Aerospace & Defense Industry Report
Market Cap: $560.2B
Stocks: 33
Median P/E: 27.5x
Median ROIC: 6.4%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
Part of the Industrials sector.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | +0.9% | -0.5% |
| 1 Week | -1.4% | +0.0% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +4.1% | +2.1% |
| 1 Year | +25.2% | +21.9% |
| 3 Years | +65.2% | +32.6% |
| 5 Years | +63.1% | +23.2% |
Today's Breadth: 8 advancing · 13 declining · 2 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 27.5x | 0.0x | 63.5x | +98% |
| P/B | 2.3x | 0.8x | 7.5x | +7% |
| P/S | 1.2x | 0.2x | 2.4x | — |
| P/FCF | 20.2x | 5.9x | 44.0x | — |
| EV/EBITDA | 23.5x | 13.1x | 28.5x | — |
| EV/EBIT | 24.5x | 18.8x | 30.2x | — |
Earnings Yield
2.0%
FCF Yield
0.2%
Below Fair Value
22% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 27.7% | 25.9% | 18.8% | 36.2% |
| Operating Margin | 7.2% | — | 2.5% | 10.4% |
| Net Margin | 3.5% | 4.8% | -0.1% | 6.7% |
| FCF Margin | 5.0% | — | -2.1% | 7.7% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 3.5% | — | -23.4% | 9.8% |
| ROA | 2.2% | — | -2.8% | 4.4% |
| ROIC | 6.4% | 4.8% | -2.6% | 15.5% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +12.1% | +12.1% | +8.2% |
| EPS | +28.1% | -10.9% | -1.9% |
| Free Cash Flow | +10.9% | +3.3% | +7.6% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.5x
Net Debt / EBITDA
1.4x
Interest Coverage
2.6x
Current Ratio
1.7x
Altman Z-Score
Safe (>3): 12 (38%)
Gray (1.8–3): 6 (19%)
Distress (<1.8): 14 (44%)
Piotroski F-Score
Strong (7–9): 3 (9%)
Moderate (4–6): 18 (55%)
Weak (0–3): 12 (36%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| BA | 1 | $169.3B | 87.3x | 31.8x | 13.3% | 2.1% | +34.5% | 0.2% | +3.0% | 1/9 |
| RR-L | 2 | $106.8B | 17.0x | 24.3x | 26.4% | 27.5% | +15.7% | 0.9% | — | 4/9 |
| TDG | 3 | $71.7B | 40.4x | 23.6x | 22.8% | 21.1% | +11.2% | 12.8% | +0.5% | 4/9 |
| BA-L | 4 | $67.7B | 17.7x | 10.4x | 14.4% | 7.4% | +16.9% | 3.0% | — | 4/9 |
| ESLT | 5 | $43.9B | — | — | 17.6% | 6.7% | +16.3% | — | +17.1% | 3/9 |
| AXON | 6 | $29.7B | 386.6x | — | 3.4% | 4.5% | +33.5% | — | 0.0% | 2/9 |
| KRMN | 7 | $13.9B | — | — | 15.3% | 3.7% | +23.0% | — | +5.1% | 1/9 |
| EMBJ | 8 | $12.4B | — | — | 26.6% | 5.5% | +11.3% | — | +3.3% | 0/9 |
| JOBY | 9 | $7.0B | — | — | -79.7% | — | — | — | +1.9% | 0/9 |
| LOAR | 10 | $6.4B | 92.1x | 60.9x | 6.4% | 14.5% | +23.2% | — | +4.6% | 2/9 |
| AVAV | 11 | $5.5B | 96.6x | 51.0x | 5.1% | 5.3% | +14.5% | — | +4.2% | 1/9 |
| ACHR | 12 | $3.4B | — | — | -39.9% | — | — | — | — | 0/9 |
| POWWP | 13 | $2.9B | — | — | -60.3% | — | — | 0.1% | -0.3% | 1/9 |
| ATRO | 14 | $2.7B | 68.4x | 23.5x | 15.8% | 3.4% | +8.4% | — | +1.3% | 1/9 |
| QQ-L | 15 | $2.7B | -13.6x | — | -6.7% | -9.6% | +4.2% | 2.0% | — | 2/9 |
| ATROB | 16 | $2.7B | 68.5x | 23.5x | 15.8% | 3.4% | +8.4% | — | +9.1% | 1/9 |
| DCO | 17 | $2.1B | — | — | -3.6% | -4.1% | +4.8% | — | +12.8% | 1/9 |
| EXA-PA | 18 | $2.1B | -78.0x | 30.0x | 3.5% | -1.0% | +15.0% | 1.9% | — | 1/9 |
| CHG-L | 19 | $1.5B | 27.5x | 18.8x | 13.1% | 9.7% | +5.1% | 1.7% | — | 4/9 |
| SNR-L | 20 | $1.2B | -198.5x | 18.6x | 6.7% | -0.6% | +7.7% | 1.3% | — | 3/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Aircraft | 7 | $197.6B | 35.3% | |
| Aerospace & Defense | 9 | $183.3B | 32.7% | |
| Aircraft Parts & Auxiliary Equipment, Nec | 10 | $144.1B | 25.7% | |
| Ordnance & Accessories, (No Vehicles/Guided Missiles) | 7 | $35.3B | 6.3% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
0%
Median Piotroski F
4/9
Profitable Years
4 of 10
Dividends & Shareholder Returns
Paying Dividends
48%
Median Div Yield
1.8%
Median Buyback Yield
0.4%
Shareholder Yield
1.8%
Payout Ratio
33.6%
Div Growth (3Y)
5.1%
Div Growth (5Y)
-12.0%
Strengths & Weaknesses
Strengths
No notable strengths identified.
Weaknesses
- −[Financial Health]43.8% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at 2.6x, leaving limited cushion for debt servicing if earnings decline.
- −[Quality]Only 0.0% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.
- −[Shareholder Dilution]Revenue growth of 8.2% significantly outpaces EPS growth of -1.9% over 5 years, suggesting margin compression or shareholder dilution.