L3HARRIS TECHNOLOGIES INC (1LHX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LHX - US5024311095 - Common Stock
293.6 EUR
+3.1 (+1.07%)
Overall 1LHX gets a fundamental rating of 4 out of 10. We evaluated 1LHX against 53 industry peers in the Aerospace & Defense industry. 1LHX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1LHX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- 1LHX had positive earnings in the past year.
- 1LHX had a positive operating cash flow in the past year.
- 1LHX had positive earnings in each of the past 5 years.
- In the past 5 years 1LHX always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 4.29%, 1LHX is doing good in the industry, outperforming 60.38% of the companies in the same industry.
- 1LHX's Return On Equity of 9.01% is in line compared to the rest of the industry. 1LHX outperforms 43.40% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.34%, 1LHX is doing worse than 66.04% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1LHX is below the industry average of 9.24%.
- The 3 year average ROIC (5.07%) for 1LHX is below the current ROIC(5.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 9.01% | ||
| ROIC | 5.34% |
ROA(3y)3.23%
ROA(5y)3.61%
ROE(3y)6.66%
ROE(5y)7%
ROIC(3y)5.07%
ROIC(5y)5.06%
1.3 Margins
- 1LHX's Profit Margin of 8.09% is fine compared to the rest of the industry. 1LHX outperforms 73.58% of its industry peers.
- In the last couple of years the Profit Margin of 1LHX has declined.
- The Operating Margin of 1LHX (11.49%) is better than 75.47% of its industry peers.
- In the last couple of years the Operating Margin of 1LHX has declined.
- The Gross Margin of 1LHX (25.65%) is comparable to the rest of the industry.
- 1LHX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.49% | ||
| PM (TTM) | 8.09% | ||
| GM | 25.65% |
OM growth 3Y-4.16%
OM growth 5Y-7.3%
PM growth 3Y-12.08%
PM growth 5Y-12.74%
GM growth 3Y-4.96%
GM growth 5Y-5.47%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1LHX is destroying value.
- Compared to 1 year ago, 1LHX has about the same amount of shares outstanding.
- 1LHX has more shares outstanding than it did 5 years ago.
- 1LHX has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.70 indicates that 1LHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1LHX's Altman-Z score of 2.70 is in line compared to the rest of the industry. 1LHX outperforms 47.17% of its industry peers.
- The Debt to FCF ratio of 1LHX is 6.21, which is on the high side as it means it would take 1LHX, 6.21 years of fcf income to pay off all of its debts.
- 1LHX has a Debt to FCF ratio (6.21) which is in line with its industry peers.
- A Debt/Equity ratio of 0.60 indicates that 1LHX is somewhat dependend on debt financing.
- 1LHX's Debt to Equity ratio of 0.60 is in line compared to the rest of the industry. 1LHX outperforms 43.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.55
WACC9.77%
2.3 Liquidity
- A Current Ratio of 1.14 indicates that 1LHX should not have too much problems paying its short term obligations.
- 1LHX has a Current ratio (1.14) which is in line with its industry peers.
- 1LHX has a Quick Ratio of 1.14. This is a bad value and indicates that 1LHX is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1LHX has a Quick ratio of 0.95. This is in the better half of the industry: 1LHX outperforms 64.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- The earnings per share for 1LHX have decreased strongly by -12.55% in the last year.
- 1LHX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.14% yearly.
- 1LHX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.83%.
- 1LHX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.68% yearly.
EPS 1Y (TTM)-12.55%
EPS 3Y0.41%
EPS 5Y0.14%
EPS Q2Q%-19.16%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%6.93%
3.2 Future
- 1LHX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.01% yearly.
- 1LHX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.18% yearly.
EPS Next Y-17.9%
EPS Next 2Y-2.01%
EPS Next 3Y3.6%
EPS Next 5Y9.01%
Revenue Next Year3.17%
Revenue Next 2Y4.65%
Revenue Next 3Y5.19%
Revenue Next 5Y5.18%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.36, the valuation of 1LHX can be described as expensive.
- Based on the Price/Earnings ratio, 1LHX is valued cheaper than 81.13% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1LHX is valued at the same level.
- A Price/Forward Earnings ratio of 27.39 indicates a quite expensive valuation of 1LHX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1LHX indicates a somewhat cheap valuation: 1LHX is cheaper than 64.15% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1LHX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 27.39 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1LHX is valued a bit cheaper than 62.26% of the companies in the same industry.
- 75.47% of the companies in the same industry are more expensive than 1LHX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.14 | ||
| EV/EBITDA | 20.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)211.47
EPS Next 2Y-2.01%
EPS Next 3Y3.6%
5. Dividend
5.1 Amount
- 1LHX has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.74, 1LHX pays a bit more dividend than its industry peers.
- 1LHX's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 51.11% of the earnings are spent on dividend by 1LHX. This is a bit on the high side, but may be sustainable.
DP51.11%
EPS Next 2Y-2.01%
EPS Next 3Y3.6%
L3HARRIS TECHNOLOGIES INC / 1LHX.MI FAQ
What is the ChartMill fundamental rating of L3HARRIS TECHNOLOGIES INC (1LHX.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1LHX.MI.
What is the valuation status of L3HARRIS TECHNOLOGIES INC (1LHX.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to L3HARRIS TECHNOLOGIES INC (1LHX.MI). This can be considered as Fairly Valued.
How profitable is L3HARRIS TECHNOLOGIES INC (1LHX.MI) stock?
L3HARRIS TECHNOLOGIES INC (1LHX.MI) has a profitability rating of 5 / 10.
What is the financial health of L3HARRIS TECHNOLOGIES INC (1LHX.MI) stock?
The financial health rating of L3HARRIS TECHNOLOGIES INC (1LHX.MI) is 3 / 10.
Can you provide the expected EPS growth for 1LHX stock?
The Earnings per Share (EPS) of L3HARRIS TECHNOLOGIES INC (1LHX.MI) is expected to decline by -17.9% in the next year.