L3HARRIS TECHNOLOGIES INC (HRS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HRS - US5024311095 - Common Stock
301 EUR
+3.7 (+1.24%)
We assign a fundamental rating of 4 out of 10 to HRS. HRS was compared to 53 industry peers in the Aerospace & Defense industry. HRS has a medium profitability rating, but doesn't score so well on its financial health evaluation. HRS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- HRS had positive earnings in the past year.
- In the past year HRS had a positive cash flow from operations.
- In the past 5 years HRS has always been profitable.
- In the past 5 years HRS always reported a positive cash flow from operatings.
1.2 Ratios
- HRS has a Return On Assets (4.29%) which is in line with its industry peers.
- With a Return On Equity value of 9.01%, HRS perfoms like the industry average, outperforming 41.51% of the companies in the same industry.
- HRS has a worse Return On Invested Capital (5.01%) than 67.92% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HRS is below the industry average of 9.24%.
- The last Return On Invested Capital (5.01%) for HRS is above the 3 year average (4.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 9.01% | ||
| ROIC | 5.01% |
ROA(3y)3.23%
ROA(5y)3.61%
ROE(3y)6.66%
ROE(5y)7%
ROIC(3y)4.76%
ROIC(5y)4.75%
1.3 Margins
- With a decent Profit Margin value of 8.09%, HRS is doing good in the industry, outperforming 71.70% of the companies in the same industry.
- HRS's Profit Margin has declined in the last couple of years.
- HRS has a better Operating Margin (11.49%) than 73.58% of its industry peers.
- HRS's Operating Margin has declined in the last couple of years.
- HRS has a Gross Margin of 25.65%. This is comparable to the rest of the industry: HRS outperforms 41.51% of its industry peers.
- In the last couple of years the Gross Margin of HRS has declined.
| 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
- HRS 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 HRS remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, HRS has more shares outstanding
- The debt/assets ratio for HRS has been reduced compared to a year ago.
2.2 Solvency
- HRS has an Altman-Z score of 2.74. This is not the best score and indicates that HRS is in the grey zone with still only limited risk for bankruptcy at the moment.
- HRS has a Altman-Z score of 2.74. This is comparable to the rest of the industry: HRS outperforms 50.94% of its industry peers.
- The Debt to FCF ratio of HRS is 6.21, which is on the high side as it means it would take HRS, 6.21 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.21, HRS is in line with its industry, outperforming 52.83% of the companies in the same industry.
- HRS has a Debt/Equity ratio of 0.60. This is a neutral value indicating HRS is somewhat dependend on debt financing.
- HRS has a Debt to Equity ratio of 0.60. This is comparable to the rest of the industry: HRS outperforms 41.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.52
WACC9.66%
2.3 Liquidity
- HRS has a Current Ratio of 1.14. This is a normal value and indicates that HRS is financially healthy and should not expect problems in meeting its short term obligations.
- HRS's Current ratio of 1.14 is in line compared to the rest of the industry. HRS outperforms 43.40% of its industry peers.
- HRS has a Quick Ratio of 1.14. This is a bad value and indicates that HRS is not financially healthy enough and could expect problems in meeting its short term obligations.
- HRS has a better Quick ratio (0.95) than 62.26% 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 HRS have decreased strongly by -12.55% in the last year.
- HRS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.14% yearly.
- HRS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.83%.
- The Revenue has been growing by 25.68% on average over the past years. This is a very strong growth!
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
- Based on estimates for the next years, HRS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.01% on average per year.
- HRS 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 31.35, HRS can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, HRS is valued a bit cheaper than 77.36% of the companies in the same industry.
- HRS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.87.
- HRS is valuated quite expensively with a Price/Forward Earnings ratio of 28.30.
- Based on the Price/Forward Earnings ratio, HRS is valued a bit cheaper than the industry average as 62.26% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, HRS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.35 | ||
| Fwd PE | 28.3 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HRS.
- Based on the Price/Free Cash Flow ratio, HRS is valued a bit cheaper than 71.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.28 | ||
| EV/EBITDA | 20.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)218.38
EPS Next 2Y-2.01%
EPS Next 3Y3.6%
5. Dividend
5.1 Amount
- HRS has a Yearly Dividend Yield of 1.35%.
- Compared to an average industry Dividend Yield of 0.74, HRS pays a bit more dividend than its industry peers.
- HRS's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 51.11% of the earnings are spent on dividend by HRS. 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 / HRS.DE FAQ
Can you provide the ChartMill fundamental rating for L3HARRIS TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 4 / 10 to HRS.DE.
Can you provide the valuation status for L3HARRIS TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 3 / 10 to L3HARRIS TECHNOLOGIES INC (HRS.DE). This can be considered as Overvalued.
Can you provide the profitability details for L3HARRIS TECHNOLOGIES INC?
L3HARRIS TECHNOLOGIES INC (HRS.DE) has a profitability rating of 4 / 10.
What is the expected EPS growth for L3HARRIS TECHNOLOGIES INC (HRS.DE) stock?
The Earnings per Share (EPS) of L3HARRIS TECHNOLOGIES INC (HRS.DE) is expected to decline by -17.9% in the next year.
Is the dividend of L3HARRIS TECHNOLOGIES INC sustainable?
The dividend rating of L3HARRIS TECHNOLOGIES INC (HRS.DE) is 3 / 10 and the dividend payout ratio is 51.11%.