L3HARRIS TECHNOLOGIES INC (LHX) Stock Fundamental Analysis
USA - NYSE:LHX - US5024311095 - Common Stock
289.39 USD
+1.02 (+0.35%)
289.39 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to LHX. LHX was compared to 72 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 has a decent growth rate and is not valued too expensively.
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 has a Return On Assets of 4.29%. This is in the better half of the industry: LHX outperforms 63.89% of its industry peers.
LHX's Return On Equity of 9.01% is fine compared to the rest of the industry. LHX outperforms 65.28% of its industry peers.
With a Return On Invested Capital value of 5.62%, LHX perfoms like the industry average, outperforming 50.00% 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 8.50%.
The 3 year average ROIC (5.34%) for LHX is below the current ROIC(5.62%), indicating increased profibility in the last year.
| 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
LHX has a Profit Margin of 8.09%. This is in the better half of the industry: LHX outperforms 70.83% of its industry peers.
LHX's Profit Margin has declined in the last couple of years.
The Operating Margin of LHX (11.49%) is better than 76.39% of its industry peers.
LHX's Operating Margin has declined in the last couple of years.
LHX has a Gross Margin (25.65%) which is in line with its industry peers.
LHX's Gross Margin has declined in the last couple of years.
| 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
LHX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LHX has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LHX has been increased compared to 5 years ago.
LHX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.41 indicates that LHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LHX (2.41) is worse than 63.89% 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's Debt to FCF ratio of 6.21 is fine compared to the rest of the industry. LHX outperforms 63.89% 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 (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.59
WACC9.61%
2.3 Liquidity
A Current Ratio of 1.14 indicates that LHX should not have too much problems paying its short term obligations.
LHX has a Current ratio of 1.14. This is in the lower half of the industry: LHX underperforms 79.17% of its industry peers.
A Quick Ratio of 0.95 indicates that LHX may have some problems paying its short term obligations.
With a Quick ratio value of 0.95, LHX is not doing good in the industry: 73.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for LHX have decreased strongly by -12.55% in the last year.
The Earnings Per Share has been growing slightly by 0.15% 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 5Y0.15%
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 9.15% 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 5.06% on average per year.
EPS Next Y-18.26%
EPS Next 2Y-2.31%
EPS Next 3Y3.68%
EPS Next 5Y9.15%
Revenue Next Year2.78%
Revenue Next 2Y4.38%
Revenue Next 3Y4.85%
Revenue Next 5Y5.06%
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 25.47 indicates a quite expensive valuation of LHX.
80.56% of the companies in the same industry are more expensive than LHX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LHX to the average of the S&P500 Index (25.89), we can say LHX is valued inline with the index average.
The Price/Forward Earnings ratio is 23.13, which indicates a rather expensive current valuation of LHX.
Based on the Price/Forward Earnings ratio, LHX is valued a bit cheaper than 75.00% of the companies in the same industry.
LHX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 23.13 |
4.2 Price Multiples
73.61% of the companies in the same industry are more expensive than LHX, based on the Enterprise Value to EBITDA ratio.
83.33% 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 | 28.66 | ||
| EV/EBITDA | 17.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)166.52
EPS Next 2Y-2.31%
EPS Next 3Y3.68%
5. Dividend
5.1 Amount
LHX has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 1.12, LHX pays a better dividend. On top of this LHX pays more dividend than 93.06% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, LHX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of LHX is nicely growing with an annual growth rate of 16.34%!
LHX has paid a dividend for at least 10 years, which is 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 51.11% 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.
DP51.11%
EPS Next 2Y-2.31%
EPS Next 3Y3.68%
289.39
+1.02 (+0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners90.23%
Inst Owner Change-1.6%
Ins Owners0.32%
Ins Owner Change0.2%
Market Cap54.14B
Revenue(TTM)21.74B
Net Income(TTM)1.76B
Analysts79.23
Price Target329.16 (13.74%)
Short Float %1.34%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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)7.45%
PT rev (3m)7.35%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)0.79%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)1.22%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 23.13 | ||
| P/S | 2.49 | ||
| P/FCF | 28.66 | ||
| P/OCF | 23.82 | ||
| P/B | 2.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.38 |
EPS(TTM)11.36
EY3.93%
EPS(NY)12.51
Fwd EY4.32%
FCF(TTM)10.1
FCFY3.49%
OCF(TTM)12.15
OCFY4.2%
SpS116.2
BVpS104.4
TBVpS-42.28
PEG (NY)N/A
PEG (5Y)166.52
Graham Number163.35
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 | 2.41 |
F-Score7
WACC9.61%
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 5Y0.15%
EPS Q2Q%-19.16%
EPS Next Y-18.26%
EPS Next 2Y-2.31%
EPS Next 3Y3.68%
EPS Next 5Y9.15%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%6.93%
Revenue Next Year2.78%
Revenue Next 2Y4.38%
Revenue Next 3Y4.85%
Revenue Next 5Y5.06%
EBIT growth 1Y7.62%
EBIT growth 3Y1.77%
EBIT growth 5Y16.51%
EBIT Next Year27.22%
EBIT Next 3Y13.21%
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 -18.26% in the next year.