11/28/12

Company DescriptionSector: Industrials / Industry: Aerospace & Defense

3 Main Divisions: 1. Commercial Airplanes ~ 60% of revenues 2. Defense, Space, and Security ~ 40% of revenues 3. Boeing Capital Corporation < 1% of revenues

Geographic Sales Breakdown: A. US ~ 50% of revenues B. Asia (including China) ~ 18% of revenues C. Europe ~ 14% of revenues

Competitors: Airbus (subsidiary of European Aeronautic Defense and

Space Company) Lockheed Martin (LMT) Northrop Grumman (NOC)

Quick Stats Current Price: $74.09

Market Cap: $55.87B

Enterprise Value: $56.32B

Beta: 1.04

52 Week Price Range: $66.82 - $77.83

Div Yield: 2.40%

Income Statement Statistics:

Revenue (ttm): $78.95B

Quarterly Revenue Growth (YoY): 12.90%

EBITDA (ttm): $7.73B

Profit Margin (ttm): 5.47%

Net Income (ttm): $4.31B

Valuation Statistics:

Trailing Price / Earnings Ratio: 13.05

Forward Price / Earnings Ratio: 14.56

5 Yr Growth Estimate: 11.90%

Prices / Sales Ratio: 0.71

Price / Book Ratio: 15.66

Enterprise Value / EBITDA: 7.28

Balance Sheet

Cash: $11.12B

Debt: $11.19B

Investment Thesis1. Beginning to Ride the Powerful Aerospace Cycle

2. Recent Earning Have Been Stellar and Stock Still Cheap Because of Over-Heightened Defense Spending Cut Headwinds

3. Huge Backlog and Solid and Increasing Dividend Makes Boeing a Safe Play

Boeing Regaining Market Share

Boeing’s Impressive Airplane Deliveries

Stellar Earnings Outpacing Estimates

Boeing’s Huge Backlog

Backlog stands at $378 billion including 4,100 unfilled commercial airplane orders

Would take over 7 years to clear this backlog out!

Steadily Increasing Dividend

Current Dividend = 2.40%

Industry/Peer Analysis

Risks1. Expected Defense Cuts in Washington

However…A. Implemented cost cuttingB. 25% of DSS revenues are international

2. Expenses Tied to Fuel CostsHuge operating expense ~ 1/3 of total expenses

3. Pension and Health Care BenefitsCurrently have ~ $24 billion in accrued liabilities

Conclusion/Price TargetBoeing will continue to blow out earnings,

pushing the P/E ratio down, until the stock becomes too cheap that the price will have to go up

12 month price target of $90, representing a 21% gain