BAE Systems (UK) Buy Hold or Sell Recommendation
| BA Stock | 1,334 8.50 0.64% |
Assuming the 90 days trading horizon and your highly speculative risk level, our recommendation regarding BAE Systems plc is 'Strong Buy'. Macroaxis provides BAE Systems buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding BA positions.
Check out BAE Systems Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as BAE and provide practical buy, sell, or hold advice based on investors' constraints. BAE Systems plc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
BAE |
Execute BAE Systems Buy or Sell Advice
The BAE recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on BAE Systems plc. Macroaxis does not own or have any residual interests in BAE Systems plc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute BAE Systems' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
BAE Systems Trading Alerts and Improvement Suggestions
| BAE Systems plc is unlikely to experience financial distress in the next 2 years | |
| About 72.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from news.google.com: BAE Systems contract with US Army for MCSKS system - Marketscreener.com |
BAE Systems Returns Distribution Density
The distribution of BAE Systems' historical returns is an attempt to chart the uncertainty of BAE Systems' future price movements. The chart of the probability distribution of BAE Systems daily returns describes the distribution of returns around its average expected value. We use BAE Systems plc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of BAE Systems returns is essential to provide solid investment advice for BAE Systems.
| Mean Return | 0.05 | Value At Risk | -2.68 | Potential Upside | 2.85 | Standard Deviation | 1.65 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of BAE Systems historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
BAE Systems Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (76M) | 24M | 54M | (93M) | (223M) | (211.9M) | |
| Change In Cash | (645M) | 80M | 250M | 190M | 960M | 1.0B | |
| Free Cash Flow | 1.1B | 689M | 2.0B | 2.1B | 2.7B | 2.8B | |
| Depreciation | 660M | 675M | 720M | 767M | 787M | 551M | |
| Other Non Cash Items | 261M | 306M | 263M | (26M) | 440M | 462M | |
| Capital Expenditures | 470M | 477M | 462M | 693M | 957M | 1.0B | |
| Net Income | 1.5B | 1.4B | 1.9B | 1.7B | 1.9B | 1.9B | |
| End Period Cash Flow | 2.6B | 2.7B | 2.9B | 3.1B | 4.1B | 2.2B | |
| Dividends Paid | 724M | 746M | 777M | 802M | (857M) | (814.2M) | |
| Investments | (6M) | 17M | (18M) | (422M) | (541M) | (514.0M) | |
| Net Borrowings | (1.0B) | 1.9B | (584M) | (636M) | (572.4M) | (543.8M) | |
| Change To Netincome | (192M) | (1.1B) | (100M) | 161M | 144.9M | 152.1M |
BAE Systems Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to BAE Systems or Aerospace & Defense sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that BAE Systems' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a BAE stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.08 | |
β | Beta against Dow Jones | 0.96 | |
σ | Overall volatility | 1.67 | |
Ir | Information ratio | -0.05 |
BAE Systems Volatility Alert
BAE Systems plc has relatively low volatility with skewness of -0.1 and kurtosis of 1.1. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure BAE Systems' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact BAE Systems' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.BAE Systems Fundamentals Vs Peers
Comparing BAE Systems' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze BAE Systems' direct or indirect competition across all of the common fundamentals between BAE Systems and the related equities. This way, we can detect undervalued stocks with similar characteristics as BAE Systems or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of BAE Systems' fundamental indicators could also be used in its relative valuation, which is a method of valuing BAE Systems by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare BAE Systems to competition |
| Fundamentals | BAE Systems | Peer Average |
| Return On Equity | 0.17 | -0.31 |
| Return On Asset | 0.0446 | -0.14 |
| Profit Margin | 0.07 % | (1.27) % |
| Operating Margin | 0.10 % | (5.51) % |
| Current Valuation | 47.61 B | 16.62 B |
| Shares Outstanding | 3 B | 571.82 M |
| Shares Owned By Insiders | 0.14 % | 10.09 % |
| Shares Owned By Institutions | 71.51 % | 39.21 % |
| Price To Book | 3.56 X | 9.51 X |
| Price To Sales | 1.63 X | 11.42 X |
| Revenue | 23.08 B | 9.43 B |
| Gross Profit | 14.06 B | 27.38 B |
| EBITDA | 3.2 B | 3.9 B |
| Net Income | 1.86 B | 570.98 M |
| Cash And Equivalents | 1.17 B | 2.7 B |
| Total Debt | 6.48 B | 5.32 B |
| Book Value Per Share | 3.73 X | 1.93 K |
| Cash Flow From Operations | 3.76 B | 971.22 M |
| Earnings Per Share | 0.60 X | 3.12 X |
| Price To Earnings To Growth | 3.50 X | 4.89 X |
| Target Price | 1440.41 | |
| Number Of Employees | 100 K | 18.84 K |
| Beta | 0.32 | -0.15 |
| Market Capitalization | 40.03 B | 19.03 B |
| Total Asset | 32.06 B | 29.47 B |
| Retained Earnings | 3.02 B | 9.33 B |
| Working Capital | 830 M | 1.48 B |
| Annual Yield | 0.02 % | |
| Net Asset | 32.06 B | |
| Last Dividend Paid | 0.31 |
BAE Systems Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as BAE . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About BAE Systems Buy or Sell Advice
When is the right time to buy or sell BAE Systems plc? Buying financial instruments such as BAE Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
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Other Information on Investing in BAE Stock
BAE Systems financial ratios help investors to determine whether BAE Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in BAE with respect to the benefits of owning BAE Systems security.