L3HARRIS TECHNOLOGIES INC (LHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LHX - US5024311095 - Common Stock
293.57 USD
-1.9 (-0.64%)
293.55 USD
-0.02 (-0.01%)
LHX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. While LHX is still in line with the averages on profitability rating, there are concerns on its financial health. LHX has a correct valuation and a medium growth rate.
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.
1.2 Ratios
LHX's Return On Assets of 4.29% is fine compared to the rest of the industry. LHX outperforms 63.38% of its industry peers.
With a decent Return On Equity value of 9.01%, LHX is doing good in the industry, outperforming 63.38% of the companies in the same industry.
LHX's Return On Invested Capital of 5.62% is in line compared to the rest of the industry. LHX outperforms 49.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LHX is below the industry average of 8.60%.
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's Profit Margin of 8.09% is fine compared to the rest of the industry. LHX outperforms 70.42% of its industry peers.
LHX's Profit Margin has declined in the last couple of years.
LHX's Operating Margin of 11.49% is fine compared to the rest of the industry. LHX outperforms 76.06% of its industry peers.
In the last couple of years the Operating Margin of LHX has declined.
Looking at the Gross Margin, with a value of 25.65%, LHX is in line with its industry, outperforming 50.70% of the companies in the same industry.
LHX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.49% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LHX is destroying value.
The number of shares outstanding for LHX remains at a similar level compared to 1 year ago.
The number of shares outstanding for LHX has been increased compared to 5 years ago.
Compared to 1 year ago, LHX has an improved debt to assets ratio.
2.2 Solvency
LHX has an Altman-Z score of 2.45. 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 2.45, LHX is doing worse than 69.01% of the companies in the same industry.
LHX has a debt to FCF ratio of 6.21. This is a slightly negative value and a sign of low solvency as LHX would need 6.21 years to pay back of all of its debts.
LHX has a Debt to FCF ratio of 6.21. This is in the better half of the industry: LHX outperforms 64.79% of its industry peers.
LHX has a Debt/Equity ratio of 0.60. This is a neutral value indicating LHX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, LHX is not doing good in the industry: 66.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.58
WACC9.76%
2.3 Liquidity
LHX has a Current Ratio of 1.14. 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 Current ratio of 1.14. This is amonst the worse of the industry: LHX underperforms 83.10% of its industry peers.
A Quick Ratio of 0.95 indicates that LHX may have some problems paying its short term obligations.
LHX's Quick ratio of 0.95 is on the low side compared to the rest of the industry. LHX is outperformed by 77.46% of its industry peers.
| 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 0.14% 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 5Y0.14%
EPS Q2Q%-19.16%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%6.93%
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 9.01% on average per year.
The Revenue is expected to grow by 5.18% on average over the next years.
EPS Next Y-17.85%
EPS Next 2Y-2.21%
EPS Next 3Y3.66%
EPS Next 5Y9.01%
Revenue Next Year3.16%
Revenue Next 2Y4.57%
Revenue Next 3Y5%
Revenue Next 5Y5.18%
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
The Price/Earnings ratio is 25.84, which means the current valuation is very expensive for LHX.
Based on the Price/Earnings ratio, LHX is valued cheaper than 80.28% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. LHX is around the same levels.
With a Price/Forward Earnings ratio of 23.42, LHX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LHX is valued cheaply inside the industry as 81.69% of the companies are valued more expensively.
LHX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.84 | ||
| Fwd PE | 23.42 |
4.2 Price Multiples
78.87% of the companies in the same industry are more expensive than LHX, based on the Enterprise Value to EBITDA ratio.
LHX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LHX is cheaper than 85.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.07 | ||
| EV/EBITDA | 17.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)179.99
EPS Next 2Y-2.21%
EPS Next 3Y3.66%
5. Dividend
5.1 Amount
LHX has a Yearly Dividend Yield of 1.61%.
LHX's Dividend Yield is rather good when compared to the industry average which is at 0.39. LHX pays more dividend than 94.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, LHX has a dividend comparable with the average S&P500 company.
| 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 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 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-2.21%
EPS Next 3Y3.66%
293.57
-1.9 (-0.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.19%
Inst Owner Change3.66%
Ins Owners0.32%
Ins Owner Change0.31%
Market Cap54.91B
Revenue(TTM)21.74B
Net Income(TTM)1.76B
Analysts79.23
Price Target344.21 (17.25%)
Short Float %1.43%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend4.56
Dividend Growth(5Y)16.34%
DP51.11%
Div Incr Years21
Div Non Decr Years24
Ex-DateN/A
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)0.29%
PT rev (3m)12.26%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0.49%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.84 | ||
| Fwd PE | 23.42 | ||
| P/S | 2.53 | ||
| P/FCF | 29.07 | ||
| P/OCF | 24.16 | ||
| P/B | 2.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.73 |
EPS(TTM)11.36
EY3.87%
EPS(NY)12.54
Fwd EY4.27%
FCF(TTM)10.1
FCFY3.44%
OCF(TTM)12.15
OCFY4.14%
SpS116.23
BVpS104.42
TBVpS-42.29
PEG (NY)N/A
PEG (5Y)179.99
Graham Number163.37
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 | 2.45 |
F-Score7
WACC9.76%
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)-12.55%
EPS 3Y0.41%
EPS 5Y0.14%
EPS Q2Q%-19.16%
EPS Next Y-17.85%
EPS Next 2Y-2.21%
EPS Next 3Y3.66%
EPS Next 5Y9.01%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y6.18%
Revenue growth 5Y25.68%
Sales Q2Q%6.93%
Revenue Next Year3.16%
Revenue Next 2Y4.57%
Revenue Next 3Y5%
Revenue Next 5Y5.18%
EBIT growth 1Y7.62%
EBIT growth 3Y1.77%
EBIT growth 5Y16.51%
EBIT Next Year25.54%
EBIT Next 3Y13.25%
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.
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 5 / 10.
Can you provide the PE and PB ratios for LHX stock?
The Price/Earnings (PE) ratio for L3HARRIS TECHNOLOGIES INC (LHX) is 25.84 and the Price/Book (PB) ratio is 2.81.
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 51.11%.