Boeing (NYSE:BA) stock is trending lower on Tuesday April 15, after Bloomberg reported that China has ordered its airlines to stop accepting any more Boeing aircraft. This decision appears to be a retaliatory measure in the trade war with the U.S., which has seen President Donald Trump impose tariffs of up to 145% on Chinese products.
We view Boeing stock around $160 as an unattractive investment. Despite a seemingly moderate valuation, our analysis reveals significant concerns due to the company’s weak operating performance and financial condition. This assessment is based on a comparison of its current valuation with its recent operating history and overall financial health across key areas like Growth, Profitability, Financial Stability, and Downturn Resilience, the details of which follow. That said, if you seek upside with lower volatility than individual stocks, the Trefis High-Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
How Does Boeing’s Valuation Look vs. The S&P 500?
Going by what you pay per dollar of sales or profit, BA stock looks cheap compared to the broader market.
- Boeing has a price-to-sales (P/S) ratio of 1.7 vs. a figure of 2.8 for the S&P 500
How Have Boeing’s Revenues Grown Over Recent Years?
Boeing’s Revenues have fallen over recent years.
- Boeing has seen its top line grow at an average rate of 3.1% over the last 3 years (vs. increase of 6.2% for S&P 500)
- Its revenues have decreased 14.5% from $78 Bil to $67 Bil in the last 12 months (vs. growth of 5.3% for S&P 500)
- Also, its quarterly revenues declined 30.8% to $15 Bil in the most recent quarter from $22 Bil a year ago (vs. 4.9% improvement for S&P 500)
How Profitable Is Boeing?
Boeing’s profit margins are considerably worse than most companies in the Trefis coverage universe.
- Boeing’s Operating Income over the last four quarters was $-11 Bil, which represents a very poor Operating Margin of -16.3% (vs. 13.1% for S&P 500)
Does Boeing Look Financially Stable?
Boeing’s balance sheet looks fine.
- Boeing’s Debt figure was $54 Bil at the end of the most recent quarter, while its market capitalization is $118 Bil (as of 4/14/2025). This implies a poor Debt-to-Equity Ratio of 47.1% (vs. 21.5% for S&P 500). [Note: A lower Debt-to-Equity Ratio is desirable]
- Cash (including cash equivalents) makes up $26 Bil of the $156 Bil in Total Assets for Boeing. This yields a strong Cash-to-Assets Ratio of 16.8% (vs. 15.0% for S&P 500)
How Resilient Is BA Stock During A Downturn?
BA stock has fared much worse than the benchmark S&P 500 index during some of the recent downturns. Worried about the impact of a market crash on BA stock? Our dashboard How Low Can Boeing Stock Go In A Market Crash? has a detailed analysis of how the stock performed during and after previous market crashes.
Inflation Shock (2022)
- BA stock fell 57.0% from a high of $269.19 on 12 March 2021 to $115.86 on 13 June 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $264.27 on 17 December 2023 and it currently trades at around $160
Covid Pandemic (2020)
- BA stock fell 72.7% from a high of $347.45 on 12 February 2020 to $95.01 on 20 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
- The stock is yet to recover to its pre-Crisis high
Global Financial Crisis (2008)
- BA stock fell 72.6% from a high of $107.23 on 25 July 2007 to $29.36 on 3 March 2009, vs. a peak-to-trough decline of 56.8% for the S&P 500
- The stock fully recovered to its pre-Crisis peak by 18 July 2013
Putting All The Pieces Together: What It Means For BA Stock
In summary, Boeing’s performance across the parameters detailed above are as follows:
- Growth: Very Weak
- Profitability: Extremely Weak
- Financial Stability: Neutral
- Downturn Resilience: Extremely Weak
- Overall: Very Weak
Despite its seemingly low valuation, we maintain our view that Boeing’s stock is unattractive and not a good investment. This stance is further supported by ongoing tariff issues and China’s recent retaliatory measures, which include instructing Chinese airlines to cease accepting Boeing aircraft deliveries. These factors are expected to negatively impact the company’s stock price in the near term.
While you would do well to avoid BA stock for now, you could explore the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
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