LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
BIT:LDO - Euronext Milan - IT0003856405 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to LDO. LDO was compared to 46 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LDO was profitable.
In the past 5 years LDO has always been profitable.
Each year in the past 5 years LDO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LDO (4.83%) is better than 63.04% of its industry peers.
LDO's Return On Equity of 17.55% is fine compared to the rest of the industry. LDO outperforms 63.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.56%, LDO is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LDO is below the industry average of 9.36%.
The 3 year average ROIC (6.61%) for LDO is below the current ROIC(11.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 17.55% | ||
| ROIC | 11.56% |
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
With a Profit Margin value of 5.86%, LDO perfoms like the industry average, outperforming 54.35% of the companies in the same industry.
In the last couple of years the Profit Margin of LDO has remained more or less at the same level.
LDO has a Operating Margin (7.54%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LDO has remained more or less at the same level.
With a Gross Margin value of 30.33%, LDO perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
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) | 5.86% | ||
| GM | 30.33% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LDO is creating some value.
The number of shares outstanding for LDO remains at a similar level compared to 1 year ago.
LDO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LDO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.95 indicates that LDO is not a great score, but indicates only limited risk for bankruptcy at the moment.
LDO's Altman-Z score of 1.95 is on the low side compared to the rest of the industry. LDO is outperformed by 67.39% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that LDO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.22, LDO belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.95 |
ROIC/WACC1.47
WACC7.87%
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.
Looking at the Current ratio, with a value of 0.97, LDO is doing worse than 84.78% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that LDO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.59, LDO is doing worse than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.76% over the past year.
Measured over the past years, LDO shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.48% on average per year.
LDO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.05%.
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)32.76%
EPS 3Y9.76%
EPS 5Y-4.48%
EPS Q2Q%97.08%
Revenue 1Y (TTM)15.05%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%10.16%
3.2 Future
Based on estimates for the next years, LDO will show a very strong growth in Earnings Per Share. The EPS will grow by 24.48% on average per year.
LDO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.61% yearly.
EPS Next Y36.56%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
EPS Next 5Y24.48%
Revenue Next Year8.61%
Revenue Next 2Y8.18%
Revenue Next 3Y7.98%
Revenue Next 5Y9.61%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.73, LDO can be considered very expensive at the moment.
69.57% of the companies in the same industry are more expensive than LDO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LDO to the average of the S&P500 Index (26.84), we can say LDO is valued inline with the index average.
A Price/Forward Earnings ratio of 21.41 indicates a rather expensive valuation of LDO.
Based on the Price/Forward Earnings ratio, LDO is valued a bit cheaper than the industry average as 67.39% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.94. LDO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.73 | ||
| Fwd PE | 21.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDO is valued cheaply inside the industry as 93.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.99 |
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.
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)0.84
PEG (5Y)N/A
EPS Next 2Y27.15%
EPS Next 3Y23.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, LDO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.15, LDO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, LDO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
LDO pays out 0.13% of its income as dividend. This is a sustainable payout ratio.
LDO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0.13%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
BIT:LDO (8/20/2025, 7:00:00 PM)
44.86
+0.56 (+1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.87%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap25.94B
Analysts81
Price Target56.06 (24.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.31
Dividend Growth(5Y)16.88%
DP0.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.96%
Min EPS beat(2)17.25%
Max EPS beat(2)26.68%
EPS beat(4)4
Avg EPS beat(4)134.51%
Min EPS beat(4)1.01%
Max EPS beat(4)493.08%
EPS beat(8)5
Avg EPS beat(8)66.23%
EPS beat(12)7
Avg EPS beat(12)89.02%
EPS beat(16)10
Avg EPS beat(16)75.47%
Revenue beat(2)1
Avg Revenue beat(2)-6.11%
Min Revenue beat(2)-15.16%
Max Revenue beat(2)2.94%
Revenue beat(4)3
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-15.16%
Max Revenue beat(4)7.38%
Revenue beat(8)5
Avg Revenue beat(8)0.77%
Revenue beat(12)8
Avg Revenue beat(12)22.47%
Revenue beat(16)11
Avg Revenue beat(16)25.93%
PT rev (1m)3.56%
PT rev (3m)15.96%
EPS NQ rev (1m)23.48%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)2.6%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.73 | ||
| Fwd PE | 21.41 | ||
| P/S | 0.96 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.88 | ||
| P/tB | 52.5 | ||
| EV/EBITDA | 9.99 |
EPS(TTM)1.46
EY3.25%
EPS(NY)2.1
Fwd EY4.67%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS46.61
BVpS15.57
TBVpS0.85
PEG (NY)0.84
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 17.55% | ||
| ROCE | 14.06% | ||
| ROIC | 11.56% | ||
| ROICexc | 13.21% | ||
| ROICexgc | 40.38% | ||
| OM | 7.54% | ||
| PM (TTM) | 5.86% | ||
| GM | 30.33% | ||
| FCFM | N/A |
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-ScoreN/A
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.95 |
F-ScoreN/A
WACC7.87%
ROIC/WACC1.47
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)32.76%
EPS 3Y9.76%
EPS 5Y-4.48%
EPS Q2Q%97.08%
EPS Next Y36.56%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
EPS Next 5Y24.48%
Revenue 1Y (TTM)15.05%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%10.16%
Revenue Next Year8.61%
Revenue Next 2Y8.18%
Revenue Next 3Y7.98%
Revenue Next 5Y9.61%
EBIT growth 1Y42.8%
EBIT growth 3Y12.91%
EBIT growth 5Y3.95%
EBIT Next Year73.88%
EBIT Next 3Y29.87%
EBIT Next 5Y25.3%
FCF growth 1Y59.9%
FCF growth 3Y71.98%
FCF growth 5Y70.37%
OCF growth 1Y29.93%
OCF growth 3Y27.59%
OCF growth 5Y19.25%