L3HARRIS TECHNOLOGIES INC (LHX) Stock Fundamental Analysis
USA - NYSE:LHX - US5024311095 - Common Stock
287.63 USD
-12.36 (-4.12%)
Taking everything into account, LHX scores 4 out of 10 in our fundamental rating. LHX was compared to 69 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 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.
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
The Return On Assets of LHX (4.11%) is better than 62.32% of its industry peers.
LHX has a Return On Equity of 8.80%. This is in the better half of the industry: LHX outperforms 63.77% of its industry peers.
LHX has a Return On Invested Capital (5.51%) which is in line with 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 8.33%.
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
With a decent Profit Margin value of 7.94%, LHX is doing good in the industry, outperforming 71.01% of the companies in the same industry.
In the last couple of years the Profit Margin of LHX has declined.
LHX has a Operating Margin of 11.38%. This is in the better half of the industry: LHX outperforms 76.81% of its industry peers.
In the last couple of years the Operating Margin of LHX has declined.
LHX has a Gross Margin of 25.74%. This is comparable to the rest of the industry: LHX outperforms 52.17% of its industry peers.
In the last couple of years the Gross Margin of LHX has declined.
| 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
LHX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LHX remains at a similar level compared to 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
LHX has an Altman-Z score of 2.39. 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.
Looking at the Altman-Z score, with a value of 2.39, LHX is doing worse than 66.67% of the companies in the same industry.
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.
The Debt to FCF ratio of LHX (5.59) is better than 71.01% 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.
With a Debt to Equity ratio value of 0.62, LHX is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.58
WACC9.47%
2.3 Liquidity
A Current Ratio of 1.04 indicates that LHX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.04, LHX is not doing good in the industry: 82.61% of the companies in the same industry are doing better.
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 72.46% 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.
LHX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.93%.
LHX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.68% yearly.
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
The Earnings Per Share is expected to grow by 8.12% 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 4.75% on average per year.
EPS Next Y-18.9%
EPS Next 2Y-2.55%
EPS Next 3Y2.59%
EPS Next 5Y8.12%
Revenue Next Year2.2%
Revenue Next 2Y4.01%
Revenue Next 3Y4.52%
Revenue Next 5Y4.75%
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
A Price/Earnings ratio of 23.97 indicates a rather expensive valuation of LHX.
85.51% of the companies in the same industry are more expensive than LHX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.49. LHX is around the same levels.
With a Price/Forward Earnings ratio of 23.10, LHX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LHX is valued a bit cheaper than 71.01% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. LHX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.97 | ||
| Fwd PE | 23.1 |
4.2 Price Multiples
73.91% 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 91.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.87 | ||
| EV/EBITDA | 18.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)166.94
EPS Next 2Y-2.55%
EPS Next 3Y2.59%
5. Dividend
5.1 Amount
LHX has a Yearly Dividend Yield of 1.61%. 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 91.30% of the companies listed in the same industry.
LHX's Dividend Yield is slightly below the S&P500 average, which is at 2.43.
| 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
LHX pays out 52.68% 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.
DP52.68%
EPS Next 2Y-2.55%
EPS Next 3Y2.59%
NYSE:LHX (10/15/2025, 12:52:02 PM)
287.63
-12.36 (-4.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners90.23%
Inst Owner Change-0.02%
Ins Owners0.32%
Ins Owner Change1.16%
Market Cap53.81B
Analysts79.23
Price Target306.33 (6.5%)
Short Float %1.4%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)-0.09%
PT rev (3m)14.18%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-4.86%
EPS NY rev (1m)0%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.97 | ||
| Fwd PE | 23.1 | ||
| P/S | 2.52 | ||
| P/FCF | 24.87 | ||
| P/OCF | 21.46 | ||
| P/B | 2.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.11 |
EPS(TTM)12
EY4.17%
EPS(NY)12.45
Fwd EY4.33%
FCF(TTM)11.57
FCFY4.02%
OCF(TTM)13.4
OCFY4.66%
SpS114.24
BVpS103.04
TBVpS-44.66
PEG (NY)N/A
PEG (5Y)166.94
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 | 2.39 |
F-Score7
WACC9.47%
ROIC/WACC0.58
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-18.9%
EPS Next 2Y-2.55%
EPS Next 3Y2.59%
EPS Next 5Y8.12%
Revenue 1Y (TTM)2.93%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%2.4%
Revenue Next Year2.2%
Revenue Next 2Y4.01%
Revenue Next 3Y4.52%
Revenue Next 5Y4.75%
EBIT growth 1Y5.78%
EBIT growth 3Y1.77%
EBIT growth 5Y16.51%
EBIT Next Year27.22%
EBIT Next 3Y13.21%
EBIT Next 5Y4.79%
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%