LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:LDO - IT0003856405 - Common Stock
57.74 EUR
0 (0%)
LDO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 industry peers in the Aerospace & Defense industry. While LDO is still in line with the averages on profitability rating, there are concerns on its financial health. LDO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- LDO had positive earnings in the past year.
- In the past 5 years LDO has always been profitable.
- 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 4.86%, LDO is doing good in the industry, outperforming 66.04% of the companies in the same industry.
- The Return On Equity of LDO (17.66%) is better than 62.26% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.75%, LDO belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LDO is below the industry average of 9.24%.
- The last Return On Invested Capital (11.75%) for LDO is above the 3 year average (6.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 17.66% | ||
| ROIC | 11.75% |
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
- The Profit Margin of LDO (5.80%) is comparable to the rest of the industry.
- LDO's Profit Margin has been stable in the last couple of years.
- LDO has a Operating Margin of 7.54%. This is in the lower half of the industry: LDO underperforms 62.26% of its industry peers.
- In the last couple of years the Operating Margin of LDO has remained more or less at the same level.
- LDO's Gross Margin of 30.12% is in line compared to the rest of the industry. LDO outperforms 52.83% of its industry peers.
- In the last couple of years the Gross Margin of LDO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.54% | ||
| PM (TTM) | 5.8% | ||
| GM | 30.12% |
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.
- LDO has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for LDO has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.16 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 2.16. This is in the lower half of the industry: LDO underperforms 66.04% of its industry peers.
- A Debt/Equity ratio of 0.22 indicates that LDO is not too dependend on debt financing.
- LDO has a better Debt to Equity ratio (0.22) than 83.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.16 |
ROIC/WACC1.29
WACC9.09%
2.3 Liquidity
- LDO has a Current Ratio of 0.97. This is a bad value and indicates that LDO is not financially healthy enough and could expect problems in meeting its short term obligations.
- LDO has a worse Current ratio (0.97) than 83.02% of its industry peers.
- A Quick Ratio of 0.59 indicates that LDO may have some problems paying its short term obligations.
- LDO has a worse Quick ratio (0.59) than 77.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- LDO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.53%, which is quite impressive.
- LDO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.48% yearly.
- The Revenue has grown by 13.44% 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)24.53%
EPS 3Y9.76%
EPS 5Y-4.48%
EPS Q2Q%24.06%
Revenue 1Y (TTM)13.44%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%10.61%
3.2 Future
- The Earnings Per Share is expected to grow by 24.20% on average over the next years. This is a very strong growth
- Based on estimates for the next years, LDO will show a quite strong growth in Revenue. The Revenue will grow by 8.44% on average per year.
EPS Next Y45.75%
EPS Next 2Y31.73%
EPS Next 3Y26.89%
EPS Next 5Y24.2%
Revenue Next Year10.39%
Revenue Next 2Y9.34%
Revenue Next 3Y8.66%
Revenue Next 5Y8.44%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 37.99, the valuation of LDO can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of LDO indicates a somewhat cheap valuation: LDO is cheaper than 67.92% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of LDO to the average of the S&P500 Index (28.82), we can say LDO is valued slightly more expensively.
- The Price/Forward Earnings ratio is 25.67, which means the current valuation is very expensive for LDO.
- LDO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LDO is cheaper than 67.92% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of LDO to the average of the S&P500 Index (25.95), we can say LDO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.99 | ||
| Fwd PE | 25.67 |
4.2 Price Multiples
- 90.57% of the companies in the same industry are more expensive than LDO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.6 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- LDO has a very decent profitability rating, which may justify a higher PE ratio.
- LDO's earnings are expected to grow with 26.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y31.73%
EPS Next 3Y26.89%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.91%, LDO is not a good candidate for dividend investing.
- LDO's Dividend Yield is a higher than the industry average which is at 0.74.
- Compared to an average S&P500 Dividend Yield of 1.82, LDO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
- The dividend of LDO is nicely growing with an annual growth rate of 16.88%!
Dividend Growth(5Y)16.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 11.14% of the earnings are spent on dividend by LDO. This is a low number and sustainable payout ratio.
- LDO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP11.14%
EPS Next 2Y31.73%
EPS Next 3Y26.89%
LEONARDO SPA / LDO.MI FAQ
What is the fundamental rating for LDO stock?
ChartMill assigns a fundamental rating of 5 / 10 to LDO.MI.
What is the valuation status for LDO stock?
ChartMill assigns a valuation rating of 4 / 10 to LEONARDO SPA (LDO.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for LEONARDO SPA?
LEONARDO SPA (LDO.MI) has a profitability rating of 6 / 10.
How financially healthy is LEONARDO SPA?
The financial health rating of LEONARDO SPA (LDO.MI) is 3 / 10.
How sustainable is the dividend of LEONARDO SPA (LDO.MI) stock?
The dividend rating of LEONARDO SPA (LDO.MI) is 5 / 10 and the dividend payout ratio is 11.14%.