Spirit AeroSystems Holdings Inc (SPR, Financial) has recently experienced a notable uptick in its stock performance. With a current market capitalization of $3.31 billion, the stock price stands at $28.57, reflecting a 5.89% gain over the past week. More impressively, the past three months have seen a 28.98% gain, signaling a significant positive shift in investor sentiment. Despite these gains, the GF Value of $45.81 suggests that the stock may still be undervalued, although it has risen from the past GF Value of $43.96. However, the current GF Valuation warns investors of a possible value trap, advising caution before making investment decisions, a sentiment that remains unchanged from the past valuation.
Introduction to Spirit AeroSystems Holdings Inc
Spirit AeroSystems Holdings Inc, operating within the Aerospace & Defense industry, is a leading manufacturer of aerostructures for commercial and military aircraft. As the largest independent supplier in this sector, Spirit AeroSystems' business is closely tied to major industry players, with Boeing and Airbus being its primary customers. The company's significant exposure to Boeing's 737 program, which represents nearly half of its revenue, is a critical factor in its financial health. This reliance on a single program can be both a strength and a vulnerability, depending on the program's success.
Assessing Profitability
When it comes to profitability, Spirit AeroSystems holds a Profitability Rank of 6/10, which is a moderate score indicating a fair level of profitability within the industry. The company's Operating Margin stands at -9.30%, which, while negative, fares better than 18.64% of 295 companies in the same sector. The Return on Assets (ROA) is currently at -14.15%, and the Return on Invested Capital (ROIC) is at -10.93%, both of which are better than a significant portion of their industry peers. Over the past decade, Spirit AeroSystems has managed to achieve profitability in 6 out of 10 years, which is better than 42.42% of 264 companies in the industry.
Growth Prospects and Industry Ranking
The company's Growth Rank is currently at 3/10, indicating a lower growth trajectory compared to its peers. Spirit AeroSystems has experienced a 3-Year Revenue Growth Rate per Share of -13.80% and a 5-Year Revenue Growth Rate per Share of -9.60%, both of which are better than a small percentage of companies within the industry. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at an optimistic 19.21%, which is higher than 90% of companies in the sector, suggesting potential for future growth.
Significant Shareholders
Notable investors in Spirit AeroSystems include Paul Tudor Jones (Trades, Portfolio), holding 275,411 shares, representing a 0.24% share percentage. Keeley-Teton Advisors, LLC (Trades, Portfolio) owns 165,359 shares, accounting for 0.16% of the shares, while Catherine Wood (Trades, Portfolio) holds 67,802 shares, equating to a 0.06% share percentage. The involvement of these prominent investors underscores the company's appeal to value-oriented shareholders and may influence the stock's performance.
Competitive Landscape
When compared to its competitors, Spirit AeroSystems' market cap of $3.31 billion places it in a competitive position. AeroVironment Inc (AVAV, Financial) has a slightly higher market cap of $3.42 billion, while Rocket Lab USA Inc (RKLB, Financial) and Kratos Defense & Security Solutions Inc (KTOS, Financial) have market caps of $2.44 billion and $2.24 billion, respectively. This comparison highlights Spirit AeroSystems' standing within a tightly contested market segment.
Conclusion
In summary, Spirit AeroSystems Holdings Inc has shown a robust stock performance in recent months, with a 28.98% gain over the past quarter. Despite the GF Valuation suggesting caution with a "Possible Value Trap, Think Twice" rating, the company's market position in the aerospace and defense industry remains strong. The profitability analysis indicates a company that has managed to stay afloat despite challenges, and the projected revenue growth rates offer a glimmer of hope for future expansion. The investments by major holders add a layer of credibility to the stock's potential. Finally, when juxtaposed with its competitors, Spirit AeroSystems demonstrates a competitive market capitalization, which, combined with its recent stock rally, makes it a company worth watching for value investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
