SWKS – Market expectations are for Uniform ROA to compress, but management is confident about technological leadership and guidance
- The Boeing Company (SWKS) currently trades below corporate but near historical averages relative to Uniform earnings, with a 14.4x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to compress to 17%, accompanied by 5% Uniform asset growth.
- Meanwhile, analysts expect Uniform ROA to fade to 28% in 2023, accompanied by 7% Uniform asset growth.
- If sustained going forward, these levels would imply a stock price closer to $263, representing significant potential equity upside for the firm.
- Moreover, the firm’s most recent earnings call suggests management is confident about technological leadership and guidance.