L3HARRIS TECHNOLOGIES INC (LHX) Fundamental Analysis & Valuation

NYSE:LHX • US5024311095

Current stock price

349.34 USD
-2.68 (-0.76%)
At close:
347.95 USD
-1.39 (-0.4%)
After Hours:

This LHX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. LHX Profitability Analysis

1.1 Basic Checks

  • LHX had positive earnings in the past year.
  • 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.
LHX Yearly Net Income VS EBIT VS OCF VS FCFLHX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • LHX has a Return On Assets (3.90%) which is in line with its industry peers.
  • LHX has a Return On Equity (8.18%) which is in line with its industry peers.
  • With a decent Return On Invested Capital value of 7.91%, LHX is doing good in the industry, outperforming 67.09% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for LHX is below the industry average of 9.24%.
  • The 3 year average ROIC (6.43%) for LHX is below the current ROIC(7.91%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.9%
ROE 8.18%
ROIC 7.91%
ROA(3y)3.47%
ROA(5y)3.78%
ROE(3y)7.47%
ROE(5y)7.55%
ROIC(3y)6.43%
ROIC(5y)6.5%
LHX Yearly ROA, ROE, ROICLHX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • Looking at the Profit Margin, with a value of 7.35%, LHX is in the better half of the industry, outperforming 68.35% of the companies in the same industry.
  • LHX's Profit Margin has improved in the last couple of years.
  • LHX has a Operating Margin of 13.83%. This is in the better half of the industry: LHX outperforms 75.95% of its industry peers.
  • In the last couple of years the Operating Margin of LHX has grown nicely.
  • Looking at the Gross Margin, with a value of 25.73%, LHX is in line with its industry, outperforming 54.43% of the companies in the same industry.
  • LHX's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 13.83%
PM (TTM) 7.35%
GM 25.73%
OM growth 3Y4.28%
OM growth 5Y4.73%
PM growth 3Y5.67%
PM growth 5Y3.61%
GM growth 3Y-3.78%
GM growth 5Y-2.48%
LHX Yearly Profit, Operating, Gross MarginsLHX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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4

2. LHX Health Analysis

2.1 Basic Checks

  • LHX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • LHX has less shares outstanding than it did 1 year ago.
  • LHX has less shares outstanding than it did 5 years ago.
  • LHX has a better debt/assets ratio than last year.
LHX Yearly Shares OutstandingLHX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
LHX Yearly Total Debt VS Total AssetsLHX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • An Altman-Z score of 2.79 indicates that LHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a Altman-Z score value of 2.79, LHX is not doing good in the industry: 60.76% of the companies in the same industry are doing better.
  • The Debt to FCF ratio of LHX is 4.14, which is a neutral value as it means it would take LHX, 4.14 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.14, LHX is in the better half of the industry, outperforming 77.22% of the companies in the same industry.
  • A Debt/Equity ratio of 0.53 indicates that LHX is somewhat dependend on debt financing.
  • LHX's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. LHX outperforms 51.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 4.14
Altman-Z 2.79
ROIC/WACC0.79
WACC10.08%
LHX Yearly LT Debt VS Equity VS FCFLHX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • A Current Ratio of 1.19 indicates that LHX should not have too much problems paying its short term obligations.
  • LHX has a Current ratio of 1.19. This is in the lower half of the industry: LHX underperforms 78.48% of its industry peers.
  • A Quick Ratio of 1.02 indicates that LHX should not have too much problems paying its short term obligations.
  • The Quick ratio of LHX (1.02) is worse than 70.89% of its industry peers.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 1.02
LHX Yearly Current Assets VS Current LiabilitesLHX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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4

3. LHX Growth Analysis

3.1 Past

  • The earnings per share for LHX have decreased strongly by -18.00% in the last year.
  • Measured over the past years, LHX shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.53% on average per year.
  • LHX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.53%.
  • Measured over the past years, LHX shows a small growth in Revenue. The Revenue has been growing by 3.74% on average per year.
EPS 1Y (TTM)-18%
EPS 3Y-5.85%
EPS 5Y-1.53%
EPS Q2Q%-17.58%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y8.62%
Revenue growth 5Y3.74%
Sales Q2Q%2.26%

3.2 Future

  • Based on estimates for the next years, LHX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.70% on average per year.
  • The Revenue is expected to grow by 6.77% on average over the next years.
EPS Next Y8.95%
EPS Next 2Y12.46%
EPS Next 3Y13.31%
EPS Next 5Y10.7%
Revenue Next Year6.56%
Revenue Next 2Y7%
Revenue Next 3Y7.13%
Revenue Next 5Y6.77%

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 accelerating.
LHX Yearly Revenue VS EstimatesLHX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
LHX Yearly EPS VS EstimatesLHX Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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4

4. LHX Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 32.50 indicates a quite expensive valuation of LHX.
  • Compared to the rest of the industry, the Price/Earnings ratio of LHX indicates a somewhat cheap valuation: LHX is cheaper than 64.56% of the companies listed in the same industry.
  • LHX is valuated rather expensively when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 29.83, LHX can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LHX indicates a somewhat cheap valuation: LHX is cheaper than 68.35% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of LHX to the average of the S&P500 Index (22.51), we can say LHX is valued slightly more expensively.
Industry RankSector Rank
PE 32.5
Fwd PE 29.83
LHX Price Earnings VS Forward Price EarningsLHX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, LHX is valued a bit cheaper than the industry average as 75.95% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, LHX is valued cheaply inside the industry as 89.87% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 24.33
EV/EBITDA 17.84
LHX Per share dataLHX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LHX does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of LHX may justify a higher PE ratio.
  • LHX's earnings are expected to grow with 13.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.63
PEG (5Y)N/A
EPS Next 2Y12.46%
EPS Next 3Y13.31%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. LHX Dividend Analysis

5.1 Amount

  • LHX has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
  • LHX's Dividend Yield is rather good when compared to the industry average which is at 0.36. LHX pays more dividend than 94.94% of the companies in the same industry.
  • LHX's Dividend Yield is slightly below the S&P500 average, which is at 1.90.
Industry RankSector Rank
Dividend Yield 1.37%

5.2 History

  • On average, the dividend of LHX grows each year by 15.97%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.97%
Div Incr Years21
Div Non Decr Years24
LHX Yearly Dividends per shareLHX Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • LHX pays out 56.23% of its income as dividend. 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.
DP56.23%
EPS Next 2Y12.46%
EPS Next 3Y13.31%
LHX Yearly Income VS Free CF VS DividendLHX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
LHX Dividend Payout.LHX Dividend Payout, showing the Payout Ratio.LHX Dividend Payout.PayoutRetained Earnings

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LHX Fundamentals: All Metrics, Ratios and Statistics

L3HARRIS TECHNOLOGIES INC

NYSE:LHX (3/26/2026, 8:04:00 PM)

After market: 347.95 -1.39 (-0.4%)

349.34

-2.68 (-0.76%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners89%
Inst Owner Change-0.49%
Ins Owners0.33%
Ins Owner Change5.02%
Market Cap65.25B
Revenue(TTM)21.86B
Net Income(TTM)1.61B
Analysts80.8
Price Target389.79 (11.58%)
Short Float %1.21%
Short Ratio1.42
Dividend
Industry RankSector Rank
Dividend Yield 1.37%
Yearly Dividend4.8
Dividend Growth(5Y)15.97%
DP56.23%
Div Incr Years21
Div Non Decr Years24
Ex-Date03-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.11%
Min EPS beat(2)2.44%
Max EPS beat(2)3.77%
EPS beat(4)4
Avg EPS beat(4)4.87%
Min EPS beat(4)2.44%
Max EPS beat(4)10.32%
EPS beat(8)8
Avg EPS beat(8)3.37%
EPS beat(12)10
Avg EPS beat(12)2.54%
EPS beat(16)12
Avg EPS beat(16)1.69%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)1.52%
Revenue beat(4)2
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)1.52%
Revenue beat(8)3
Avg Revenue beat(8)-0.58%
Revenue beat(12)6
Avg Revenue beat(12)0.66%
Revenue beat(16)7
Avg Revenue beat(16)0.18%
PT rev (1m)1.52%
PT rev (3m)13.57%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-5.84%
EPS NY rev (1m)-2.41%
EPS NY rev (3m)-6.57%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.54%
Valuation
Industry RankSector Rank
PE 32.5
Fwd PE 29.83
P/S 2.98
P/FCF 24.33
P/OCF 21.01
P/B 3.32
P/tB N/A
EV/EBITDA 17.84
EPS(TTM)10.75
EY3.08%
EPS(NY)11.71
Fwd EY3.35%
FCF(TTM)14.36
FCFY4.11%
OCF(TTM)16.63
OCFY4.76%
SpS117.06
BVpS105.12
TBVpS-36.86
PEG (NY)3.63
PEG (5Y)N/A
Graham Number159.46
Profitability
Industry RankSector Rank
ROA 3.9%
ROE 8.18%
ROCE 8.9%
ROIC 7.91%
ROICexc 8.17%
ROICexgc 42.13%
OM 13.83%
PM (TTM) 7.35%
GM 25.73%
FCFM 12.27%
ROA(3y)3.47%
ROA(5y)3.78%
ROE(3y)7.47%
ROE(5y)7.55%
ROIC(3y)6.43%
ROIC(5y)6.5%
ROICexc(3y)6.58%
ROICexc(5y)6.68%
ROICexgc(3y)35.28%
ROICexgc(5y)40.49%
ROCE(3y)7.36%
ROCE(5y)7.39%
ROICexgc growth 3Y-6.53%
ROICexgc growth 5Y2.04%
ROICexc growth 3Y5.88%
ROICexc growth 5Y7.67%
OM growth 3Y4.28%
OM growth 5Y4.73%
PM growth 3Y5.67%
PM growth 5Y3.61%
GM growth 3Y-3.78%
GM growth 5Y-2.48%
F-Score8
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 4.14
Debt/EBITDA 2.46
Cap/Depr 34.64%
Cap/Sales 1.94%
Interest Coverage 5.01
Cash Conversion 73.12%
Profit Quality 167%
Current Ratio 1.19
Quick Ratio 1.02
Altman-Z 2.79
F-Score8
WACC10.08%
ROIC/WACC0.79
Cap/Depr(3y)34.93%
Cap/Depr(5y)33.41%
Cap/Sales(3y)2.05%
Cap/Sales(5y)1.91%
Profit Quality(3y)148.15%
Profit Quality(5y)150.19%
High Growth Momentum
Growth
EPS 1Y (TTM)-18%
EPS 3Y-5.85%
EPS 5Y-1.53%
EPS Q2Q%-17.58%
EPS Next Y8.95%
EPS Next 2Y12.46%
EPS Next 3Y13.31%
EPS Next 5Y10.7%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y8.62%
Revenue growth 5Y3.74%
Sales Q2Q%2.26%
Revenue Next Year6.56%
Revenue Next 2Y7%
Revenue Next 3Y7.13%
Revenue Next 5Y6.77%
EBIT growth 1Y29.01%
EBIT growth 3Y13.27%
EBIT growth 5Y8.65%
EBIT Next Year26.95%
EBIT Next 3Y14.37%
EBIT Next 5Y9.2%
FCF growth 1Y24.69%
FCF growth 3Y12.06%
FCF growth 5Y2.06%
OCF growth 1Y21.38%
OCF growth 3Y12.91%
OCF growth 5Y2.17%

L3HARRIS TECHNOLOGIES INC / LHX Fundamental Analysis FAQ

What is the ChartMill fundamental rating of L3HARRIS TECHNOLOGIES INC (LHX) stock?

ChartMill assigns a fundamental rating of 5 / 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 6 / 10.


Can you provide the PE and PB ratios for LHX stock?

The Price/Earnings (PE) ratio for L3HARRIS TECHNOLOGIES INC (LHX) is 32.5 and the Price/Book (PB) ratio is 3.32.


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 56.23%.