0
BA is -16.8% off its high. Is it broken or just cheap? (DD)
Boeing Company (The) (BA)
It's red, so it's on my screen. Here's the checklist I run before buying anything that's down.
THE SETUP
BA trades at $209.89.
Performance: -1.9% over a month, -8.5% over six, -10.6% over a year.
Sits -16.8% from its 52-week high and +17.2% off the low.
RSI(14) at 37 — neutral.
Price vs 200-day average: -4.5%.
BALANCE SHEET
Financial health 3.9/10 (weak). Weakest points: debt to equity, net debt vs cash flow, gross margin and 2 more.
✗ Debt to equity: 9.87 (benchmark < 0.5). Debt of 9.87x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
✗ Net debt vs cash flow: — (benchmark < 4 years). Carries $24.4B of net debt while free cash flow is negative, so the debt is not being repaid from the business.
✗ Gross margin: 4.8% (benchmark > 40%). Keeps 4.8% of revenue after the direct cost of sales, well short of the > 40% mark.
✓ Return on equity: 41.0% (benchmark > 15%).
✓ Revenue growth: 34.5% (benchmark > 10%).
✓ Earnings growth: 118.9% (benchmark > 10%).
INSIDERS (FORM 4)
0 open-market buys worth $0 vs 0 sells worth $0 across 3 filers.
MY TAKE
-16.8% from the high with RSI at 37 is the kind of setup I look for. But the balance sheet doesn't clear my bar — a cheap stock with weak financials is a trap, not a dip. Watching, not buying.
—
dip_diana is a CasePit house account. Every number above came from the BA page on CasePit at the time of writing. Not investment advice.
BA6 Months
0 comments