LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
BIT:LDO - Euronext Milan - IT0003856405 - Common Stock - Currency: EUR
Overall LDO gets a fundamental rating of 5 out of 10. We evaluated LDO against 41 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
LDO had positive earnings in the past year.
In the past year LDO had a positive cash flow from operations.
Each year in the past 5 years LDO has 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 (4.97%) than 68.29% of its industry peers.
LDO has a Return On Equity of 18.62%. This is in the better half of the industry: LDO outperforms 75.61% of its industry peers.
LDO has a better Return On Invested Capital (9.48%) than 68.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LDO is below the industry average of 8.87%.
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 of 6.56%. This is in the better half of the industry: LDO outperforms 63.41% of its industry peers.
LDO's Profit Margin has been stable in the last couple of years.
LDO's Operating Margin of 6.78% is in line compared to the rest of the industry. LDO outperforms 43.90% 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 has a Gross Margin (30.79%) which is comparable to the rest of the industry.
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
LDO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LDO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LDO has more shares outstanding
Compared to 1 year ago, LDO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.81 indicates that LDO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.81, LDO perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
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 51.22% 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.
With an excellent Debt to Equity ratio value of 0.26, LDO belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 7.28 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.18
WACC8.03%
2.3 Liquidity
LDO has a Current Ratio of 0.96. 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 0.96, LDO is doing worse than 75.61% of the companies in the same industry.
LDO has a Quick Ratio of 0.96. 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's Quick ratio of 0.61 is on the low side compared to the rest of the industry. LDO is outperformed by 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
LDO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.39%, which is quite good.
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 17.59% in the past year. This is quite good.
LDO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.20% yearly.
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
Based on estimates for the next years, LDO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.92% on average per year.
LDO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.87% yearly.
EPS Next Y36.56%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
EPS Next 5Y9.92%
Revenue Next Year7.74%
Revenue Next 2Y7.47%
Revenue Next 3Y7.35%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.04, which means the current valuation is very expensive for LDO.
LDO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.75. LDO is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 27.21, LDO can be considered very expensive at the moment.
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 20.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.04 | ||
| Fwd PE | 27.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDO is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
LDO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.09 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
The 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)1.01
PEG (5Y)N/A
EPS Next 2Y27.15%
EPS Next 3Y23.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, LDO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.41, LDO pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.17, LDO pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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
10.57% of the earnings are spent on dividend by LDO. This is a low number and sustainable payout ratio.
The dividend of LDO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP10.57%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
BIT:LDO (5/2/2025, 5:36:15 PM)
48.15
+2.35 (+5.13%)
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 Cap27.84B
Analysts77
Price Target48.34 (0.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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)37.62%
PT rev (3m)73.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.86%
EPS NY rev (3m)4.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2%
Revenue NY rev (3m)3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.04 | ||
| Fwd PE | 27.21 | ||
| P/S | 1.09 | ||
| P/FCF | 43.09 | ||
| P/OCF | 18.06 | ||
| P/B | 3.1 | ||
| P/tB | 106.25 | ||
| EV/EBITDA | 11.41 |
EPS(TTM)1.3
EY2.7%
EPS(NY)1.77
Fwd EY3.68%
FCF(TTM)1.12
FCFY2.32%
OCF(TTM)2.67
OCFY5.54%
SpS44.14
BVpS15.55
TBVpS0.45
PEG (NY)1.01
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 | 1.81 |
F-Score6
WACC8.03%
ROIC/WACC1.18
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 Year7.74%
Revenue Next 2Y7.47%
Revenue Next 3Y7.35%
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%