Capital Intensity
Score how much of a company is physical plant, inventory, and equipment, whether that base is being maintained, and whether the shares have tangible backing.
BAE Systems PLC
Physical assets are 21.7% of total assets, a light footprint. Capex is 0.79x depreciation while free cash flow yield is positive, which can mean an aging base that is still throwing off cash. ROIC is 13.0%, above an 8% cost-of-capital hurdle.
Energy, materials, and industrial names often turn net PP&E at about 1x to 3x. This name is at 4.18x.
Physical asset ratio
21.7%
Net PP&E plus inventory, divided by total assets. Above 50% is a heavy footprint.
Fixed asset turnover
4.18x
Revenue per dollar of the physical asset base.
Capex / D&A
0.79x
Above 1.0x means the physical base is being replaced or expanded.
Tangible book / share
-$4.36
Assets minus goodwill, intangibles, and liabilities, per share.
Price / tangible book
—
Price $105.88.
Fixed-charge coverage
4.62x
EBITDA minus capex, divided by interest plus short-term debt.
FCF yield
3.2%
Latest free cash flow divided by current market cap ($73.05B).
ROIC
13.0%
After-tax operating income over equity plus debt minus cash.
Operating income / net PP&E is 0.38x.
Footprint and return
Turnover and reinvestment
| Year | Physical | FAT | Capex/D&A | TBV/sh | Coverage | FCF | ROIC | EBIT/PP&E |
|---|---|---|---|---|---|---|---|---|
| 2018 | 12.7% | 7.11x | 1.42x | -$6.31 | 1.27x | $703.00M | 20.5% | 0.68x |
| 2019 | 17.2% | 5.12x | 0.77x | -$6.07 | 2.92x | $1.13B | 23.6% | 0.53x |
| 2020 | 16.6% | 5.20x | 0.71x | -$8.50 | 2.70x | $689.00M | 19.4% | 0.52x |
| 2021 | 17.5% | 4.95x | 0.66x | -$5.04 | 3.45x | $1.99B | 20.3% | 0.61x |
| 2022 | 17.9% | 4.56x | 0.91x | -$1.58 | 6.59x | $2.15B | 13.5% | 0.51x |
| 2023 | 19.0% | 4.67x | 1.22x | -$1.72 | 2.58x | $2.80B | 16.6% | 0.52x |
| 2024 | 20.8% | 3.99x | 1.07x | -$5.87 | 2.43x | $2.76B | 12.8% | 0.41x |
| 2025 | 21.7% | 4.18x | 0.79x | -$4.36 | 4.62x | $2.33B | 13.0% | 0.38x |
- Receivables are larger than the physical asset base, so a finance or credit book may sit outside the physical ratio and inside the debt used for coverage.
- Principal due is the current portion of debt.
Latest year inputs (2025)
Net PP&E: $6.79B
Inventory: $1.38B
Total assets: $37.61B
Goodwill: $12.71B
Intangibles: $2.51B
Liabilities: $25.70B
Tangible book: -$3.30B
Shares: 757,750,000
Revenue: $28.34B
Capex: $899.84M
D&A: $1.13B
EBITDA: $3.69B
Interest: $508.00M
Short-term debt: $95.00M
Free cash flow: $2.33B
Operating income: $2.61B
Invested capital: $17.20B
Tax rate: 14.4%