LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:LDO - IT0003856405 - Common Stock
57.74 EUR
+1.22 (+2.16%)
LDO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year LDO was profitable.
- LDO had positive earnings in each of the past 5 years.
- LDO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of LDO (4.86%) is better than 66.04% of its industry peers.
- Looking at the Return On Equity, with a value of 17.66%, LDO is in the better half of the industry, outperforming 62.26% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 11.75%, LDO belongs to the best of the industry, outperforming 81.13% of the companies in the same industry.
- LDO had an Average Return On Invested Capital over the past 3 years of 6.61%. This is below the industry average of 9.24%.
- The 3 year average ROIC (6.61%) for LDO is below the current ROIC(11.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 17.66% | ||
| ROIC | 11.75% |
ROA(3y)2.86%
ROA(5y)2.31%
ROE(3y)11.1%
ROE(5y)9.4%
ROIC(3y)6.61%
ROIC(5y)6.35%
1.3 Margins
- With a Profit Margin value of 5.80%, LDO perfoms like the industry average, outperforming 49.06% of the companies in the same industry.
- LDO's Profit Margin has been stable in the last couple of years.
- With a Operating Margin value of 7.54%, LDO is not doing good in the industry: 62.26% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of LDO has remained more or less at the same level.
- LDO has a Gross Margin of 30.12%. This is comparable to the rest of the industry: LDO outperforms 52.83% of its industry peers.
- LDO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.54% | ||
| PM (TTM) | 5.8% | ||
| GM | 30.12% |
OM growth 3Y4.63%
OM growth 5Y-1.19%
PM growth 3Y13.4%
PM growth 5Y0.3%
GM growth 3Y1.05%
GM growth 5Y-0.43%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LDO is creating some value.
- The number of shares outstanding for LDO remains at a similar level compared to 1 year ago.
- LDO has more 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
- LDO has an Altman-Z score of 2.14. This is not the best score and indicates that LDO is in the grey zone with still only limited risk for bankruptcy at the moment.
- LDO has a worse Altman-Z score (2.14) than 67.92% of its industry peers.
- LDO has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- LDO has a Debt to Equity ratio of 0.22. This is amongst the best in the industry. LDO outperforms 83.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.14 |
ROIC/WACC1.29
WACC9.09%
2.3 Liquidity
- LDO has a Current Ratio of 0.97. 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 0.97, LDO is doing worse than 83.02% of the companies in the same industry.
- LDO has a Quick Ratio of 0.97. 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 Quick ratio of 0.59. This is in the lower half of the industry: LDO underperforms 77.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.53% over the past year.
- Measured over the past years, LDO shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.48% on average per year.
- Looking at the last year, LDO shows a quite strong growth in Revenue. The Revenue has grown by 13.44% in the last year.
- LDO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.20% yearly.
EPS 1Y (TTM)24.53%
EPS 3Y9.76%
EPS 5Y-4.48%
EPS Q2Q%24.06%
Revenue 1Y (TTM)13.44%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%10.61%
3.2 Future
- LDO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.20% yearly.
- Based on estimates for the next years, LDO will show a quite strong growth in Revenue. The Revenue will grow by 8.44% on average per year.
EPS Next Y45.75%
EPS Next 2Y31.73%
EPS Next 3Y26.89%
EPS Next 5Y24.2%
Revenue Next Year10.39%
Revenue Next 2Y9.34%
Revenue Next 3Y8.66%
Revenue Next 5Y8.44%
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.
4. Valuation
4.1 Price/Earnings Ratio
- LDO is valuated quite expensively with a Price/Earnings ratio of 37.99.
- Based on the Price/Earnings ratio, LDO is valued a bit cheaper than the industry average as 67.92% of the companies are valued more expensively.
- LDO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 25.67 indicates a quite expensive valuation of LDO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LDO indicates a somewhat cheap valuation: LDO is cheaper than 73.58% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of LDO to the average of the S&P500 Index (25.98), we can say LDO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.99 | ||
| Fwd PE | 25.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LDO is valued cheaper than 88.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.36 |
4.3 Compensation for Growth
- LDO's 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 26.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y31.73%
EPS Next 3Y26.89%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.91%, LDO is not a good candidate for dividend investing.
- LDO's Dividend Yield is a higher than the industry average which is at 0.74.
- With a Dividend Yield of 0.91, LDO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
- On average, the dividend of LDO grows each year by 16.88%, which is quite nice.
Dividend Growth(5Y)16.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 11.14% of the earnings are spent on dividend by LDO. This is a low number and sustainable payout ratio.
- LDO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP11.14%
EPS Next 2Y31.73%
EPS Next 3Y26.89%
LEONARDO SPA / LDO.MI FAQ
What is the fundamental rating for LDO stock?
ChartMill assigns a fundamental rating of 5 / 10 to LDO.MI.
What is the valuation status for LDO stock?
ChartMill assigns a valuation rating of 4 / 10 to LEONARDO SPA (LDO.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for LEONARDO SPA?
LEONARDO SPA (LDO.MI) has a profitability rating of 6 / 10.
How financially healthy is LEONARDO SPA?
The financial health rating of LEONARDO SPA (LDO.MI) is 3 / 10.
How sustainable is the dividend of LEONARDO SPA (LDO.MI) stock?
The dividend rating of LEONARDO SPA (LDO.MI) is 5 / 10 and the dividend payout ratio is 11.14%.