LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
BIT:LDO - Euronext Milan - IT0003856405 - Common Stock - Currency: EUR
Overall LDO gets a fundamental rating of 4 out of 10. We evaluated LDO against 41 industry peers in the Aerospace & Defense industry. While LDO is still in line with the averages on profitability rating, there are concerns on its financial health. LDO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LDO had positive earnings in the past year.
LDO had a positive operating cash flow in the past year.
Each year in the past 5 years LDO has been profitable.
LDO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LDO's Return On Assets of 4.77% is fine compared to the rest of the industry. LDO outperforms 76.32% of its industry peers.
LDO has a Return On Equity of 18.12%. This is in the better half of the industry: LDO outperforms 76.32% of its industry peers.
With a decent Return On Invested Capital value of 8.90%, LDO is doing good in the industry, outperforming 63.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LDO is below the industry average of 8.91%.
The last Return On Invested Capital (8.90%) for LDO is above the 3 year average (6.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 18.12% | ||
| ROIC | 8.9% |
ROA(3y)2.48%
ROA(5y)2.28%
ROE(3y)10.15%
ROE(5y)10.09%
ROIC(3y)6.73%
ROIC(5y)7.03%
1.3 Margins
LDO's Profit Margin of 6.43% is fine compared to the rest of the industry. LDO outperforms 63.16% of its industry peers.
In the last couple of years the Profit Margin of LDO has remained more or less at the same level.
The Operating Margin of LDO (6.08%) is worse than 60.53% of its industry peers.
LDO's Operating Margin has been stable in the last couple of years.
The Gross Margin of LDO (30.04%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of LDO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 6.43% | ||
| GM | 30.04% |
OM growth 3Y4.28%
OM growth 5Y-0.76%
PM growth 3Y33.78%
PM growth 5Y0.69%
GM growth 3Y-1.16%
GM growth 5Y-1.94%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LDO is still creating some value.
The number of shares outstanding for LDO remains at a similar level compared to 1 year ago.
LDO has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for LDO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that LDO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.77, LDO is doing worse than 60.53% of the companies in the same industry.
The Debt to FCF ratio of LDO is 9.31, which is on the high side as it means it would take LDO, 9.31 years of fcf income to pay off all of its debts.
LDO has a worse Debt to FCF ratio (9.31) than 63.16% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that LDO is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.29, LDO belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 9.31 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.08
WACC8.23%
2.3 Liquidity
LDO has a Current Ratio of 0.95. This is a bad value and indicates that LDO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.95, LDO is doing worse than 73.68% of the companies in the same industry.
LDO has a Quick Ratio of 0.95. This is a bad value and indicates that LDO is not financially healthy enough and could expect problems in meeting its short term obligations.
LDO has a worse Quick ratio (0.58) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
LDO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.69%, which is quite impressive.
The Earnings Per Share has been decreasing by -2.65% on average over the past years.
LDO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.58%.
LDO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.55% yearly.
EPS 1Y (TTM)29.69%
EPS 3Y39.62%
EPS 5Y-2.65%
EPS Q2Q%87.32%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y4.47%
Revenue growth 5Y4.55%
Sales Q2Q%21.21%
3.2 Future
Based on estimates for the next years, LDO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.85% on average per year.
The Revenue is expected to grow by 6.64% on average over the next years.
EPS Next Y41.77%
EPS Next 2Y21.15%
EPS Next 3Y20.02%
EPS Next 5Y15.85%
Revenue Next Year13.19%
Revenue Next 2Y9.49%
Revenue Next 3Y8.23%
Revenue Next 5Y6.64%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.41, the valuation of LDO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LDO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.35. LDO is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 25.75, LDO can be considered very expensive at the moment.
LDO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, LDO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.41 | ||
| Fwd PE | 25.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDO is valued a bit cheaper than 76.32% of the companies in the same industry.
LDO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.14 | ||
| EV/EBITDA | 13.68 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LDO has a very decent profitability rating, which may justify a higher PE ratio.
LDO's earnings are expected to grow with 20.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y21.15%
EPS Next 3Y20.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, LDO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.20, LDO is paying slightly less dividend.
With a Dividend Yield of 0.61, LDO pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of LDO has a limited annual growth rate of 0.46%.
Dividend Growth(5Y)0.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LDO pays out 11.69% of its income as dividend. This is a sustainable payout ratio.
The dividend of LDO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP11.69%
EPS Next 2Y21.15%
EPS Next 3Y20.02%
BIT:LDO (3/7/2025, 7:00:00 PM)
43.2
-2.97 (-6.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.43%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap24.98B
Analysts82.11
Price Target35.13 (-18.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.14
Dividend Growth(5Y)0.46%
DP11.69%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.67%
Min EPS beat(2)-54.68%
Max EPS beat(2)76.02%
EPS beat(4)1
Avg EPS beat(4)-2.05%
Min EPS beat(4)-54.68%
Max EPS beat(4)76.02%
EPS beat(8)3
Avg EPS beat(8)66.28%
EPS beat(12)6
Avg EPS beat(12)55.79%
EPS beat(16)9
Avg EPS beat(16)44.59%
Revenue beat(2)2
Avg Revenue beat(2)8.19%
Min Revenue beat(2)7.49%
Max Revenue beat(2)8.89%
Revenue beat(4)2
Avg Revenue beat(4)2.72%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)8.89%
Revenue beat(8)5
Avg Revenue beat(8)34.3%
Revenue beat(12)8
Avg Revenue beat(12)34.96%
Revenue beat(16)12
Avg Revenue beat(16)36.51%
PT rev (1m)13.92%
PT rev (3m)29.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.31%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)-1.3%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)1.54%
Revenue NY rev (3m)2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.41 | ||
| Fwd PE | 25.75 | ||
| P/S | 1.07 | ||
| P/FCF | 53.14 | ||
| P/OCF | 19.21 | ||
| P/B | 3.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.68 |
EPS(TTM)1.22
EY2.82%
EPS(NY)1.68
Fwd EY3.88%
FCF(TTM)0.81
FCFY1.88%
OCF(TTM)2.25
OCFY5.2%
SpS40.51
BVpS14.37
TBVpS-0.41
PEG (NY)0.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 18.12% | ||
| ROCE | 9.93% | ||
| ROIC | 8.9% | ||
| ROICexc | 9.61% | ||
| ROICexgc | 27.01% | ||
| OM | 6.08% | ||
| PM (TTM) | 6.43% | ||
| GM | 30.04% | ||
| FCFM | 2.01% |
ROA(3y)2.48%
ROA(5y)2.28%
ROE(3y)10.15%
ROE(5y)10.09%
ROIC(3y)6.73%
ROIC(5y)7.03%
ROICexc(3y)8.02%
ROICexc(5y)8.48%
ROICexgc(3y)23.7%
ROICexgc(5y)27.4%
ROCE(3y)7.51%
ROCE(5y)7.85%
ROICexcg growth 3Y-7.28%
ROICexcg growth 5Y-9.45%
ROICexc growth 3Y0.78%
ROICexc growth 5Y-2.05%
OM growth 3Y4.28%
OM growth 5Y-0.76%
PM growth 3Y33.78%
PM growth 5Y0.69%
GM growth 3Y-1.16%
GM growth 5Y-1.94%
F-Score4
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 9.31 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 128.68% | ||
| Cap/Sales | 3.54% | ||
| Interest Coverage | 8.23 | ||
| Cash Conversion | 62.86% | ||
| Profit Quality | 31.23% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.77 |
F-Score4
WACC8.23%
ROIC/WACC1.08
Cap/Depr(3y)119.97%
Cap/Depr(5y)99%
Cap/Sales(3y)4.88%
Cap/Sales(5y)4.25%
Profit Quality(3y)41.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.69%
EPS 3Y39.62%
EPS 5Y-2.65%
EPS Q2Q%87.32%
EPS Next Y41.77%
EPS Next 2Y21.15%
EPS Next 3Y20.02%
EPS Next 5Y15.85%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y4.47%
Revenue growth 5Y4.55%
Sales Q2Q%21.21%
Revenue Next Year13.19%
Revenue Next 2Y9.49%
Revenue Next 3Y8.23%
Revenue Next 5Y6.64%
EBIT growth 1Y-14.23%
EBIT growth 3Y8.95%
EBIT growth 5Y3.76%
EBIT Next Year65.12%
EBIT Next 3Y26.55%
EBIT Next 5Y19.48%
FCF growth 1Y-0.42%
FCF growth 3YN/A
FCF growth 5Y29.72%
OCF growth 1Y19.82%
OCF growth 3Y62.77%
OCF growth 5Y11.54%