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Boeing stock analysis. Ticker: $BA

Boeing reported earnings on Wednesday but it wasn’t enough to help the stock which is down 62% since its 2019 peak. At the latest price,the company has a market cap of 103 billion dollars. With 7.5 billion of cash and 57 billion of debt the enterprise value is 152 billion.

Revenue over the last 12 months comes to 76 billion with 1.3 billion of free cash flow. But operating margins have fallen to 1% and net income is negative 2.2 billion. In fact, the company hasn’t reported a full year of profit since 2018.

Despite the weak fundamentals, investors need to consider whether the worst might be over.

Boeing has slowed down production and developed so-called shadow factories in order to fix planes and improve safety. CEO David Calhoun said the company is putting more hours into reworking planes that it did in building them in the first place.

But he also said these extra costs are coming to an end. The shadow factories will be closed by the end of the year and that will provide a significant boost to the bottom line.

Meanwhile, Boeing’s customers aren’t going anywhere. The company received 125 orders in the latest quarter, mostly from American Airlines and Boeing’s total commercial backlog is now $448 billion dollars. That’s more than 5600 airplanes.