Boeing Co (BA, Financial) shares experienced a notable rise, appreciating by 4.5% as the company announced the resumption of 737 MAX jet production. This development follows the conclusion of a seven-week strike involving 33,000 workers, signaling a positive turn for the company’s production capabilities.
Boeing (BA, Financial), a prominent player in the aerospace and defense sector, operates through several key segments: commercial airplanes, defense, space, and security, as well as global services. The recent production restart is expected to support its commercial segment, crucially competing against Airbus for aircraft capacity exceeding 130 passengers.
Currently, Boeing's stock price stands at $164.10, with a market capitalization of approximately $122.78 billion. However, the company faces financial challenges, indicated by an Altman Z-Score of 1.13, placing it within the distress zone, and a Piotroski F-Score of 1, suggesting subpar business operations. Additionally, Boeing has a Beneish M-Score of -1.6, hinting at possible financial statement manipulation.
Despite these warning signs, Boeing's Price-to-Sales (P/S) ratio of 1.29 is near a three-year low, potentially presenting a valuation opportunity for investors. The GF Value for Boeing is estimated at $186.89, positioning it as "Modestly Undervalued." For more details, you can view the GF Value of Boeing (BA, Financial).
While Boeing's return metrics such as ROIC and ROC both reflect negative values, impacted by recent financial turbulence, the ongoing recovery in production output could offer a path to stability. Investors might find interest in Boeing's strategic position within the aerospace and defense industry despite its present financial challenges.
