Spirit Aerosystems Stock Fair Value Calculation – SPIRIT AEROSYSTEMS Reports Earnings Results for FY2023 Q2 on June 30, 2023
August 7, 2023
☀️Earnings Overview
On June 30, 2023, SPIRIT AEROSYSTEMS ($NYSE:SPR) released its earnings results for the second quarter of fiscal year 2023. Compared to the same period the prior year, the company’s total revenue had increased by 8.5%, reaching USD 1364.7 million. Conversely, net income for the quarter was reported as USD -206.3 million, a decrease of -122.2 million from the year before.
Market Price
The stock opened at $30.2 in the morning, but closed at $22.9, a plunge of 27.3% from its last closing price of 31.4. This marks a significant decline in the company’s stock, as investors reacted to the disappointing financial results. Despite better-than-expected cost savings, these factors contributed to the overall decline in SPIRIT AEROSYSTEMS’ stock.
Overall, investors have been disappointed in the company’s performance in the previous quarter, leading to a significant drop in the stock price compared to the previous day’s opening price. Investors will be paying close attention to the company’s upcoming earnings reports in order to gauge the long-term performance of SPIRIT AEROSYSTEMS. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Spirit Aerosystems. More…
| Total Revenues | Net Income | Net Margin |
| 5.39k | -858.2 | -15.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Spirit Aerosystems. More…
| Operations | Investing | Financing |
| -291.9 | -159.4 | 205.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Spirit Aerosystems. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.55k | 7.17k | -6.01 |
Key Ratios Snapshot
Some of the financial key ratios for Spirit Aerosystems are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.3% | 1.1% | -10.4% |
| FCF Margin | ROE | ROA |
| -7.8% | 65.2% | -5.4% |
Analysis – Spirit Aerosystems Stock Fair Value Calculation
GoodWhale’s analysis of SPIRIT AEROSYSTEMS‘ fundamentals shows that the company is undervalued. Our proprietary Valuation Line estimates the fair value of SPIRIT AEROSYSTEMS’ share to be around $46.1. In contrast, the current market price of the stock is $22.9, indicating that it is undervalued by 50.3%. This presents an opportunity for investors to take advantage of the discrepancy and benefit from potential returns. More…
Peers
The global commercial aerospace market is forecast to grow at a CAGR of around 5% during 2020-2024, according to Technavio. Spirit AeroSystems Holdings Inc is one of the leading players in the commercial aerospace market. The company’s competitive advantages include its strong customer relationships, efficient supply chain, and advanced technology and manufacturing capabilities.
However, the company faces competition from Dassault Aviation SA, Grupo Aeroportuario del Sureste SAB de CV, and AAR Corp.
– Dassault Aviation SA ($LTS:0IAX)
Dassault Aviation SA is a French aircraft manufacturer that was founded in 1929. The company has a market cap of 12.35B as of 2022 and a Return on Equity of 9.29%. Dassault Aviation is best known for its line of business jets, which are used by both private individuals and businesses. The company also produces a variety of other aircraft, including military jets and helicopters.
– Grupo Aeroportuario del Sureste SAB de CV ($NYSE:ASR)
Grupo Aeroportuario del Sureste SAB de CV is a Mexican airport operator with a portfolio of 13 airports across 9 states in southeastern Mexico. It is the second largest airport operator in Mexico in terms of passenger traffic and has a market cap of 6.82B as of 2022. It also has a strong ROE of 22.6%.
– AAR Corp ($NYSE:AIR)
AAR Corp is a leading provider of aviation services to commercial and government operators worldwide. The company has a market cap of 1.51B as of 2022 and a return on equity of 7.44%. AAR Corp provides a wide range of services including aircraft maintenance, repair and overhaul, engineering support, parts supply, and flight support services. The company has a long history of providing quality services to its customers and is a trusted partner in the aviation industry.
Summary
This is a 8.5% increase in total revenue compared to the same period last year, but a decrease of -122.2 million in net income. The stock price reacted negatively to the news, reflecting investors’ concerns about the company’s financial performance. Investors should consider closely how this development affects Spirit Aerosystems‘ fiscal health, profitability outlook, and ability to generate future returns. Investors should also research the competitive dynamics of the industry to see how Spirit Aerosystems compares to its competitors.
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