L3HARRIS TECHNOLOGIES INC (LHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LHX - US5024311095 - Common Stock
356.02 USD
-4.28 (-1.19%)
356.02 USD
0 (0%)
LHX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 73 industry peers in the Aerospace & Defense industry. LHX has a medium profitability rating, but doesn't score so well on its financial health evaluation. LHX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- LHX had positive earnings in the past year.
- In the past year LHX had a positive cash flow from operations.
- Each year in the past 5 years LHX has 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 65.75% of the companies in the same industry.
- The Return On Equity of LHX (9.01%) is better than 63.01% of its industry peers.
- With a Return On Invested Capital value of 5.62%, LHX perfoms like the industry average, outperforming 50.68% of the companies in the same industry.
- LHX had an Average Return On Invested Capital over the past 3 years of 5.34%. This is below the industry average of 8.56%.
- 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
- The Profit Margin of LHX (8.09%) is better than 71.23% of its industry peers.
- LHX's Profit Margin has declined in the last couple of years.
- LHX's Operating Margin of 11.49% is fine compared to the rest of the industry. LHX outperforms 76.71% of its industry peers.
- LHX's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 25.65%, LHX is in line with its industry, outperforming 53.42% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LHX is destroying value.
- LHX has about the same amout of shares outstanding than it did 1 year ago.
- LHX has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for LHX has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.78 indicates that LHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- LHX has a Altman-Z score of 2.78. This is in the lower half of the industry: LHX underperforms 61.64% 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 61.64% of its industry peers.
- A Debt/Equity ratio of 0.60 indicates that LHX is somewhat dependend on debt financing.
- LHX has a worse Debt to Equity ratio (0.60) than 63.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.57
WACC9.91%
2.3 Liquidity
- A Current Ratio of 1.14 indicates that LHX should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.14, LHX is not doing good in the industry: 80.82% of the companies in the same industry are doing better.
- LHX has a Quick Ratio of 1.14. This is a bad value and indicates that LHX is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of LHX (0.95) is worse than 75.34% of its industry peers.
| 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%.
- The Earnings Per Share has been growing slightly by 0.14% on average over the past years.
- LHX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.83%.
- 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)-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
- LHX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.01% yearly.
- The Revenue is expected to grow by 5.18% on average over the next years.
EPS Next Y-17.9%
EPS Next 2Y-2.01%
EPS Next 3Y3.6%
EPS Next 5Y9.01%
Revenue Next Year3.17%
Revenue Next 2Y4.65%
Revenue Next 3Y5.19%
Revenue Next 5Y5.18%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 31.34, the valuation of LHX can be described as expensive.
- Based on the Price/Earnings ratio, LHX is valued cheaply inside the industry as 82.19% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, LHX is valued at the same level.
- LHX is valuated quite expensively with a Price/Forward Earnings ratio of 28.28.
- Based on the Price/Forward Earnings ratio, LHX is valued a bit cheaper than 79.45% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. LHX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.34 | ||
| Fwd PE | 28.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LHX is valued a bit cheaper than 73.97% of the companies in the same industry.
- 83.56% of the companies in the same industry are more expensive than LHX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.25 | ||
| EV/EBITDA | 20.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)218.28
EPS Next 2Y-2.01%
EPS Next 3Y3.6%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.35%, LHX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.34, LHX pays a better dividend. On top of this LHX pays more dividend than 93.15% of the companies listed in the same industry.
- LHX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
- LHX has been paying a dividend for at least 10 years, so it has a reliable track record.
- LHX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)N/A
Div Incr Years21
Div Non Decr Years24
5.3 Sustainability
- LHX pays out 51.11% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.11%
EPS Next 2Y-2.01%
EPS Next 3Y3.6%
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 31.34 and the Price/Book (PB) ratio is 3.41.
Is the dividend of L3HARRIS TECHNOLOGIES INC sustainable?
The dividend rating of L3HARRIS TECHNOLOGIES INC (LHX) is 5 / 10 and the dividend payout ratio is 51.11%.