Spirit Aerosystems Holdings, Inc. (SPR) Company Bio
Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs, manufactures, and supplies commercial aero structures worldwide. The company operates through three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The company was founded in 1927 and is based in Wichita, Kansas.
SPR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Spirit AeroSystems Holdings Inc. To summarize, we found that Spirit AeroSystems Holdings Inc ranked in the 19th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 75.5%. As for the metrics that stood out in our discounted cash flow analysis of Spirit AeroSystems Holdings Inc, consider:
The company's balance sheet shows it gets 49% of its capital from equity, and 51% of its capital from debt. Notably, its equity weight is greater than just 23.87% of US equities in the Industrials sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.77 years, is -0.1% -- higher than only 17.1% of stocks in our DCF forecasting set.
The business' balance sheet suggests that 51% of the company's capital is sourced from debt; this is greater than 71.74% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Spirit AeroSystems Holdings Inc? See NSSC, TXT, CVA, STCN, and DXPE.
Shares of Boeing (NYSE: BA) airplane-parts supplier Spirit AeroSystems (NYSE: SPR) stock are up a strong 8.5% in 1:55 p.m. EDT trading Thursday -- and if I had to take a guess, I'd say they're up for the same reason Boeing itself is up today: Hope that airlines are getting healthier. In a column earlier today, Barron's magazine pointed out that American Airlines saw 71% sequential growth in passengers between April and May and is planning to expand capacity on domestic flights to about 55% of "normal" by July. More airplanes flying also means, though, that more airplanes will eventually get worn out and need to be replaced.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Spirit Aerosystems, Inc. New York, June 04, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Spirit Aerosystems, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
In its effort to negotiate its 737 Max order book and avoid cancellations, Boeing (NYSE: BA) has scored a pair of wins in recent days. Shares of Boeing were up 12% as of 2:30 p.m. EDT, while shares of Spirit AeroSystems (NYSE: SPR) climbed 18%, Allegheny Technologies (NYSE: ATI) and Triumph Group (NYSE: TGI) were each up 11%, and shares of TransDigm Group (NYSE: TDG) gained 10%.