Shares of Airbus (EADSY, Financial) have experienced a decline recently, falling by 2.14% today. This movement is part of a larger trend, as the stock has seen a cumulative decrease over the past days. The recent decline is associated with Delta Air Lines' decision to avoid paying tariffs on aircraft deliveries, as part of the current administration's "reciprocal tariffs" initiative. This decision could pressure Airbus to either absorb these costs or potentially risk losing Delta as a client to Boeing (BA).
In terms of stock analysis, Airbus (EADSY, Financial) is currently priced at $38.41, and according to GuruFocus, it is "Fairly Valued" with a GF Value of $38.25. This valuation suggests the stock is trading near its intrinsic value. You can check the detailed GF Value analysis for Airbus here.
Despite the recent volatility and a Piotroski F-Score of 7 indicating financial strength, Airbus has several warning signs. The company's Altman Z-score of 1.59 places it in the distress zone, indicating possible bankruptcy within two years. Additionally, the ROIC is lower than the WACC, suggesting inefficiencies in capital allocation.
On the positive side, Airbus' operating margin is expanding, and its dividend yield is close to a one-year high, presenting potential upsides for long-term investors. Moreover, the stock's price-to-earnings (PE) ratio is near a two-year low, presenting a potentially attractive entry point for value investors.
