L3HARRIS TECHNOLOGIES INC (1LHX.MI) Stock Fundamental Analysis
BIT:1LHX - Euronext Milan - US5024311095 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1LHX. 1LHX was compared to 46 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.
In the past year 1LHX had a positive cash flow from operations.
Each year in the past 5 years 1LHX has been profitable.
1LHX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1LHX has a better Return On Assets (3.89%) than 60.87% of its industry peers.
With a Return On Equity value of 8.39%, 1LHX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
1LHX has a Return On Invested Capital (5.23%) which is comparable to the rest of the industry.
1LHX had an Average Return On Invested Capital over the past 3 years of 5.07%. This is below the industry average of 8.83%.
The last Return On Invested Capital (5.23%) for 1LHX is above the 3 year average (5.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 8.39% | ||
| ROIC | 5.23% |
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 7.55% is fine compared to the rest of the industry. 1LHX outperforms 73.91% of its industry peers.
1LHX's Profit Margin has declined in the last couple of years.
1LHX's Operating Margin of 11.26% is fine compared to the rest of the industry. 1LHX outperforms 71.74% of its industry peers.
In the last couple of years the Operating Margin of 1LHX has declined.
With a Gross Margin value of 26.01%, 1LHX perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
In the last couple of years the Gross Margin of 1LHX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.26% | ||
| PM (TTM) | 7.55% | ||
| GM | 26.01% |
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
1LHX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 1LHX remains at a similar level compared to 1 year ago.
1LHX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1LHX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.10 indicates that 1LHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.10, 1LHX is doing worse than 63.04% of the companies in the same industry.
1LHX has a debt to FCF ratio of 5.40. This is a neutral value as 1LHX would need 5.40 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.40, 1LHX is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that 1LHX is somewhat dependend on debt financing.
1LHX has a better Debt to Equity ratio (0.60) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.4 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.54
WACC9.61%
2.3 Liquidity
A Current Ratio of 1.02 indicates that 1LHX should not have too much problems paying its short term obligations.
1LHX has a Current ratio of 1.02. This is in the lower half of the industry: 1LHX underperforms 76.09% of its industry peers.
1LHX has a Quick Ratio of 1.02. This is a bad value and indicates that 1LHX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.85, 1LHX is in the better half of the industry, outperforming 63.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for 1LHX have decreased by -0.88% 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.
The Revenue has been growing slightly by 5.39% in the past year.
Measured over the past years, 1LHX shows a very strong growth in Revenue. The Revenue has been growing by 25.68% on average per year.
EPS 1Y (TTM)-0.88%
EPS 3Y0.41%
EPS 5Y0.14%
EPS Q2Q%-21.24%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%-1.52%
3.2 Future
The Earnings Per Share is expected to grow by 6.95% on average over the next years.
The Revenue is expected to grow by 4.23% on average over the next years.
EPS Next Y-19.25%
EPS Next 2Y-3.29%
EPS Next 3Y1.91%
EPS Next 5Y6.95%
Revenue Next Year1.2%
Revenue Next 2Y3.28%
Revenue Next 3Y3.76%
Revenue Next 5Y4.23%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.98, the valuation of 1LHX can be described as rather expensive.
86.96% of the companies in the same industry are more expensive than 1LHX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. 1LHX is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 20.31, 1LHX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, 1LHX is valued a bit cheaper than 73.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1LHX to the average of the S&P500 Index (22.19), we can say 1LHX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.98 | ||
| Fwd PE | 20.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1LHX is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1LHX indicates a rather cheap valuation: 1LHX is cheaper than 80.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.52 | ||
| EV/EBITDA | 15.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)139.17
EPS Next 2Y-3.29%
EPS Next 3Y1.91%
5. Dividend
5.1 Amount
1LHX has a Yearly Dividend Yield of 1.92%.
Compared to an average industry Dividend Yield of 1.28, 1LHX pays a better dividend. On top of this 1LHX pays more dividend than 86.96% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, 1LHX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of 1LHX is nicely growing with an annual growth rate of 16.34%!
Dividend Growth(5Y)16.34%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
55.45% of the earnings are spent on dividend by 1LHX. This is a bit on the high side, but may be sustainable.
1LHX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.45%
EPS Next 2Y-3.29%
EPS Next 3Y1.91%
BIT:1LHX (6/16/2025, 7:00:00 PM)
216.4
-4.9 (-2.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.02%
Inst Owner ChangeN/A
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap40.46B
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend3.96
Dividend Growth(5Y)16.34%
DP55.45%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.75%
Min EPS beat(2)0.54%
Max EPS beat(2)2.95%
EPS beat(4)4
Avg EPS beat(4)1.49%
Min EPS beat(4)0.54%
Max EPS beat(4)2.95%
EPS beat(8)7
Avg EPS beat(8)1.83%
EPS beat(12)8
Avg EPS beat(12)0.77%
EPS beat(16)11
Avg EPS beat(16)0.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)-0.63%
Revenue beat(4)0
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)-0.63%
Revenue beat(8)3
Avg Revenue beat(8)0.57%
Revenue beat(12)5
Avg Revenue beat(12)0.45%
Revenue beat(16)5
Avg Revenue beat(16)-0.49%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.98 | ||
| Fwd PE | 20.31 | ||
| P/S | 2.19 | ||
| P/FCF | 20.52 | ||
| P/OCF | 17.76 | ||
| P/B | 2.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.77 |
EPS(TTM)10.83
EY5%
EPS(NY)10.65
Fwd EY4.92%
FCF(TTM)10.55
FCFY4.87%
OCF(TTM)12.18
OCFY5.63%
SpS98.75
BVpS88.92
TBVpS-40.22
PEG (NY)N/A
PEG (5Y)139.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 8.39% | ||
| ROCE | 7.08% | ||
| ROIC | 5.23% | ||
| ROICexc | 5.31% | ||
| ROICexgc | 29.75% | ||
| OM | 11.26% | ||
| PM (TTM) | 7.55% | ||
| GM | 26.01% | ||
| FCFM | 10.68% |
ROA(3y)3.23%
ROA(5y)3.61%
ROE(3y)6.66%
ROE(5y)7%
ROIC(3y)5.07%
ROIC(5y)5.06%
ROICexc(3y)5.19%
ROICexc(5y)5.21%
ROICexgc(3y)32.42%
ROICexgc(5y)33.48%
ROCE(3y)6.89%
ROCE(5y)6.83%
ROICexcg growth 3Y-9.8%
ROICexcg growth 5Y-16.22%
ROICexc growth 3Y-3.5%
ROICexc growth 5Y-14.2%
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%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.4 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 27.72% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.55% | ||
| Profit Quality | 141.37% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.1 |
F-Score8
WACC9.61%
ROIC/WACC0.54
Cap/Depr(3y)32.34%
Cap/Depr(5y)33.61%
Cap/Sales(3y)1.9%
Cap/Sales(5y)1.93%
Profit Quality(3y)152.3%
Profit Quality(5y)160.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.88%
EPS 3Y0.41%
EPS 5Y0.14%
EPS Q2Q%-21.24%
EPS Next Y-19.25%
EPS Next 2Y-3.29%
EPS Next 3Y1.91%
EPS Next 5Y6.95%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%-1.52%
Revenue Next Year1.2%
Revenue Next 2Y3.28%
Revenue Next 3Y3.76%
Revenue Next 5Y4.23%
EBIT growth 1Y8.23%
EBIT growth 3Y1.77%
EBIT growth 5Y16.51%
EBIT Next Year26.62%
EBIT Next 3Y12.57%
EBIT Next 5Y4.68%
FCF growth 1Y3.09%
FCF growth 3Y-2.84%
FCF growth 5Y16%
OCF growth 1Y6.16%
OCF growth 3Y-1.61%
OCF growth 5Y16.65%