Spirit AeroSystems: Leveraged And Risky
Atrocious fundamentals make this $6 billion+ company a compelling short.
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.