Spirit Aerosystems Holdings (SPR) Technical and Fundamental Analysis

Spirit Aerosystems Holdings

Spirit AeroSystems is a company that manufactures aero structures for aircrafts. The company is contracted with both commercial and defense customers, and has a foothold in the industry. It has grown to be one of the world’s largest manufacturers thanks to its massive contract with Boeing. Demand for new planes has grown rapidly in recent years, with countries in the Middle East and India requesting hundreds of new planes. This has helped boost revenue steadily quarter over quarter in the last year for SPR. Unfortunately, net profits have remained negative so the company is currently operating at a negative price to earnings ratio, but with the right leadership and continuous revenue growth, SPR is a contender for profitability not too long from now. Their balance sheet is at a 1:1 ratio, which places them in the “high risk high reward” investment grade. As of now, SPR is in a position to really make its market for the next 12-24 months. Their balance sheet and cash flow need work, but with the growing revenue, we expect it to organically move into healthier territory.