L3HARRIS TECHNOLOGIES INC (LHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LHX - US5024311095 - Common Stock
304.48 USD
+10.91 (+3.72%)
302.24 USD
-2.24 (-0.74%)
We assign a fundamental rating of 4 out of 10 to LHX. LHX was compared to 71 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.
LHX had a positive operating cash flow in the past year.
In the past 5 years LHX has always been profitable.
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 4.29%, LHX is doing good in the industry, outperforming 64.79% of the companies in the same industry.
LHX's Return On Equity of 9.01% is fine compared to the rest of the industry. LHX outperforms 63.38% of its industry peers.
The Return On Invested Capital of LHX (5.62%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for LHX is below the industry average of 8.60%.
The last Return On Invested Capital (5.62%) for LHX is above the 3 year average (5.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 9.01% | ||
| ROIC | 5.62% |
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
LHX has a better Profit Margin (8.09%) than 70.42% of its industry peers.
LHX's Profit Margin has declined in the last couple of years.
The Operating Margin of LHX (11.49%) is better than 76.06% of its industry peers.
In the last couple of years the Operating Margin of LHX has declined.
LHX has a Gross Margin of 25.65%. This is comparable to the rest of the industry: LHX outperforms 52.11% of its industry peers.
In the last couple of years the Gross Margin of LHX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.49% | ||
| PM (TTM) | 8.09% | ||
| GM | 25.65% |
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.
Compared to 1 year ago, LHX has about the same amount of shares outstanding.
The number of shares outstanding for LHX has been increased compared to 5 years ago.
Compared to 1 year ago, LHX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.44 indicates that LHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
LHX has a worse Altman-Z score (2.44) than 66.20% of its industry peers.
The Debt to FCF ratio of LHX is 6.21, which is on the high side as it means it would take LHX, 6.21 years of fcf income to pay off all of its debts.
LHX has a better Debt to FCF ratio (6.21) than 64.79% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that LHX is somewhat dependend on debt financing.
The Debt to Equity ratio of LHX (0.60) is worse than 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.59
WACC9.54%
2.3 Liquidity
LHX has a Current Ratio of 1.14. This is a normal value and indicates that LHX is financially healthy and should not expect problems in meeting its short term obligations.
LHX's Current ratio of 1.14 is on the low side compared to the rest of the industry. LHX is outperformed by 81.69% of its industry peers.
A Quick Ratio of 0.95 indicates that LHX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, LHX is doing worse than 76.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
LHX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.55%.
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 2.83%.
The Revenue has been growing by 25.68% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-12.55%
EPS 3Y0.41%
EPS 5Y0.14%
EPS Q2Q%-19.16%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%6.93%
3.2 Future
The Earnings Per Share is expected to grow by 9.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.18% on average over the next years.
EPS Next Y-17.85%
EPS Next 2Y-2.21%
EPS Next 3Y3.66%
EPS Next 5Y9.01%
Revenue Next Year3.16%
Revenue Next 2Y4.57%
Revenue Next 3Y5%
Revenue Next 5Y5.18%
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
A Price/Earnings ratio of 26.80 indicates a quite expensive valuation of LHX.
Based on the Price/Earnings ratio, LHX is valued cheaply inside the industry as 81.69% of the companies are valued more expensively.
LHX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
LHX is valuated rather expensively with a Price/Forward Earnings ratio of 24.29.
84.51% of the companies in the same industry are more expensive than LHX, based on the Price/Forward Earnings ratio.
LHX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 24.29 |
4.2 Price Multiples
77.46% of the companies in the same industry are more expensive than LHX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LHX is valued cheaply inside the industry as 85.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.15 | ||
| EV/EBITDA | 17.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)186.68
EPS Next 2Y-2.21%
EPS Next 3Y3.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, LHX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.39, LHX pays a better dividend. On top of this LHX pays more dividend than 94.37% of the companies listed in the same industry.
LHX's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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
51.11% 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.
DP51.11%
EPS Next 2Y-2.21%
EPS Next 3Y3.66%
304.48
+10.91 (+3.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.19%
Inst Owner Change3.66%
Ins Owners0.32%
Ins Owner Change0.31%
Market Cap56.95B
Revenue(TTM)21.74B
Net Income(TTM)1.76B
Analysts79.23
Price Target344.21 (13.05%)
Short Float %1.43%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend4.56
Dividend Growth(5Y)16.34%
DP51.11%
Div Incr Years21
Div Non Decr Years24
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.04%
Min EPS beat(2)3.77%
Max EPS beat(2)10.32%
EPS beat(4)4
Avg EPS beat(4)4.4%
Min EPS beat(4)0.54%
Max EPS beat(4)10.32%
EPS beat(8)8
Avg EPS beat(8)3.07%
EPS beat(12)9
Avg EPS beat(12)2.28%
EPS beat(16)12
Avg EPS beat(16)1.55%
Revenue beat(2)2
Avg Revenue beat(2)1.24%
Min Revenue beat(2)0.95%
Max Revenue beat(2)1.52%
Revenue beat(4)2
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)1.52%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)7
Avg Revenue beat(12)1.29%
Revenue beat(16)7
Avg Revenue beat(16)0.14%
PT rev (1m)0.29%
PT rev (3m)12.26%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0.49%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 24.29 | ||
| P/S | 2.62 | ||
| P/FCF | 30.15 | ||
| P/OCF | 25.06 | ||
| P/B | 2.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.63 |
EPS(TTM)11.36
EY3.73%
EPS(NY)12.54
Fwd EY4.12%
FCF(TTM)10.1
FCFY3.32%
OCF(TTM)12.15
OCFY3.99%
SpS116.23
BVpS104.42
TBVpS-42.29
PEG (NY)N/A
PEG (5Y)186.68
Graham Number163.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 9.01% | ||
| ROCE | 7.27% | ||
| ROIC | 5.62% | ||
| ROICexc | 5.62% | ||
| ROICexgc | 25.78% | ||
| OM | 11.49% | ||
| PM (TTM) | 8.09% | ||
| GM | 25.65% | ||
| FCFM | 8.69% |
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%
ROICexgc growth 3Y-9.8%
ROICexgc 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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.21 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 30.99% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.81% | ||
| Profit Quality | 107.39% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.44 |
F-Score7
WACC9.54%
ROIC/WACC0.59
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)-12.55%
EPS 3Y0.41%
EPS 5Y0.14%
EPS Q2Q%-19.16%
EPS Next Y-17.85%
EPS Next 2Y-2.21%
EPS Next 3Y3.66%
EPS Next 5Y9.01%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%6.93%
Revenue Next Year3.16%
Revenue Next 2Y4.57%
Revenue Next 3Y5%
Revenue Next 5Y5.18%
EBIT growth 1Y7.62%
EBIT growth 3Y1.77%
EBIT growth 5Y16.51%
EBIT Next Year25.54%
EBIT Next 3Y13.25%
EBIT Next 5Y5.51%
FCF growth 1Y10.73%
FCF growth 3Y-2.84%
FCF growth 5Y16%
OCF growth 1Y8.81%
OCF growth 3Y-1.61%
OCF growth 5Y16.65%
L3HARRIS TECHNOLOGIES INC / LHX FAQ
What is the ChartMill fundamental rating of L3HARRIS TECHNOLOGIES INC (LHX) stock?
ChartMill assigns a fundamental rating of 4 / 10 to LHX.
Can you provide the valuation status for L3HARRIS TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 4 / 10 to L3HARRIS TECHNOLOGIES INC (LHX). This can be considered as Fairly Valued.
How profitable is L3HARRIS TECHNOLOGIES INC (LHX) stock?
L3HARRIS TECHNOLOGIES INC (LHX) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for LHX stock?
The Price/Earnings (PE) ratio for L3HARRIS TECHNOLOGIES INC (LHX) is 26.8 and the Price/Book (PB) ratio is 2.92.
Is the dividend of L3HARRIS TECHNOLOGIES INC sustainable?
The dividend rating of L3HARRIS TECHNOLOGIES INC (LHX) is 6 / 10 and the dividend payout ratio is 51.11%.