BAE Systems plc (BA.L) stock analysis

In our weekly check, BAE Systems plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 21 pass, warnings: 3, red flags: 1.

About BAE Systems plc

BAE Systems plc is an Industrials company (Aerospace & Defense) based in the United Kingdom, listed on LSE as BA.L.

What our checks show for BA.L

Red flags

• Recovering from its deepest fall took about 3.4 years.

Warning signs

• The net margin fell by 1.7 points over 5 years, to 7.3%: the company keeps less of each sale as profit.
• The net margin is only 7.3%: little room if costs rise.
• The stock has fallen as much as 52% from a peak. Would you have held through that?

Strengths

• Operating cash flow is 1.6x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 16.4% a year over the next years.
• Earnings per share grew 10.6% a year over the last 3 years.
• The dividend takes 37% of profit: there is a cushion.
• A large company: market value $75.57 billion.
• Beta -0.07: the stock usually moves less than the market.

Similar companies

TDG · RHM.DE · LHX · HO.PA · HWM

Questions

What grade does BAE Systems plc (BA.L) have?

In our weekly check, BAE Systems plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 21 pass, warnings: 3, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BA.L stock?

This week's biggest flags for BAE Systems plc: Slow recovery after falls, Margins falling, Thin margins. In total 4 of 25 checks show a warning or a red flag.

What does BAE Systems plc do?

BAE Systems plc is an Industrials company (Aerospace & Defense) based in the United Kingdom, listed on LSE as BA.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis