Tuesday, December 20, 2011

The Boeing Company (NYSE: BA)

Currently, each share is trading at 72.54. Growth for the company looks mildly healthy. Fitch predicts a stable 2012 outlook for the global aerospace and defense sector. Boeing may be one of the few companies facing short-term gains if further unsettling developments unfold in the Korean Peninsula after the death of Kim Jong Il.

Looking at the financial statements, the numbers look relatively healthy as well. Net income and equity both have been positive and growing for 2011, with net income climbing from $586M for Q1 this year to $1,094M for Q3. At the cash flow statement, there are several negative subtotals. But the cumulative negative cash flow in 2010 mainly stems from investment. For the 9-month period ending this September, cash flow from financing was beyond a billion in the negative, mainly from dividends. A look at the annual cash flow statements from the past 4 years reveals that while dividends are increasing, the growth rate has drastically slowed down.

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