1 / 26

Boeing Co.

Boeing Co. Presented By:- Darshil Shah Anjana Reddy Pratik Kamdar May 3, 2011. Agenda. Company Overview Management Discussion and Analysis SWOT Analysis Industry Overview Porters Five Force Model Competitors Valuation Recommendation. Company Overview.

effie
Télécharger la présentation

Boeing Co.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Boeing Co. Presented By:- Darshil Shah Anjana Reddy Pratik Kamdar May 3, 2011

  2. Agenda • Company Overview • Management Discussion and Analysis • SWOT Analysis • Industry Overview • Porters Five Force Model • Competitors • Valuation • Recommendation

  3. Company Overview • Boeing is the world’s largest aerospace company and leading manufacturer of commercial airplanes and defense, space and security systems • It supports airlines and U.S. & allied government customers in more than 90 countries • Headquartered out of Chicago Boeing employs more than 160,000 people across the United States and in 70 countries • Products include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication Source: 10k http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=85482&fid=7357199

  4. Boeing - Divisions Source: 10k http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=85482&fid=7357199

  5. Commercial Aircraft-Products • Manufactures family of jetliners – Cargo and passenger • Narrow body model-737 • Wide body model-767 and 777 • Under Development wide body models-747-8 and 787 • Offers aviation services support, aircraft modifications, spares, training and technical advice Source: 10k http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=85482&fid=7357199

  6. Boeing – Commercial Aircrafts • Delivered 462 airplanes in 2010 • Revenue grew by 11% for the year 2010 • Boeing 787 has 847 orders from 57 customers in 37 countries • More efficient production lines Source: 10k http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=85482&fid=7357199

  7. BDS - Products • Boeing Military Aircraft • Engaged in R&D production and modification of manned and unmanned military weapons • Mobility – AH-64 Apache, F/A-18 E/F Super Hornet • Network and Space Systems Segment • Assists customers in transforming their operations through network integrations – International Space System, Satellite System • Global Services and Support Segment • Operates, maintains, trains, upgrades and provides logistic support functions for military platform and operations – KC-767 International Tank • 82 % of revenues of BDS department have come from defense Source: 10k http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=85482&fid=7357199

  8. Geographic Sales Source: 10k http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=85482&fid=7357199

  9. Key Financials • 2010 Net Income of $3.3 billion vs. $1.3 billion in 2009 • Market Capitalization: $58.6bn • P/E: 17.53 • Current Share Price: $79.39 • Operating Margin: 7.31% • Net Profit Margin: 5.14% • Dividends Yield: 2.10 % Source http://finance.yahoo.com/q?s=BA&ql=0

  10. Recent Financials Source :http://finance.yahoo.com/q?s=BA&ql=0

  11. Stock Movement Source :http://finance.yahoo.com/q?s=BA&ql=0

  12. SWOT Analysis Source: 10k http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=85482&fid=7357199

  13. Management Discussion & Analysis • Revenues in 2010 decreased by 6 % compared to 2009 • Lower 777 deliveries as production rate changed from 7 to 5 per month • No deliveries on 747 program because of transition from 747-400 to 747-8 • BDS revenues decreased by $1,718 m due to lower revenues in Network and Space Systems Segment • Operating earnings in 2010 increased by $ 2,875 m compared to 2009 • Commercial Airplanes earnings increased by $ 3,589 m primarily due to $ 2,693 m costs related to first three 787 flight test aircraft included in R & D in 2009 • Long term outlook for the industry remains positive due to fundamental drivers of air travel growth such as: • Economy growth • Trade • Liberalization of air traffic rights between countries Source: 10k http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=85482&fid=7357199

  14. Management Discussion & Analysis • To increased the manufacturing of existing commercial airplanes • The company expects the R&D costs to go down in the future

  15. R&D Source: 10k http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=85482&fid=7357199

  16. Industry Overview • Industry – Aerospace and Defense • Revenues accrued by manufacturers from civil and military aerospace and defense procurements • Major products and services: • Aircraft • Aircraft engines and engine parts • Other aircraft parts and auxiliary equipment • In 2014, the market value is expected to be $1,190.5 billion, an increase of 29.3% since 2009 • Defense is the largest segment accounting for 71.8 % of the sector’s total value • $ 3.6 trillion market for 30,900 new airplanes over the next 20 years Source: Datamonitor Industry Report

  17. Industry Overview • Global aerospace and defense industry segmentation: • External Drivers: • Federal Funding for Defense • Demand from international airlines • Industry systems and technology • Demand from domestic airlines Source: Datamonitor Industry Report

  18. Porters Five Force Analysis • Supplier Power (Moderate) • Suppliers are small. However, the high quality inputs provided by suppliers dilute the bargaining power of players • The quality and availability of these inputs is highly important to the quality of the end products in the aerospace and defense industry, increasing the power of the suppliers • Too many suppliers • Buyer Power (Moderate) • Large size of competitors due to merger activity • Players are limited as Airbus and Boeing have a virtual duopoly • Buyers typically government organizations which flex their financial muscles to dilute the bargaining power of players Source: Datamonitor Industry Report

  19. Porters Five Force Analysis • Threat of New Entrants (Low) • High capital outlay and expertise • The arms industry has become highly concentrated, nationally and internationally • Threat of Substitutes (Low) • No real threat of substitutes in defense and aircrafts, however air freight section might be affected with increase in concerns of carbon emissions as companies are seeking eco-friendly reputation • Degree of Rivalry (Strong) • Due to duopoly, Airbus and Boeing are the sole rivals and they are quite evenly matched • Competition is intense in terms of winning defense contracts and companies use innovation and new technology to differentiate their service Source: Datamonitor Industry Report

  20. Historic Growth

  21. Key Players Source: Datamonitor Industry Report

  22. Competitor Analysis (Fiscal year 12/31/2010) Source: Datamonitor Industry Report

  23. Comparable Valuation

  24. Discount Rate Valuation

  25. DCF Valuation

  26. Recommendation • Based on a strong future growth and a heavy backlog of orders we expect the company to do well going forward • We recommend that the company be kept on the watch list

More Related