Spirit AeroSystems Holdings Inc (SPR, Financial) has recently experienced a notable uptick in its stock performance. With a current market capitalization of $3.83 billion, the stock price stands at $32.98, reflecting a 12.75% gain over the past week and a 17.07% gain over the past three months. This positive trajectory is further underscored by the company's GF Value of $43.45, suggesting that the stock is modestly undervalued compared to its past GF Value of $44.44. Previously, the stock was considered a possible value trap, but the recent gains indicate a shift in investor sentiment.
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, the company's primary customers include giants like Boeing and Airbus, with Boeing accounting for approximately 60% of its revenue. 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. 
Assessing Spirit AeroSystems' Profitability
Spirit AeroSystems' Profitability Rank stands at 6/10, indicating a moderate level of profitability within the industry. The company's operating margin is currently at -2.72%, which is better than 24.67% of 300 companies in the same sector. Its ROA is -9.26%, surpassing 18.12% of its peers, and the ROIC is -3.68%, which is more favorable than 22.98% of the competition. Over the past decade, Spirit AeroSystems has managed to achieve profitability in 6 out of 10 years, which is better than 42.48% of 266 companies in the industry. 
Growth Prospects of Spirit AeroSystems
The company's Growth Rank is 7/10, reflecting a strong growth potential. Spirit AeroSystems has seen a 20.10% 3-Year Revenue Growth Rate per Share, outperforming 83.4% of 265 companies in the same industry. However, its 5-Year Revenue Growth Rate per Share is -5.50%, which is still better than 26.05% of 238 companies. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 15.61%, which is more optimistic than 86.67% of 60 companies. The 3-Year EPS without NRI Growth Rate stands at 18.20%, surpassing 65.75% of 219 companies. 
Notable Shareholders in Spirit AeroSystems
Among the notable shareholders of Spirit AeroSystems, Steven Cohen (Trades, Portfolio) leads the pack with 1,349,420 shares, representing a 1.16% stake in the company. Following him are Paul Tudor Jones (Trades, Portfolio) and Charles Brandes (Trades, Portfolio), holding 327,367 and 327,005 shares, respectively, each with a 0.28% share percentage. These prominent investors' involvement provides a layer of confidence in the company's future prospects.
Competitive Landscape
In comparison to its competitors, Spirit AeroSystems holds a competitive position with a market cap of $3.83 billion. AeroVironment Inc (AVAV, Financial) closely trails with a market cap of $3.62 billion, followed by Kratos Defense & Security Solutions Inc (KTOS, Financial) at $2.69 billion, and AAR Corp (AIR, Financial) at $2.37 billion. This competitive landscape highlights the robust nature of the Aerospace & Defense industry and the need for Spirit AeroSystems to maintain its growth and profitability to stay ahead.
Conclusion
In summary, Spirit AeroSystems Holdings Inc's recent stock performance and valuation suggest a positive outlook for the company. Its current position as a modestly undervalued stock, according to GF Value, combined with its solid market position and business outlook, presents an attractive opportunity for investors. The company's profitability and growth prospects, despite some challenges, appear promising. Moreover, the presence of high-profile investors and a competitive market cap compared to its peers further bolster the case for Spirit AeroSystems as a potential investment. As the Aerospace & Defense industry continues to evolve, Spirit AeroSystems' strategic focus on growth and profitability will be crucial in maintaining its upward trajectory.
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.
