LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
BIT:LDO - Euronext Milan - IT0003856405 - Common Stock - Currency: EUR
LDO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of LDO while its profitability can be described as average. LDO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LDO had positive earnings in the past year.
LDO had a positive operating cash flow in the past year.
LDO had positive earnings in each of the past 5 years.
LDO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.97%, LDO is doing good in the industry, outperforming 67.44% of the companies in the same industry.
LDO has a better Return On Equity (18.62%) than 72.09% of its industry peers.
LDO has a Return On Invested Capital of 9.48%. This is in the better half of the industry: LDO outperforms 67.44% of its industry peers.
LDO had an Average Return On Invested Capital over the past 3 years of 6.61%. This is below the industry average of 9.16%.
The last Return On Invested Capital (9.48%) for LDO is above the 3 year average (6.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 18.62% | ||
| ROIC | 9.48% |
ROA(3y)2.86%
ROA(5y)2.31%
ROE(3y)11.1%
ROE(5y)9.4%
ROIC(3y)6.61%
ROIC(5y)6.35%
1.3 Margins
LDO has a Profit Margin (6.56%) which is comparable to the rest of the industry.
LDO's Profit Margin has been stable in the last couple of years.
The Operating Margin of LDO (6.78%) is worse than 65.12% of its industry peers.
LDO's Operating Margin has been stable in the last couple of years.
LDO has a Gross Margin of 30.79%. This is comparable to the rest of the industry: LDO outperforms 51.16% of its industry peers.
LDO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.78% | ||
| PM (TTM) | 6.56% | ||
| GM | 30.79% |
OM growth 3Y4.63%
OM growth 5Y-1.19%
PM growth 3Y13.4%
PM growth 5Y0.3%
GM growth 3Y1.05%
GM growth 5Y-0.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LDO is still creating some value.
Compared to 1 year ago, LDO has about the same amount of shares outstanding.
Compared to 5 years ago, LDO has more shares outstanding
LDO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.89 indicates that LDO is not a great score, but indicates only limited risk for bankruptcy at the moment.
LDO has a Altman-Z score of 1.89. This is in the lower half of the industry: LDO underperforms 65.12% of its industry peers.
LDO has a debt to FCF ratio of 7.28. This is a slightly negative value and a sign of low solvency as LDO would need 7.28 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.28, LDO is in line with its industry, outperforming 51.16% of the companies in the same industry.
LDO has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
LDO's Debt to Equity ratio of 0.26 is amongst the best of the industry. LDO outperforms 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 7.28 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.13
WACC8.4%
2.3 Liquidity
A Current Ratio of 0.96 indicates that LDO may have some problems paying its short term obligations.
With a Current ratio value of 0.96, LDO is not doing good in the industry: 79.07% of the companies in the same industry are doing better.
A Quick Ratio of 0.61 indicates that LDO may have some problems paying its short term obligations.
The Quick ratio of LDO (0.61) is worse than 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.39% over the past year.
The Earnings Per Share has been decreasing by -4.48% on average over the past years.
The Revenue has grown by 17.59% in the past year. This is quite good.
Measured over the past years, LDO shows a small growth in Revenue. The Revenue has been growing by 5.20% on average per year.
EPS 1Y (TTM)13.39%
EPS 3Y9.76%
EPS 5Y-4.48%
EPS Q2Q%11.06%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%13.24%
3.2 Future
LDO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.92% yearly.
The Revenue is expected to grow by 5.87% on average over the next years.
EPS Next Y36.56%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
EPS Next 5Y9.92%
Revenue Next Year8.19%
Revenue Next 2Y7.83%
Revenue Next 3Y7.66%
Revenue Next 5Y5.87%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.51 indicates a quite expensive valuation of LDO.
The rest of the industry has a similar Price/Earnings ratio as LDO.
The average S&P500 Price/Earnings ratio is at 25.91. LDO is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 29.02, which means the current valuation is very expensive for LDO.
LDO's Price/Forward Earnings is on the same level as the industry average.
LDO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.51 | ||
| Fwd PE | 29.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDO is valued cheaper than 86.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LDO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.97 | ||
| EV/EBITDA | 12.66 |
4.3 Compensation for Growth
LDO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LDO may justify a higher PE ratio.
LDO's earnings are expected to grow with 23.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y27.15%
EPS Next 3Y23.76%
5. Dividend
5.1 Amount
LDO has a Yearly Dividend Yield of 1.10%.
Compared to an average industry Dividend Yield of 1.31, LDO pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.10, LDO pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of LDO grows each year by 16.88%, which is quite nice.
Dividend Growth(5Y)16.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LDO pays out 10.57% of its income as dividend. This is a sustainable payout ratio.
LDO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.57%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
BIT:LDO (5/23/2025, 5:36:15 PM)
51.36
+0.14 (+0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.43%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap29.69B
Analysts75
Price Target48.34 (-5.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.31
Dividend Growth(5Y)16.88%
DP10.57%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)247.05%
Min EPS beat(2)1.01%
Max EPS beat(2)493.08%
EPS beat(4)3
Avg EPS beat(4)128.86%
Min EPS beat(4)-54.68%
Max EPS beat(4)493.08%
EPS beat(8)3
Avg EPS beat(8)56.58%
EPS beat(12)7
Avg EPS beat(12)99.95%
EPS beat(16)10
Avg EPS beat(16)78.61%
Revenue beat(2)2
Avg Revenue beat(2)3.73%
Min Revenue beat(2)0.09%
Max Revenue beat(2)7.38%
Revenue beat(4)4
Avg Revenue beat(4)5.96%
Min Revenue beat(4)0.09%
Max Revenue beat(4)8.89%
Revenue beat(8)5
Avg Revenue beat(8)2.11%
Revenue beat(12)9
Avg Revenue beat(12)30.27%
Revenue beat(16)12
Avg Revenue beat(16)32.4%
PT rev (1m)3.08%
PT rev (3m)56.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.43%
Revenue NY rev (3m)3.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.51 | ||
| Fwd PE | 29.02 | ||
| P/S | 1.16 | ||
| P/FCF | 45.97 | ||
| P/OCF | 19.27 | ||
| P/B | 3.3 | ||
| P/tB | 113.33 | ||
| EV/EBITDA | 12.66 |
EPS(TTM)1.3
EY2.53%
EPS(NY)1.77
Fwd EY3.45%
FCF(TTM)1.12
FCFY2.18%
OCF(TTM)2.67
OCFY5.19%
SpS44.14
BVpS15.55
TBVpS0.45
PEG (NY)1.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 18.62% | ||
| ROCE | 11.53% | ||
| ROIC | 9.48% | ||
| ROICexc | 11.43% | ||
| ROICexgc | 38.21% | ||
| OM | 6.78% | ||
| PM (TTM) | 6.56% | ||
| GM | 30.79% | ||
| FCFM | 2.53% |
ROA(3y)2.86%
ROA(5y)2.31%
ROE(3y)11.1%
ROE(5y)9.4%
ROIC(3y)6.61%
ROIC(5y)6.35%
ROICexc(3y)7.82%
ROICexc(5y)7.66%
ROICexgc(3y)23.66%
ROICexgc(5y)24.69%
ROCE(3y)8.05%
ROCE(5y)7.73%
ROICexcg growth 3Y7.63%
ROICexcg growth 5Y-1.46%
ROICexc growth 3Y6%
ROICexc growth 5Y-1.29%
OM growth 3Y4.63%
OM growth 5Y-1.19%
PM growth 3Y13.4%
PM growth 5Y0.3%
GM growth 3Y1.05%
GM growth 5Y-0.43%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 7.28 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 115.19% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 9.67 | ||
| Cash Conversion | 61.44% | ||
| Profit Quality | 38.59% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.89 |
F-Score6
WACC8.4%
ROIC/WACC1.13
Cap/Depr(3y)119.32%
Cap/Depr(5y)102.84%
Cap/Sales(3y)5.11%
Cap/Sales(5y)4.4%
Profit Quality(3y)54.54%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.39%
EPS 3Y9.76%
EPS 5Y-4.48%
EPS Q2Q%11.06%
EPS Next Y36.56%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
EPS Next 5Y9.92%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%13.24%
Revenue Next Year8.19%
Revenue Next 2Y7.83%
Revenue Next 3Y7.66%
Revenue Next 5Y5.87%
EBIT growth 1Y31.04%
EBIT growth 3Y12.91%
EBIT growth 5Y3.95%
EBIT Next Year70.9%
EBIT Next 3Y28.22%
EBIT Next 5Y23.87%
FCF growth 1Y59.9%
FCF growth 3Y71.98%
FCF growth 5Y70.37%
OCF growth 1Y29.93%
OCF growth 3Y27.59%
OCF growth 5Y19.25%