L3HARRIS TECHNOLOGIES INC (LHX) Stock Fundamental Analysis

NYSE:LHX • US5024311095

356.14 USD
-2.56 (-0.71%)
At close: Feb 20, 2026
356 USD
-0.14 (-0.04%)
After Hours: 2/20/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall LHX gets a fundamental rating of 5 out of 10. We evaluated LHX against 74 industry peers in the Aerospace & Defense industry. LHX scores excellent on profitability, but there are some minor concerns on its financial health. LHX has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year LHX was profitable.
  • In the past year LHX had a positive cash flow from operations.
  • Each year in the past 5 years LHX has been profitable.
  • In the past 5 years LHX always reported a positive cash flow from operatings.
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

  • With a decent Return On Assets value of 3.90%, LHX is doing good in the industry, outperforming 62.16% of the companies in the same industry.
  • The Return On Equity of LHX (8.18%) is better than 60.81% of its industry peers.
  • LHX has a Return On Invested Capital of 7.91%. This is in the better half of the industry: LHX outperforms 67.57% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for LHX is below the industry average of 9.00%.
  • The last Return On Invested Capital (7.91%) for LHX is above the 3 year average (6.43%), which is a sign of increasing profitability.
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 68.92% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LHX has grown nicely.
  • LHX has a better Operating Margin (13.83%) than 78.38% of its industry peers.
  • In the last couple of years the Operating Margin of LHX has grown nicely.
  • The Gross Margin of LHX (25.73%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of LHX has declined.
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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5

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LHX is destroying value.
  • The number of shares outstanding for LHX has been reduced compared to 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

  • LHX has an Altman-Z score of 2.81. 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.
  • With a Altman-Z score value of 2.81, LHX perfoms like the industry average, outperforming 40.54% of the companies in the same industry.
  • 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.
  • With a decent Debt to FCF ratio value of 4.14, LHX is doing good in the industry, outperforming 77.03% of the companies in the same industry.
  • A Debt/Equity ratio of 0.53 indicates that LHX is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.53, LHX perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 4.14
Altman-Z 2.81
ROIC/WACC0.82
WACC9.68%
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

  • LHX has a Current Ratio of 1.19. This is a normal value and indicates that LHX is financially healthy and should not expect problems in meeting its short term obligations.
  • LHX has a worse Current ratio (1.19) than 78.38% of its industry peers.
  • LHX has a Quick Ratio of 1.02. This is a normal value and indicates that LHX is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.02, LHX is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The earnings per share for LHX have decreased strongly by -18.00% in the last year.
  • LHX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.53% yearly.
  • The Revenue has been growing slightly by 2.53% in the past year.
  • The Revenue has been growing slightly by 3.74% on average over the past years.
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 9.77% on average per year.
  • Based on estimates for the next years, LHX will show a small growth in Revenue. The Revenue will grow by 6.06% on average per year.
EPS Next Y11.64%
EPS Next 2Y14.25%
EPS Next 3Y14.27%
EPS Next 5Y9.77%
Revenue Next Year6.7%
Revenue Next 2Y7%
Revenue Next 3Y6.76%
Revenue Next 5Y6.06%

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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 5B 10B 15B 20B 25B
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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5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 33.13, the valuation of LHX can be described as expensive.
  • LHX's Price/Earnings ratio is a bit cheaper when compared to the industry. LHX is cheaper than 79.73% of the companies in the same industry.
  • LHX is valuated rather expensively when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 29.68, LHX can be considered very expensive at the moment.
  • LHX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LHX is cheaper than 75.68% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of LHX to the average of the S&P500 Index (28.02), we can say LHX is valued inline with the index average.
Industry RankSector Rank
PE 33.13
Fwd PE 29.68
LHX Price Earnings VS Forward Price EarningsLHX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, LHX is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, LHX is valued cheaply inside the industry as 90.54% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 24.84
EV/EBITDA 18.05
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 14.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.85
PEG (5Y)N/A
EPS Next 2Y14.25%
EPS Next 3Y14.27%

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

6

5. Dividend

5.1 Amount

  • LHX has a Yearly Dividend Yield of 1.39%.
  • Compared to an average industry Dividend Yield of 0.34, LHX pays a better dividend. On top of this LHX pays more dividend than 94.59% of the companies listed in the same industry.
  • LHX's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.39%

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.
  • The dividend of LHX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.23%
EPS Next 2Y14.25%
EPS Next 3Y14.27%
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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L3HARRIS TECHNOLOGIES INC

NYSE:LHX (2/20/2026, 8:04:00 PM)

After market: 356 -0.14 (-0.04%)

356.14

-2.56 (-0.71%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners89.22%
Inst Owner Change-0.51%
Ins Owners0.32%
Ins Owner Change0.43%
Market Cap66.62B
Revenue(TTM)21.86B
Net Income(TTM)1.61B
Analysts80.8
Price Target383.96 (7.81%)
Short Float %1.43%
Short Ratio1.91
Dividend
Industry RankSector Rank
Dividend Yield 1.39%
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)9.78%
PT rev (3m)11.87%
EPS NQ rev (1m)-6.92%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)-4.67%
EPS NY rev (3m)-4.07%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.04%
Valuation
Industry RankSector Rank
PE 33.13
Fwd PE 29.68
P/S 3.05
P/FCF 24.84
P/OCF 21.45
P/B 3.39
P/tB N/A
EV/EBITDA 18.05
EPS(TTM)10.75
EY3.02%
EPS(NY)12
Fwd EY3.37%
FCF(TTM)14.34
FCFY4.03%
OCF(TTM)16.61
OCFY4.66%
SpS116.89
BVpS104.97
TBVpS-36.8
PEG (NY)2.85
PEG (5Y)N/A
Graham Number159.34
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 2.81
F-Score8
WACC9.68%
ROIC/WACC0.82
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 Y11.64%
EPS Next 2Y14.25%
EPS Next 3Y14.27%
EPS Next 5Y9.77%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y8.62%
Revenue growth 5Y3.74%
Sales Q2Q%2.26%
Revenue Next Year6.7%
Revenue Next 2Y7%
Revenue Next 3Y6.76%
Revenue Next 5Y6.06%
EBIT growth 1Y29.01%
EBIT growth 3Y13.27%
EBIT growth 5Y8.65%
EBIT Next Year25.66%
EBIT Next 3Y4.12%
EBIT Next 5Y9.3%
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 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 5 / 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 7 / 10.


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

The Price/Earnings (PE) ratio for L3HARRIS TECHNOLOGIES INC (LHX) is 33.13 and the Price/Book (PB) ratio is 3.39.


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%.