
62.9%
38.4%
39%
96000
10.5%
1925
5770
30.0%
6.0%
10000
8000
7500
38.0%
77.0%
44.5%
44%
97500
11.0%
1975
6200
30.0%
6.4%
11000
8000
9000
37.0%
69.0%
40.0%
43%
BUSINESS: The Boeing Company is a leading manufacturer of
commercial aircraft. Manufactures the 737, 747, 767, 777, and 787.
Also produces business jets, fighters (F-15, F/A-18), helicopters
(CH-47, AH-64); guided weapons (Harpoon, Joint Direct Attack
Munition), satellites, space launch systems, and manages the International Space Station. In 2014, foreign sales accounted for 58% of
total; R&D: 3.4%. Has 165,500 employees. Officers & directors
control about 0.6% of stock; State Street Corp., 11.2%; Evercore
Trust, 6.6%; Cap’l World Investors, 8.7%; T. Rowe, 5.5% (3/15
proxy). CEO: Dennis A. Muilenburg. Chrmn.: W. James McNerney,
Jr. Inc.: Delaware. Addr.: 100 North Riverside Plaza, Chicago, IL
60606-1596. Tel.: 312-544-2000. Web: www.boeing.com.
Shares of Boeing have been volatile of
late. After a terrific multiyear run, the
stock underperformed the broader market
over the first nine months of 2015. In fact,
the price dropped 7%, compared to the
Dow’s increase of 1%. In our view, the
lackluster showing can mostly be attributed to profit taking, and we remain bullish in regard to Boeing’s near- and longterm prospects (discussed below). More
recently, since our September review, the
issue has made up most of the lost ground,
having increased about 10%.
We think the stock holds significant
investment appeal. For starters, according to our proprietary Ranking System for
Timeliness, Boeing shares will outperform
the year-ahead market. It also garners our
top rank for Safety and holds an aboveaverage dividend yield. What’s more,
Boeing’s board will probably remain
focused on returning cash to shareholders
in the form of dividend hikes and share
repurchases. On the latter note, during
the first nine months of this year, it
bought back 41.4 million shares totaling
$6.0 billion. Another $6.0 billion remains
available for additional repurchases. All
told, we think that BA would make a fine
core holding in most portfolios.
Looking ahead, the company’s prospects remain healthy. Boeing’s commercial aircraft backlog stands at 5,700 planes
valued at $485 billion. This should easily
support full production for many years. In
fact, management continues to expand
production of some of its most popular
models, including the 737, 777, and 787.
We also believe that more orders are on
the horizon, since a number of airlines,
thanks to reduced fuel prices and vigorous
demand for flights, are now on better financial footing, and appear eager to replace their aging fleets with technologically advanced and fuel-efficient aircraft.
We have once again upwardly revised
our earnings estimates. Thanks to
better-than-expected
September-quarter
financial results, elevated plane deliveries
and orders, as well as a lower share count
and reduced R&D expenditures, we now
expect 2015 share net of $8.30, up from
our previous call of $7.95. For 2016, our
estimate is $9.25 a share, or 11% better
than this year’s probable tally.
Ian Gendler
December 11, 2015
a share charge in 2Q ’15. EPS may not sum to 2014: $8.0 bill., $11.32/sh. (D) In millions. (E)
total due to round’g. Next egs. rpt. due late Depr. on accelerated basis.
Jan. (B) Div’ds paid in early Mar., Jun., Sept.,
Dec. ■ Div’d rein. plan avail. (C) Incl intang. In
© 2015 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind.
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Company’s Financial Strength
Stock’s Price Stability
Price Growth Persistence
Earnings Predictability
A++
80
75
30
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