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The Boeing Co.
Ticker: $BA
Sector: Industrials
Curr. Price: $170.14
Market Cap: $96.03B
designs, manufactures, sales, services & supports commercial jetliners, military aircraft, satellites, missile defense, human space flight & launch systems[Thread]
Financial Metrics Shiller P/E Ratio: 23.66
P/S Ratio: 1.45
Prev. 5Y Growth: 11.23%
Proj. 5Y Growth: 12.33%
Current Ratio: 1.41
Dividend Yield: N/A
Payout Ratio: N/A
ROIC: -2.93%
[cont.]
News In March 2019 the 737 MAX was grounded worldwide after two fatal crashes. Both were blamed on the new automated flight control system dubbed MCAS.
Boeing planned for recertification later in the year, but the FAA said it wouldn’t be cleared until 2020.
[cont.]
News In January, Boeing halted production of the 737 MAX. Around the same time, internal emails leaked where employees mocked the FAA.
Production has since been restarted in May, but at a much slower rate.
1st recertification test flight completed in late June.
[cont.]
News After constant delays, the FAA released its final requirements for the 737 MAX design changes earlier this month. Once the documents are published it will set in motion a 45-day period before recertification can be approved (expected to be in October).
[cont.]
News There has also been a delay in the recertification by European & Canadian regulators. This puts their certification for those critical markets in danger of sliding out to 2021.
Meanwhile, China regulators have not laid out their plans for recertification.
[cont.]
News Boeing has also announced further production cuts & layoffs on top of the ones they made a few months ago:
The 787 rate will drop from 10 to 6/month in 2021
The 777 will go 5 to 2
The 747 is down to 0.5
And the 737 MAX will slowly ramp up to 31 in 2022
[cont.]
News A second voluntary layoff was offered to employees in the commercial division yesterday. This will mean Boeing will exceed the original plan of 10% reduction in workforce. CEO Dave Calhoun anticipates “a significantly smaller marketplace for the next 3 years”
[cont.]
Summary 
Stock YTD: -48% 
Perfect storm of 737 MAX issues + COVID-19 pandemic Q2/20 Revenue -25% YoY Q2/20 operating cash flow of-$5.3B (vs -$0.6B in Q2/19)
$10B combined cash burn in first two quarters [cont.]
Tacked on ~$39B of LT debt this year (increase of 195%) As a result, cash position now $32.4B Negative free cash flow for 4 straight qtrs 2019 was worst year in 30+ yrs in terms of orders & deliveries (net negative) Posted 1st loss in 20 yrs [cont.]
MAX cancellations rising:416 YTD + 448 additional removals from the backlog (864 total)
MAX backlog still 3,498 planes (equivalent of ~$326B) Defense, Space & Security backlog of $64B Q2 DSS Revenue stable YoY Global Services backlog of $18B [cont.]
No longer #1 manufacturer in the world (Airbus) Expect negative cash flow into 2021 but net positive by end of ‘21 
Not expected to reach 2018 levels until 2024 
Disclaimer: I am not a financial advisor. This information is intended for educational purposes only
