Spirit AeroSystems Holdings Inc (SPR, Financial) has recently experienced a notable uptick in its stock performance. With a market capitalization of $4.09 billion and a current price of $35.22, the company has seen an impressive 11.56% gain over the past week and a 13.47% gain over the past three months. This positive trend is further supported by the GF Value, which currently stands at $43.7, indicating that the stock is modestly undervalued compared to its past GF Value of $44.44. This shift from a possible value trap to a more favorable valuation suggests that investors may want to consider Spirit AeroSystems as a potential addition to their portfolios.
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, the company boasts a significant relationship with Boeing, with the 737 program alone accounting for nearly half of its revenue. This high exposure to Boeing's 737 program underscores the company's importance in the aerospace supply chain. 
Assessing Spirit AeroSystems' Profitability
Spirit AeroSystems' Profitability Rank stands at 6/10, reflecting a stable position within the industry. The company's Operating Margin of -2.72% is better than 25.08% of its industry peers, while its ROA of -9.26% and ROIC of -3.68% also outperform a significant portion of the industry. Over the past decade, Spirit AeroSystems has maintained profitability for six years, surpassing 42.32% of industry competitors. These figures suggest a competitive edge in operational efficiency and investment returns relative to many of its peers. 
Growth Trajectory of Spirit AeroSystems
The company's Growth Rank is a robust 7/10. Spirit AeroSystems has demonstrated a 20.10% 3-Year Revenue Growth Rate per Share, outperforming 83.83% of the industry. Although the 5-Year Revenue Growth Rate per Share shows a decline of -5.50%, it still fares better than 24.58% of the industry. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 15.61%, which is more promising than 87.93% of industry forecasts. Additionally, the 3-Year EPS without NRI Growth Rate stands at 18.20%, surpassing 65.92% of the industry. These growth metrics indicate a strong potential for future expansion and profitability. 
Notable Shareholders in Spirit AeroSystems
Prominent investors have taken positions in Spirit AeroSystems, signaling confidence in the company's prospects. Steven Cohen (Trades, Portfolio) leads as the top holder with 1,349,420 shares, representing 1.16% of 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% stake. The involvement of these seasoned investors may be seen as a testament to the company's potential and strategic direction.
Competitive Landscape
When compared to its competitors, Spirit AeroSystems holds its ground with a market cap close to that of AeroVironment Inc (AVAV, Financial) at $4.18 billion, and surpassing Kratos Defense & Security Solutions Inc (KTOS, Financial) and AAR Corp (AIR, Financial), which have market caps of $2.57 billion and $2.25 billion, respectively. This proximity in market capitalization among these companies within the Aerospace & Defense industry highlights the competitive environment in which Spirit AeroSystems operates.
Conclusion
In summary, Spirit AeroSystems Holdings Inc's recent stock performance and valuation suggest a positive outlook for the company. Its market position as a key supplier to major aircraft manufacturers, coupled with a favorable GF Value, positions it as an attractive option for investors. The company's profitability and growth metrics indicate resilience and potential for future success. The confidence shown by significant holders further bolsters the investment case for Spirit AeroSystems. When juxtaposed with its competitors, the company's market cap indicates that it is a formidable player in the Aerospace & Defense industry, worthy of investor consideration.
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.
