Boeing (BA, Financial) shares rose by 3.16% following a tentative agreement with the International Association of Machinists and Aerospace Workers, potentially resolving a five-week strike that involved 33,000 members. This development suggests a promising path to resuming normal operations and mitigating cash flow issues.
The agreement includes a 35% wage increase over four years, a 4% annual bonus, an improved 401(k) match, and a $7,000 ratification bonus. Pending the approval vote on October 23, this deal is poised to bring Boeing's production back on track, a significant step towards addressing the debt incurred during the pandemic.
From a financial perspective, Boeing's (BA, Financial) current stock price is $159.90 with a market capitalization of $98.53 billion. The company's GF Value is $201.26, which suggests Boeing is modestly undervalued. For further details, visit the GF Value page.
Analyzing the firm's financial health, Boeing shows a concerning Altman Z-score of 1.26, placing it in the distress zone indicating a potential risk of bankruptcy within two years. Furthermore, the company's revenue per share has been declining over the past five years, reflecting challenges in growth.
On the upside, Boeing's Beneish M-Score suggests the company is unlikely to manipulate its financial statements, and the stock's Price-to-Sales (PS) Ratio is near a three-year low of 1.29, indicating potential undervaluation from a valuation perspective.
While Boeing has faced challenges with negative earnings per share (EPS) and significant volatility (41.62%), the positive movement in its stock price today highlights investor optimism towards the resolution of labor disputes and a potential rebound in the company's production capabilities.
