Stock in Action: Spirit AeroSystems Holdings, Inc. (SPR)

Company Profile:

Spirit AeroSystems Holdings, Inc. is a non-original equipment manufacturer (OEM) aircraft parts designer and manufacturer of commercial aero-structures. The Company is a supplier of aero-structures to The Boeing Company (Boeing) and Airbus S.A.S (Airbus). The Company operates through three segments: Fuselage Systems, Propulsion Systems and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs); and offers related spares, as well as maintenance, repairs, and overhaul (MRO) services. This segment also provides rotorcraft, including forward cockpits and cabins. The Propulsion Systems segment offers struts/pylons; nacelles, such as thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as related spares and MRO services. The Wing Systems segment provides wings and wing components comprising flight control surfaces; and other miscellaneous structural parts primarily to aircraft OEMs, as well as related spares and MRO services. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.

Recent News:

Spirit AeroSystems Inc. Chief Executive Officer Larry Lawson will speak at the Bernstein Strategic Decisions Conference in New York, N.Y. , Thursday, June 2, 2016 , at 2:00 p.m. (EDT) .

On May 24, 2016, the company entered into an Underwriting Agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC as representatives of the several underwriters identified therein, pursuant to which Spirit agreed to sell and the Underwriters agreed to purchase $300 million aggregate principal amount of 3.850% Senior Notes due 2026.

The company reported first-quarter net income of $171.6 million. On a per-share basis, the company said it had profit of $1.29. It posted revenue of $1.68 billion in the period and expected full-year earnings to be $4.15 to $4.35 per share, with revenue in the range of $6.6 billion to $6.7 billion.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SPR’s strengths can be seen in its strong profitability. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 54.12. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Spirit AeroSystems Holdings, Inc. (SPR) a STRONG BUY.