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Spirit AeroSystems: Leveraged And Risky

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Spirit AeroSystems: Leveraged And Risky

Atrocious fundamentals make this $6 billion+ company a compelling short.

Vince Martin
May 7, 2023
∙ Paid
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⚡ Highlights:

  • Since being carved out from Boeing, Spirit AeroSystems has proven to be a substandard business.

  • Mid-term challenges suggest pressure on free cash flow. That’s a problem given a heavily leveraged balance sheet.

  • The bull case has been based on industry recovery. But Spirit is showing no ability to capitalize on that recovery.

  • The Q1 report seems to have broken the bull case — which suggests more downside, even near a 52-week low.

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