L3HARRIS TECHNOLOGIES INC (LHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LHX - US5024311095 - Common Stock
281.65 USD
+3.15 (+1.13%)
281.65 USD
0 (0%)
Taking everything into account, LHX scores 4 out of 10 in our fundamental rating. LHX was compared to 72 industry peers in the Aerospace & Defense industry. While LHX is still in line with the averages on profitability rating, there are concerns on its financial health. LHX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LHX was profitable.
LHX had a positive operating cash flow in the past year.
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
LHX's Return On Assets of 4.29% is fine compared to the rest of the industry. LHX outperforms 63.89% of its industry peers.
LHX has a better Return On Equity (9.01%) than 63.89% of its industry peers.
LHX's Return On Invested Capital of 5.62% 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 8.58%.
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 70.83% of its industry peers.
LHX's Profit Margin has declined in the last couple of years.
LHX has a better Operating Margin (11.49%) than 76.39% of its industry peers.
In the last couple of years the Operating Margin of LHX has declined.
LHX's Gross Margin of 25.65% is in line compared to the rest of the industry. LHX outperforms 51.39% 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.
LHX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LHX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.36 indicates that LHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LHX (2.36) is worse than 68.06% 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 65.28% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that LHX is somewhat dependend on debt financing.
LHX has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: LHX underperforms 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.59
WACC9.47%
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: 81.94% of the companies in the same industry are doing better.
A Quick Ratio of 0.95 indicates that LHX may have some problems paying its short term obligations.
The Quick ratio of LHX (0.95) is worse than 76.39% 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%.
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.
Based on estimates for the next years, LHX will show a small growth in Revenue. The Revenue will grow by 5.18% on average per year.
EPS Next Y-17.89%
EPS Next 2Y-2.21%
EPS Next 3Y3.8%
EPS Next 5Y9.01%
Revenue Next Year3.15%
Revenue Next 2Y4.57%
Revenue Next 3Y4.99%
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
LHX is valuated rather expensively with a Price/Earnings ratio of 24.79.
Based on the Price/Earnings ratio, LHX is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. LHX is around the same levels.
LHX is valuated rather expensively with a Price/Forward Earnings ratio of 22.47.
Based on the Price/Forward Earnings ratio, LHX is valued cheaper than 80.56% of the companies in the same industry.
LHX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.79 | ||
| Fwd PE | 22.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LHX indicates a somewhat cheap valuation: LHX is cheaper than 77.78% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LHX indicates a rather cheap valuation: LHX is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.89 | ||
| EV/EBITDA | 16.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)172.68
EPS Next 2Y-2.21%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
LHX has a Yearly Dividend Yield of 1.71%.
LHX's Dividend Yield is rather good when compared to the industry average which is at 1.12. LHX pays more dividend than 93.06% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, LHX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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 3Y3.8%
281.65
+3.15 (+1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.19%
Inst Owner Change3.64%
Ins Owners0.32%
Ins Owner Change0.31%
Market Cap52.68B
Revenue(TTM)21.74B
Net Income(TTM)1.76B
Analysts79.23
Price Target343.22 (21.86%)
Short Float %1.31%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend4.56
Dividend Growth(5Y)16.34%
DP51.11%
Div Incr Years21
Div Non Decr Years24
Ex-Date
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)4.27%
PT rev (3m)11.94%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-0.62%
EPS NY rev (1m)0.44%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.79 | ||
| Fwd PE | 22.47 | ||
| P/S | 2.42 | ||
| P/FCF | 27.89 | ||
| P/OCF | 23.18 | ||
| P/B | 2.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.88 |
EPS(TTM)11.36
EY4.03%
EPS(NY)12.54
Fwd EY4.45%
FCF(TTM)10.1
FCFY3.59%
OCF(TTM)12.15
OCFY4.31%
SpS116.23
BVpS104.42
TBVpS-42.29
PEG (NY)N/A
PEG (5Y)172.68
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 | 2.36 |
F-Score7
WACC9.47%
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-17.89%
EPS Next 2Y-2.21%
EPS Next 3Y3.8%
EPS Next 5Y9.01%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%6.93%
Revenue Next Year3.15%
Revenue Next 2Y4.57%
Revenue Next 3Y4.99%
Revenue Next 5Y5.18%
EBIT growth 1Y7.62%
EBIT growth 3Y1.77%
EBIT growth 5Y16.51%
EBIT Next Year27.03%
EBIT Next 3Y13.94%
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.
What is the valuation status for LHX stock?
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.
How financially healthy is L3HARRIS TECHNOLOGIES INC?
The financial health rating of L3HARRIS TECHNOLOGIES INC (LHX) is 3 / 10.
What is the expected EPS growth for L3HARRIS TECHNOLOGIES INC (LHX) stock?
The Earnings per Share (EPS) of L3HARRIS TECHNOLOGIES INC (LHX) is expected to decline by -17.89% in the next year.