Aerospace & Defense
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Fundamentals
Size Analysis: The public Market Cap went from $2,125 billion to $2,367 billion over the last quarter. On the private market, the number of transactions seemed to remain stable from the past 6 quarters, and the total amount of money transacted during the last quarter is showing a significant decrease.
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Public Market Dynamics: The industry in general kept increasing its year-over-year returns, with the largest 20 companies matching the performance of the SPY index. The debt to equity ratio is slightly above 40%, and its interest expenses as percentage of revenues increased to 1.4%. With 21.43% gross profit, and 14.83% only for operating expenses to revenues, the net profit margin rose to 3.99%.
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Transaction Trends: There was a total of 372 transactions during the quarter, a slight increase from the transaction figures observed in 3Q2023. Cumulative transaction values have also continued to decline over the past few quarters. As previously, the majority of transactions occurred in the capital goods and transportation space. The number of public offerings outpaced private placements, with public offerings higher relative to the last quarter, while private placements declined over the quarter.
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Dispersion Insights: Asia emerged as the main contributor to revenues, followed by North America. M&A activity declined compared to the last quarter, with the highest activity in Asia, followed by Europe. Public offerings and private placements were highest in North America, followed by Asia.
Methodology
We screened CapitalIQ using its industry classification. Transactions were filtered by announced date within the last 3 years. Companies were filtered by having a public company type. The main industry selected was "Industrials". CapitalIQ subsectors "Aerospace and Defense", "Air Freight and Logistics", and "Passenger Airlines" were used to screen the database. CapitalIQ sectors "Capital Goods" and "Transportation" were used as categories. Our Capital Goods' sectors were defined by keywords from the CapitalIQ market intelligent industry classification. Our Transportation's sectors were defined by their sub-sectors.
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