L3HARRIS TECHNOLOGIES INC (LHX) Stock Fundamental Analysis
NYSE:LHX - US5024311095 - Common Stock
276.17 USD
+0.4 (+0.15%)
276.17 USD
0 (0%)
LHX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 68 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of LHX while its profitability can be described as average. LHX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LHX was profitable.
In the past year LHX had a positive cash flow from operations.
LHX had positive earnings in each of the past 5 years.
Each year in the past 5 years LHX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.11%, LHX is doing good in the industry, outperforming 63.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.80%, LHX is in the better half of the industry, outperforming 63.24% of the companies in the same industry.
LHX's Return On Invested Capital of 5.51% is in line compared to the rest of the industry. LHX outperforms 50.00% of its industry peers.
LHX had an Average Return On Invested Capital over the past 3 years of 5.34%. This is below the industry average of 8.61%.
The last Return On Invested Capital (5.51%) for LHX is above the 3 year average (5.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 8.8% | ||
| ROIC | 5.51% |
ROA(3y)3.23%
ROA(5y)3.61%
ROE(3y)6.66%
ROE(5y)7%
ROIC(3y)5.34%
ROIC(5y)5.33%
1.3 Margins
Looking at the Profit Margin, with a value of 7.94%, LHX is in the better half of the industry, outperforming 72.06% of the companies in the same industry.
LHX's Profit Margin has declined in the last couple of years.
The Operating Margin of LHX (11.38%) is better than 77.94% of its industry peers.
LHX's Operating Margin has declined in the last couple of years.
LHX has a Gross Margin (25.74%) which is in line with its industry peers.
LHX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.38% | ||
| PM (TTM) | 7.94% | ||
| GM | 25.74% |
OM growth 3Y-4.16%
OM growth 5Y-7.3%
PM growth 3Y-12.08%
PM growth 5Y-12.74%
GM growth 3Y-4.96%
GM growth 5Y-5.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LHX is destroying value.
The number of shares outstanding for LHX remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LHX has more shares outstanding
The debt/assets ratio for LHX has been reduced compared to a year ago.
2.2 Solvency
LHX has an Altman-Z score of 2.27. This is not the best score and indicates that LHX is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.27, LHX is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
LHX has a debt to FCF ratio of 5.59. This is a neutral value as LHX would need 5.59 years to pay back of all of its debts.
The Debt to FCF ratio of LHX (5.59) is better than 70.59% of its industry peers.
LHX has a Debt/Equity ratio of 0.62. This is a neutral value indicating LHX is somewhat dependend on debt financing.
LHX has a worse Debt to Equity ratio (0.62) than 60.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.57
WACC9.64%
2.3 Liquidity
LHX has a Current Ratio of 1.04. This is a normal value and indicates that LHX is financially healthy and should not expect problems in meeting its short term obligations.
LHX has a worse Current ratio (1.04) than 82.35% of its industry peers.
LHX has a Quick Ratio of 1.04. This is a bad value and indicates that LHX is not financially healthy enough and could expect problems in meeting its short term obligations.
LHX's Quick ratio of 0.87 is on the low side compared to the rest of the industry. LHX is outperformed by 72.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for LHX have decreased by -6.54% in the last year.
LHX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.14% yearly.
LHX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.93%.
Measured over the past years, LHX shows a very strong growth in Revenue. The Revenue has been growing by 25.68% on average per year.
EPS 1Y (TTM)-6.54%
EPS 3Y0.41%
EPS 5Y0.14%
EPS Q2Q%-14.2%
Revenue 1Y (TTM)2.93%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%2.4%
3.2 Future
The Earnings Per Share is expected to grow by 8.12% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.75% on average over the next years.
EPS Next Y-18.9%
EPS Next 2Y-2.55%
EPS Next 3Y2.59%
EPS Next 5Y8.12%
Revenue Next Year2.18%
Revenue Next 2Y3.97%
Revenue Next 3Y4.46%
Revenue Next 5Y4.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.01, which indicates a rather expensive current valuation of LHX.
Based on the Price/Earnings ratio, LHX is valued cheaper than 85.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, LHX is valued at the same level.
A Price/Forward Earnings ratio of 22.18 indicates a rather expensive valuation of LHX.
Based on the Price/Forward Earnings ratio, LHX is valued a bit cheaper than 73.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, LHX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.01 | ||
| Fwd PE | 22.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LHX is valued a bit cheaper than 76.47% of the companies in the same industry.
LHX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LHX is cheaper than 91.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.88 | ||
| EV/EBITDA | 16.9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)160.29
EPS Next 2Y-2.55%
EPS Next 3Y2.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.74%, LHX has a reasonable but not impressive dividend return.
LHX's Dividend Yield is rather good when compared to the industry average which is at 1.18. LHX pays more dividend than 91.18% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, LHX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
On average, the dividend of LHX grows each year by 16.34%, which is quite nice.
LHX has been paying a dividend for at least 10 years, so it has a reliable track record.
LHX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.34%
Div Incr Years21
Div Non Decr Years24
5.3 Sustainability
52.68% of the earnings are spent on dividend by LHX. This is a bit on the high side, but may be sustainable.
LHX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.68%
EPS Next 2Y-2.55%
EPS Next 3Y2.59%
276.17
+0.4 (+0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.11%
Inst Owner Change-4.14%
Ins Owners0.32%
Ins Owner Change3.76%
Market Cap51.67B
Analysts80
Price Target306.61 (11.02%)
Short Float %1.47%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend4.56
Dividend Growth(5Y)16.34%
DP52.68%
Div Incr Years21
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.63%
Min EPS beat(2)2.95%
Max EPS beat(2)10.32%
EPS beat(4)4
Avg EPS beat(4)3.83%
Min EPS beat(4)0.54%
Max EPS beat(4)10.32%
EPS beat(8)8
Avg EPS beat(8)3.13%
EPS beat(12)8
Avg EPS beat(12)1.57%
EPS beat(16)11
Avg EPS beat(16)1.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)0.95%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)0.95%
Revenue beat(8)3
Avg Revenue beat(8)-0.1%
Revenue beat(12)6
Avg Revenue beat(12)0.78%
Revenue beat(16)6
Avg Revenue beat(16)-0.43%
PT rev (1m)9.65%
PT rev (3m)16.73%
EPS NQ rev (1m)-4.93%
EPS NQ rev (3m)-7.95%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.01 | ||
| Fwd PE | 22.18 | ||
| P/S | 2.42 | ||
| P/FCF | 23.88 | ||
| P/OCF | 20.61 | ||
| P/B | 2.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.9 |
EPS(TTM)12
EY4.35%
EPS(NY)12.45
Fwd EY4.51%
FCF(TTM)11.57
FCFY4.19%
OCF(TTM)13.4
OCFY4.85%
SpS114.24
BVpS103.04
TBVpS-44.66
PEG (NY)N/A
PEG (5Y)160.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 8.8% | ||
| ROCE | 7.17% | ||
| ROIC | 5.51% | ||
| ROICexc | 5.58% | ||
| ROICexgc | 28.32% | ||
| OM | 11.38% | ||
| PM (TTM) | 7.94% | ||
| GM | 25.74% | ||
| FCFM | 10.12% |
ROA(3y)3.23%
ROA(5y)3.61%
ROE(3y)6.66%
ROE(5y)7%
ROIC(3y)5.34%
ROIC(5y)5.33%
ROICexc(3y)5.46%
ROICexc(5y)5.48%
ROICexgc(3y)34.15%
ROICexgc(5y)35.26%
ROCE(3y)6.89%
ROCE(5y)6.83%
ROICexcg growth 3Y-9.8%
ROICexcg growth 5Y-16.22%
ROICexc growth 3Y-3.5%
ROICexc growth 5Y-14.2%
OM growth 3Y-4.16%
OM growth 5Y-7.3%
PM growth 3Y-12.08%
PM growth 5Y-12.74%
GM growth 3Y-4.96%
GM growth 5Y-5.47%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 3.24 | ||
| Cap/Depr | 27.35% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68% | ||
| Profit Quality | 127.52% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.27 |
F-Score7
WACC9.64%
ROIC/WACC0.57
Cap/Depr(3y)32.34%
Cap/Depr(5y)33.61%
Cap/Sales(3y)1.9%
Cap/Sales(5y)1.93%
Profit Quality(3y)152.3%
Profit Quality(5y)160.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.54%
EPS 3Y0.41%
EPS 5Y0.14%
EPS Q2Q%-14.2%
EPS Next Y-18.9%
EPS Next 2Y-2.55%
EPS Next 3Y2.59%
EPS Next 5Y8.12%
Revenue 1Y (TTM)2.93%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%2.4%
Revenue Next Year2.18%
Revenue Next 2Y3.97%
Revenue Next 3Y4.46%
Revenue Next 5Y4.75%
EBIT growth 1Y5.78%
EBIT growth 3Y1.77%
EBIT growth 5Y16.51%
EBIT Next Year27.22%
EBIT Next 3Y13.21%
EBIT Next 5Y4.79%
FCF growth 1Y17.93%
FCF growth 3Y-2.84%
FCF growth 5Y16%
OCF growth 1Y17.48%
OCF growth 3Y-1.61%
OCF growth 5Y16.65%