LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
Europe - BIT:LDO - IT0003856405 - Common Stock
50.5 EUR
+0.71 (+1.43%)
We assign a fundamental rating of 5 out of 10 to LDO. LDO was compared to 46 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 is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years LDO had a positive operating cash flow.
1.2 Ratios
LDO has a better Return On Assets (4.83%) than 66.67% of its industry peers.
LDO has a Return On Equity of 17.55%. This is in the better half of the industry: LDO outperforms 66.67% of its industry peers.
LDO's Return On Invested Capital of 11.56% is fine compared to the rest of the industry. LDO outperforms 76.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LDO is below the industry average of 9.09%.
The last Return On Invested Capital (11.56%) for LDO is above the 3 year average (6.61%), which is a sign of increasing profitability.
| 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
LDO has a Profit Margin (5.86%) which is comparable to the rest of the industry.
LDO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 7.54%, LDO is in line with its industry, outperforming 45.24% of the companies in the same industry.
In the last couple of years the Operating Margin of LDO has remained more or less at the same level.
LDO has a Gross Margin (30.33%) which is in line with its industry peers.
LDO's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LDO is still creating some value.
LDO has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LDO has been increased compared to 5 years ago.
LDO has a better debt/assets ratio than last year.
2.2 Solvency
LDO has an Altman-Z score of 2.04. This is not the best score and indicates that LDO is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of LDO (2.04) is worse than 64.29% of its industry peers.
LDO has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LDO (0.22) is better than 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.04 |
ROIC/WACC1.52
WACC7.62%
2.3 Liquidity
A Current Ratio of 0.97 indicates that LDO may have some problems paying its short term obligations.
LDO has a worse Current ratio (0.97) than 80.95% of its industry peers.
LDO has a Quick 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 Quick ratio of 0.59. This is in the lower half of the industry: LDO underperforms 71.43% of its industry peers.
| 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.
LDO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.48% yearly.
Looking at the last year, LDO shows a quite strong growth in Revenue. The Revenue has grown by 15.05% in the last year.
The Revenue has been growing slightly by 5.20% on average over the past years.
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 25.01% on average per year.
The Revenue is expected to grow by 9.76% on average over the next years. This is quite good.
EPS Next Y44.86%
EPS Next 2Y30.6%
EPS Next 3Y25.87%
EPS Next 5Y25.01%
Revenue Next Year8.78%
Revenue Next 2Y8.58%
Revenue Next 3Y8.11%
Revenue Next 5Y9.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
LDO is valuated quite expensively with a Price/Earnings ratio of 34.59.
Compared to the rest of the industry, the Price/Earnings ratio of LDO indicates a somewhat cheap valuation: LDO is cheaper than 69.05% of the companies listed in the same industry.
LDO is valuated rather expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
LDO is valuated rather expensively with a Price/Forward Earnings ratio of 22.85.
Based on the Price/Forward Earnings ratio, LDO is valued a bit cheaper than 69.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. LDO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.59 | ||
| Fwd PE | 22.85 |
4.2 Price Multiples
LDO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LDO is cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.26 |
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.
A more expensive valuation may be justified as LDO's earnings are expected to grow with 25.87% in the coming years.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y30.6%
EPS Next 3Y25.87%
5. Dividend
5.1 Amount
LDO has a Yearly Dividend Yield of 1.04%.
LDO's Dividend Yield is a higher than the industry average which is at 1.16.
Compared to an average S&P500 Dividend Yield of 2.38, LDO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
0.13% 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.
DP0.13%
EPS Next 2Y30.6%
EPS Next 3Y25.87%
BIT:LDO (9/12/2025, 7:00:00 PM)
50.5
+0.71 (+1.43%)
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 Cap29.20B
Analysts81
Price Target55.72 (10.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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)-0.6%
PT rev (3m)3.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)6.08%
EPS NY rev (3m)6.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.59 | ||
| Fwd PE | 22.85 | ||
| P/S | 1.08 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.24 | ||
| P/tB | 59.1 | ||
| EV/EBITDA | 11.26 |
EPS(TTM)1.46
EY2.89%
EPS(NY)2.21
Fwd EY4.38%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS46.61
BVpS15.57
TBVpS0.85
PEG (NY)0.77
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 | 2.04 |
F-ScoreN/A
WACC7.62%
ROIC/WACC1.52
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 Y44.86%
EPS Next 2Y30.6%
EPS Next 3Y25.87%
EPS Next 5Y25.01%
Revenue 1Y (TTM)15.05%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%10.16%
Revenue Next Year8.78%
Revenue Next 2Y8.58%
Revenue Next 3Y8.11%
Revenue Next 5Y9.76%
EBIT growth 1Y42.8%
EBIT growth 3Y12.91%
EBIT growth 5Y3.95%
EBIT Next Year73.88%
EBIT Next 3Y29.87%
EBIT Next 5Y25.43%
FCF growth 1Y59.9%
FCF growth 3Y71.98%
FCF growth 5Y70.37%
OCF growth 1Y29.93%
OCF growth 3Y27.59%
OCF growth 5Y19.25%