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BAE Systems

DB:BSP
Snowflake Description

Outstanding track record 6 star dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BSP
DB
£18B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The last earnings update was 74 days ago. More info.


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BSP Share Price and Events
7 Day Returns
1.5%
DB:BSP
0.8%
Europe Aerospace & Defense
2.8%
DE Market
1 Year Returns
-6.9%
DB:BSP
11.7%
Europe Aerospace & Defense
3%
DE Market
BSP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BAE Systems (BSP) 1.5% -2% 8.6% -6.9% 3% 11.4%
Europe Aerospace & Defense 0.8% -3.8% 0.9% 11.7% 67.1% 114.9%
DE Market 2.8% 0.2% 1.3% 3% 8% 23.6%
1 Year Return vs Industry and Market
  • BSP underperformed the Aerospace & Defense industry which returned 11.7% over the past year.
  • BSP underperformed the Market in Germany which returned 3% over the past year.
Price Volatility
BSP
Industry
5yr Volatility vs Market

BSP Value

 Is BAE Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of BAE Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for BAE Systems.

DB:BSP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:BSP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 19%) (28.12%))
1.041
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.041 * 6.65%)
7.15%

Discounted Cash Flow Calculation for DB:BSP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for BAE Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:BSP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.15%)
2020 1,101.33 Analyst x12 1,027.85
2021 1,335.44 Analyst x9 1,163.20
2022 1,539.00 Analyst x5 1,251.07
2023 1,940.00 Analyst x1 1,471.84
2024 2,191.21 Est @ 12.95% 1,551.52
2025 2,391.33 Est @ 9.13% 1,580.26
2026 2,545.84 Est @ 6.46% 1,570.13
2027 2,662.73 Est @ 4.59% 1,532.66
2028 2,750.13 Est @ 3.28% 1,477.36
2029 2,815.19 Est @ 2.37% 1,411.42
Present value of next 10 years cash flows £14,037.00
DB:BSP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £2,815.19 × (1 + 0.23%) ÷ (7.15% – 0.23%)
£40,773.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £40,773.14 ÷ (1 + 7.15%)10
£20,441.95
DB:BSP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £14,037.00 + £20,441.95
£34,478.95
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £34,478.95 / 3,202.31
£10.77
DB:BSP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:BSP represents 1.11834x of LSE:BA.
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.11834x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 10.77 x 1.11834
€12.04
Value per share (EUR) From above. €12.04
Current discount Discount to share price of €6.22
= -1 x (€6.22 - €12.04) / €12.04
48.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price BAE Systems is available for.
Intrinsic value
48%
Share price is €6.22 vs Future cash flow value of €12.04
Current Discount Checks
For BAE Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • BAE Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • BAE Systems's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for BAE Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BAE Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:BSP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £0.42
LSE:BA. Share Price ** LSE (2019-10-11) in GBP £5.56
Europe Aerospace & Defense Industry PE Ratio Median Figure of 36 Publicly-Listed Aerospace & Defense Companies 21.4x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of BAE Systems.

DB:BSP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:BA. Share Price ÷ EPS (both in GBP)

= 5.56 ÷ 0.42

13.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BAE Systems is good value based on earnings compared to the Europe Aerospace & Defense industry average.
  • BAE Systems is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does BAE Systems's expected growth come at a high price?
Raw Data
DB:BSP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
5.6%per year
Europe Aerospace & Defense Industry PEG Ratio Median Figure of 26 Publicly-Listed Aerospace & Defense Companies 1.59x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:BSP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.38x ÷ 5.6%

2.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BAE Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on BAE Systems's assets?
Raw Data
DB:BSP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £1.71
LSE:BA. Share Price * LSE (2019-10-11) in GBP £5.56
Europe Aerospace & Defense Industry PB Ratio Median Figure of 49 Publicly-Listed Aerospace & Defense Companies 1.96x
Germany Market PB Ratio Median Figure of 598 Publicly-Listed Companies 1.74x
DB:BSP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:BA. Share Price ÷ Book Value per Share (both in GBP)

= 5.56 ÷ 1.71

3.26x

* Primary Listing of BAE Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BAE Systems is overvalued based on assets compared to the Europe Aerospace & Defense industry average.
X
Value checks
We assess BAE Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. BAE Systems has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BSP Future Performance

 How is BAE Systems expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BAE Systems expected to grow at an attractive rate?
  • BAE Systems's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • BAE Systems's earnings growth is positive but not above the Germany market average.
  • BAE Systems's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:BSP Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:BSP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 5.6%
DB:BSP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 4.5%
Europe Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 14.2%
Europe Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:BSP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:BSP Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 23,110 2,512 1
2022-12-31 22,724 2,183 1,589 6
2021-12-31 21,972 1,950 1,451 11
2020-12-31 21,103 1,622 1,339 12
2019-12-31 20,040 1,390 1,320 12
2019-10-13
DB:BSP Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 17,334 1,365 1,324
2019-03-31 17,078 1,283 1,162
2018-12-31 16,821 1,200 1,000
2018-09-30 16,646 1,180 865
2018-06-30 16,470 1,159 729
2018-03-31 16,847 1,528 778
2017-12-31 17,224 1,897 827
2017-09-30 18,326 1,695 971
2017-06-30 18,427 1,493 1,074
2017-03-31 18,109 1,361 994
2016-12-31 17,790 1,229 913
2016-09-30 17,427 1,265 925

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BAE Systems's earnings are expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
  • BAE Systems's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:BSP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from BAE Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BSP Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.49 0.51 0.47 2.00
2021-12-31 0.45 0.48 0.42 5.00
2020-12-31 0.41 0.45 0.38 5.00
2019-12-31 0.43 0.47 0.37 5.00
2019-10-13
DB:BSP Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 0.42
2019-03-31 0.36
2018-12-31 0.31
2018-09-30 0.27
2018-06-30 0.23
2018-03-31 0.24
2017-12-31 0.26
2017-09-30 0.31
2017-06-30 0.34
2017-03-31 0.31
2016-12-31 0.29
2016-09-30 0.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • BAE Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess BAE Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
BAE Systems has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BSP Past Performance

  How has BAE Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare BAE Systems's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • BAE Systems's year on year earnings growth rate has been positive over the past 5 years.
  • BAE Systems's 1-year earnings growth exceeds its 5-year average (81.6% vs 12.7%)
  • BAE Systems's earnings growth has exceeded the Europe Aerospace & Defense industry average in the past year (81.6% vs 16.4%).
Earnings and Revenue History
BAE Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from BAE Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BSP Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 17,334.00 1,324.00 6,209.00
2019-03-31 17,077.50 1,162.00 6,206.00
2018-12-31 16,821.00 1,000.00 6,203.00
2018-09-30 16,645.50 864.50 6,200.00
2018-06-30 16,470.00 729.00 6,197.00
2018-03-31 16,847.00 778.00 6,213.00
2017-12-31 17,224.00 827.00 6,229.00
2017-09-30 18,326.00 971.00 6,032.50
2017-06-30 18,427.00 1,074.00 5,836.00
2017-03-31 18,108.50 993.50 5,837.00
2016-12-31 17,790.00 913.00 5,838.00
2016-09-30 17,427.00 924.50 5,514.50
2016-06-30 17,064.00 936.00 5,191.00
2016-03-31 16,925.50 927.00 5,195.50
2015-12-31 16,787.00 918.00 5,200.00
2015-09-30 16,548.00 809.50 5,087.50
2015-06-30 16,309.00 701.00 4,975.00
2015-03-31 15,869.50 720.50 4,967.50
2014-12-31 15,430.00 740.00 4,960.00
2014-09-30 15,712.50 463.00 5,080.50
2014-06-30 15,995.00 186.00 5,201.00
2014-03-31 16,429.50 177.00 5,210.00
2013-12-31 16,864.00 168.00 5,219.00
2013-09-30 16,854.50 556.00 5,341.50
2013-06-30 16,845.00 944.00 5,464.00
2013-03-31 16,768.00 946.00 5,462.50
2012-12-31 16,691.00 948.00 5,461.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • BAE Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • BAE Systems used its assets more efficiently than the Europe Aerospace & Defense industry average last year based on Return on Assets.
  • BAE Systems has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess BAE Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
BAE Systems has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BSP Health

 How is BAE Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up BAE Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • BAE Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • BAE Systems's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of BAE Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from BAE Systems Company Filings, last reported 3 months ago.

DB:BSP Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 5,514.00 3,520.00 1,637.00
2019-03-31 5,514.00 3,520.00 1,637.00
2018-12-31 5,618.00 4,319.00 3,319.00
2018-09-30 5,618.00 4,319.00 3,319.00
2018-06-30 5,870.00 4,159.00 2,275.00
2018-03-31 5,870.00 4,159.00 2,275.00
2017-12-31 4,755.00 4,158.00 3,283.00
2017-09-30 4,784.00 4,158.00 3,283.00
2017-06-30 3,479.00 4,234.00 2,532.00
2017-03-31 3,479.00 4,234.00 2,532.00
2016-12-31 3,464.00 4,453.00 2,822.00
2016-09-30 3,464.00 4,453.00 2,822.00
2016-06-30 2,577.00 4,390.00 2,476.00
2016-03-31 2,577.00 4,390.00 2,476.00
2015-12-31 3,002.00 4,019.00 2,595.00
2015-09-30 3,002.00 4,019.00 2,595.00
2015-06-30 2,143.00 3,335.00 1,435.00
2015-03-31 2,143.00 3,335.00 1,435.00
2014-12-31 1,877.00 3,360.00 2,313.00
2014-09-30 1,877.00 3,360.00 2,313.00
2014-06-30 2,776.00 2,559.00 1,448.00
2014-03-31 2,776.00 2,559.00 1,448.00
2013-12-31 3,418.00 2,952.00 2,237.00
2013-09-30 3,418.00 2,952.00 2,237.00
2013-06-30 4,226.00 3,147.00 2,010.00
2013-03-31 4,226.00 3,147.00 2,010.00
2012-12-31 3,774.00 3,018.00 3,387.00
  • BAE Systems's level of debt (63.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (92.8% vs 63.8% today).
  • Debt is well covered by operating cash flow (38.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).
X
Financial health checks
We assess BAE Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. BAE Systems has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BSP Dividends

 What is BAE Systems's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.99%
Current annual income from BAE Systems dividends. Estimated to be 4.39% next year.
If you bought €2,000 of BAE Systems shares you are expected to receive €80 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • BAE Systems's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • BAE Systems's dividend is above the markets top 25% of dividend payers in Germany (3.86%).
Upcoming dividend payment

Purchase BAE Systems before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:BSP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Europe Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 1.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:BSP Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.25 1.00
2022-12-31 0.26 8.00
2021-12-31 0.25 16.00
2020-12-31 0.24 17.00
2019-12-31 0.23 17.00
2019-10-13
DB:BSP Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-27 0.222 4.336
2019-02-21 0.222 4.708
2018-02-23 0.218 3.820
2017-03-28 0.213 3.531
2017-02-23 0.213 3.329
2016-02-29 0.209 3.892
2016-01-15 0.209 4.222
2015-03-18 0.205 4.266
2015-02-19 0.205 3.838
2014-07-31 0.203 4.371
2014-03-20 0.201 4.848
2014-02-20 0.201 4.931
2013-08-01 0.197 4.481
2013-02-21 0.195 4.958
2012-02-16 0.188 6.016
2012-02-15 0.188 5.713
2011-02-17 0.175 5.896
2011-02-16 0.175 5.027
2010-02-18 0.160 4.717
2010-02-17 0.160 4.490
2010-02-15 0.151 4.372
2009-02-19 0.145 4.280

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of BAE Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess BAE Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can BAE Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BAE Systems has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BSP Management

 What is the CEO of BAE Systems's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Charles Woodburn
COMPENSATION £2,416,000
AGE 47
TENURE AS CEO 2.3 years
CEO Bio

Dr. Charles Woodburn has been the Group Chief Executive of BAE Systems plc since July 1, 2017 and as its Executive Director since May 9, 2016. Dr. Woodburn served as the Chief Operating Officer of BAE Systems plc from May 9, 2016 to July 1, 2017. Dr. Woodburn served as the Chief Operating Officer of BAE Systems plc since May 9, 2016 until July 1, 2017. Dr. Woodburn has over 20 years' international experience from the oil and gas industry gained in a number of senior management positions. Before joining BAE Systems, he was Chief Executive Officer of Expro Group. During a 15-year career with Schlumberger, he held a number of senior management positions in the Far East, Australia, France and the United States. Dr. Woodburn holds a First Class Honours Degree in Electrical Sciences and a PhD in Engineering from Cambridge University. Dr. Woodburn later completed an MBA at Erasmus University, Rotterdam.

CEO Compensation
  • Charles's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Charles's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the BAE Systems management team in years:

2
Average Tenure
59
Average Age
  • The tenure for the BAE Systems management team is about average.
Management Team

Charles Woodburn

TITLE
Group CEO & Executive Director
COMPENSATION
£2M
AGE
47
TENURE
2.3 yrs

Peter Lynas

TITLE
Group Finance Director & Executive Director
COMPENSATION
£2M
TENURE
8.5 yrs

Jerry DeMuro

TITLE
Executive Director & CEO of BAE Systems
COMPENSATION
£3M
AGE
63

Nigel Whitehead

TITLE
Chief Technology Officer
AGE
56
TENURE
1.8 yrs

Martin Cooper

TITLE
Investor Relations Director

Philip Bramwell

TITLE
Group General Counsel
AGE
62
TENURE
12.8 yrs

Mark Phillips

TITLE
Group Communications Director
TENURE
0.8 yrs

Neils Petersen

TITLE
Chief of Staff and Executive Vice President of Marketing Operations

Karin Hoeing

TITLE
Group Human Resources Director
TENURE
1.7 yrs

Rolf Rue

TITLE
Regional Managing Director of New Strategic Markets
Board of Directors Tenure

Average tenure and age of the BAE Systems board of directors in years:

6.6
Average Tenure
62.5
Average Age
  • The tenure for the BAE Systems board of directors is about average.
Board of Directors

Roger Carr

TITLE
Chairman
COMPENSATION
£700K
AGE
72
TENURE
5.7 yrs

Charles Woodburn

TITLE
Group CEO & Executive Director
COMPENSATION
£2M
AGE
47
TENURE
3.4 yrs

Peter Lynas

TITLE
Group Finance Director & Executive Director
COMPENSATION
£2M
TENURE
8.5 yrs

Jerry DeMuro

TITLE
Executive Director & CEO of BAE Systems
COMPENSATION
£3M
AGE
63
TENURE
5.7 yrs

Michael Chertoff

TITLE
Chairman of BAE Systems
AGE
65

Michael Rouse

TITLE
Group Marketing Director and Director of BAE Systems Inc
AGE
71

Nick Rose

TITLE
Senior Independent Director
COMPENSATION
£140K
AGE
61
TENURE
6.8 yrs

Paula G. Reynolds

TITLE
Independent Non-Executive Director
COMPENSATION
£141K
AGE
62
TENURE
8.5 yrs

Earl Cairns

TITLE
Chairman of Advisory Board on Tanzania
TENURE
8.3 yrs

Ian Tyler

TITLE
Independent Non-Executive Director
COMPENSATION
£117K
AGE
59
TENURE
6.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess BAE Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. BAE Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BSP News

Simply Wall St News

BSP Company Info

Description

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Air, and Maritime. The Electronic Systems segment offers electronic warfare systems and electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance systems, and hybrid electric drive systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for C4ISR systems and enterprise IT networks; and solutions to enhance the collection, analysis, and processing of data across the US civilian and military intelligence communities. It also offers data intelligence solutions to defend against national-scale threats, protect their networks, data against attacks; security and intelligence solutions to the UK government and allied international governments; anti-fraud and regulatory compliance solutions; and security advisory and managed security services. The Platforms & Services (US) segment manufactures combat vehicles, weapons, and munitions, as well as provides ship repair services and the management of government-owned munitions facilities. The Air segment develops, manufactures, upgrades, and supports combat and jet trainer aircraft. The Maritime segment designs, manufactures, and supports surface ships, submarines, torpedoes, radars, and command and combat systems. It also supplies naval gun system; and provides ammunitions, precision munitions, artillery systems, and missile launchers. BAE Systems plc was incorporated in 1979 and is based in London, the United Kingdom.

Details
Name: BAE Systems plc
BSP
Exchange: DB
Founded: 1979
£20,437,272,914
3,202,305,156
Website: http://www.baesystems.com
Address: BAE Systems plc
6 Carlton Gardens,
London,
Greater London, SW1Y 5AD,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE BA. Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK BAES.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB BSP Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BMV BA1 N Ordinary Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
BATS-CHIXE BAL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK BAES.Y SPONSORED ADR Pink Sheets LLC US USD 03. Nov 1998
Number of employees
Current staff
Staff numbers
87,300
BAE Systems employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 20:56
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/11
Last earnings filing: 2019/07/31
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.