L3HARRIS TECHNOLOGIES INC (LHX) Stock Fundamental Analysis
NYSE:LHX - New York Stock Exchange, Inc. - US5024311095 - Common Stock - Currency: USD
Taking everything into account, LHX scores 4 out of 10 in our fundamental rating. LHX was compared to 67 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
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.
1.2 Ratios
LHX's Return On Assets of 4.11% is fine compared to the rest of the industry. LHX outperforms 62.69% of its industry peers.
The Return On Equity of LHX (8.80%) is better than 62.69% of its industry peers.
With a Return On Invested Capital value of 5.51%, LHX perfoms like the industry average, outperforming 49.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LHX is below the industry average of 8.42%.
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
LHX has a Profit Margin of 7.94%. This is in the better half of the industry: LHX outperforms 71.64% of its industry peers.
LHX's Profit Margin has declined in the last couple of years.
LHX has a Operating Margin of 11.38%. This is in the better half of the industry: LHX outperforms 76.12% of its industry peers.
LHX's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 25.74%, LHX perfoms like the industry average, outperforming 55.22% of the companies in the same industry.
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
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.
Compared to 5 years ago, LHX has more shares outstanding
Compared to 1 year ago, LHX has an improved debt to assets ratio.
2.2 Solvency
LHX has an Altman-Z score of 2.28. 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.
LHX has a worse Altman-Z score (2.28) than 67.16% of its industry peers.
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.
LHX has a better Debt to FCF ratio (5.59) than 68.66% 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.
The Debt to Equity ratio of LHX (0.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.57
WACC9.68%
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's Current ratio of 1.04 is on the low side compared to the rest of the industry. LHX is outperformed by 82.09% of its industry peers.
A Quick Ratio of 0.87 indicates that LHX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, LHX is doing worse than 71.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
LHX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.54%.
LHX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.14% yearly.
Looking at the last year, LHX shows a small growth in Revenue. The Revenue has grown by 2.93% in the last year.
The Revenue has been growing by 25.68% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, LHX will show a small growth in Earnings Per Share. The EPS will grow by 6.95% on average per year.
LHX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
EPS Next Y-19.16%
EPS Next 2Y-3.19%
EPS Next 3Y1.91%
EPS Next 5Y6.95%
Revenue Next Year1.98%
Revenue Next 2Y3.91%
Revenue Next 3Y4.41%
Revenue Next 5Y4.23%
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
With a Price/Earnings ratio of 23.19, LHX is valued on the expensive side.
LHX's Price/Earnings ratio is rather cheap when compared to the industry. LHX is cheaper than 85.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of LHX to the average of the S&P500 Index (27.03), we can say LHX is valued inline with the index average.
The Price/Forward Earnings ratio is 22.64, which indicates a rather expensive current valuation of LHX.
Based on the Price/Forward Earnings ratio, LHX is valued a bit cheaper than 76.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.28. LHX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 22.64 |
4.2 Price Multiples
LHX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LHX is cheaper than 76.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LHX is valued cheaper than 92.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.05 | ||
| EV/EBITDA | 16.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)161.48
EPS Next 2Y-3.19%
EPS Next 3Y1.91%
5. Dividend
5.1 Amount
LHX has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.16, LHX pays a better dividend. On top of this LHX pays more dividend than 92.54% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, LHX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.34%
Div Incr Years21
Div Non Decr Years24
5.3 Sustainability
LHX pays out 52.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of LHX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.68%
EPS Next 2Y-3.19%
EPS Next 3Y1.91%
278.22
+0.16 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.02%
Inst Owner Change-1.14%
Ins Owners0.32%
Ins Owner Change3.76%
Market Cap52.05B
Analysts80
Price Target279.63 (0.51%)
Short Float %1.89%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)4.22%
PT rev (3m)7.47%
EPS NQ rev (1m)-4.86%
EPS NQ rev (3m)-7.7%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-1.17%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 22.64 | ||
| P/S | 2.44 | ||
| P/FCF | 24.05 | ||
| P/OCF | 20.76 | ||
| P/B | 2.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.99 |
EPS(TTM)12
EY4.31%
EPS(NY)12.29
Fwd EY4.42%
FCF(TTM)11.57
FCFY4.16%
OCF(TTM)13.4
OCFY4.82%
SpS114.24
BVpS103.04
TBVpS-44.66
PEG (NY)N/A
PEG (5Y)161.48
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 | 2.28 |
F-Score7
WACC9.68%
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-19.16%
EPS Next 2Y-3.19%
EPS Next 3Y1.91%
EPS Next 5Y6.95%
Revenue 1Y (TTM)2.93%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%2.4%
Revenue Next Year1.98%
Revenue Next 2Y3.91%
Revenue Next 3Y4.41%
Revenue Next 5Y4.23%
EBIT growth 1Y5.78%
EBIT growth 3Y1.77%
EBIT growth 5Y16.51%
EBIT Next Year26.62%
EBIT Next 3Y12.57%
EBIT Next 5Y4.68%
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%