LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
BIT:LDO - Euronext Milan - IT0003856405 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to LDO. LDO was compared to 45 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
In the past year LDO was profitable.
LDO had a positive operating cash flow in the past year.
In the past 5 years LDO has always been profitable.
LDO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LDO (4.97%) is better than 68.89% of its industry peers.
LDO's Return On Equity of 18.62% is fine compared to the rest of the industry. LDO outperforms 71.11% of its industry peers.
The Return On Invested Capital of LDO (9.48%) is better than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LDO is in line with the industry average of 8.61%.
The last Return On Invested Capital (9.48%) for LDO is above the 3 year average (6.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 18.62% | ||
| ROIC | 9.48% |
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
The Profit Margin of LDO (6.56%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LDO has remained more or less at the same level.
LDO has a Operating Margin of 6.78%. This is in the lower half of the industry: LDO underperforms 64.44% of its industry peers.
LDO's Operating Margin has been stable in the last couple of years.
The Gross Margin of LDO (30.79%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of LDO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.78% | ||
| PM (TTM) | 6.56% | ||
| GM | 30.79% |
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.
Compared to 1 year ago, LDO has about the same amount of shares outstanding.
Compared to 5 years ago, LDO has more shares outstanding
LDO has a better debt/assets ratio than last year.
2.2 Solvency
LDO has an Altman-Z score of 1.83. 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.
Looking at the Altman-Z score, with a value of 1.83, LDO is doing worse than 71.11% of the companies in the same industry.
LDO has a debt to FCF ratio of 7.28. This is a slightly negative value and a sign of low solvency as LDO would need 7.28 years to pay back of all of its debts.
The Debt to FCF ratio of LDO (7.28) is comparable to the rest of the industry.
LDO has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LDO (0.26) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 7.28 | ||
| Altman-Z | 1.83 |
ROIC/WACC1.17
WACC8.11%
2.3 Liquidity
LDO has a Current Ratio of 0.96. 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 Current ratio of 0.96. This is amonst the worse of the industry: LDO underperforms 80.00% of its industry peers.
A Quick Ratio of 0.61 indicates that LDO may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, LDO is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
LDO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.94%.
The Earnings Per Share has been decreasing by -4.48% on average over the past years.
LDO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.49%.
Measured over the past years, LDO shows a small growth in Revenue. The Revenue has been growing by 5.20% on average per year.
EPS 1Y (TTM)6.94%
EPS 3Y9.76%
EPS 5Y-4.48%
EPS Q2Q%18.75%
Revenue 1Y (TTM)16.49%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%13.51%
3.2 Future
LDO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.93% yearly.
Based on estimates for the next years, LDO will show a quite strong growth in Revenue. The Revenue will grow by 9.49% on average per year.
EPS Next Y36.56%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
EPS Next 5Y24.93%
Revenue Next Year8.19%
Revenue Next 2Y7.83%
Revenue Next 3Y7.66%
Revenue Next 5Y9.49%
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
Based on the Price/Earnings ratio of 35.92, the valuation of LDO can be described as expensive.
Based on the Price/Earnings ratio, LDO is valued a bit cheaper than the industry average as 62.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.15. LDO is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 22.80, LDO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LDO is valued a bit cheaper than the industry average as 62.22% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LDO to the average of the S&P500 Index (21.60), we can say LDO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.92 | ||
| Fwd PE | 22.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDO is valued cheaper than 91.11% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LDO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.76 | ||
| EV/EBITDA | 11.6 |
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.
A more expensive valuation may be justified as LDO's earnings are expected to grow with 23.76% in the coming years.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y27.15%
EPS Next 3Y23.76%
5. Dividend
5.1 Amount
LDO has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.20, LDO has a dividend in line with its industry peers.
With a Dividend Yield of 1.08, LDO pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of LDO is nicely growing with an annual growth rate of 16.88%!
Dividend Growth(5Y)16.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LDO pays out 10.57% of its income as dividend. This is a sustainable payout ratio.
LDO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.57%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
BIT:LDO (6/30/2025, 5:36:15 PM)
47.78
+1.15 (+2.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.87%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap27.62B
Analysts75.79
Price Target54.13 (13.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend0.31
Dividend Growth(5Y)16.88%
DP10.57%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)247.05%
Min EPS beat(2)1.01%
Max EPS beat(2)493.08%
EPS beat(4)3
Avg EPS beat(4)128.86%
Min EPS beat(4)-54.68%
Max EPS beat(4)493.08%
EPS beat(8)3
Avg EPS beat(8)56.58%
EPS beat(12)7
Avg EPS beat(12)99.95%
EPS beat(16)10
Avg EPS beat(16)78.61%
Revenue beat(2)2
Avg Revenue beat(2)3.73%
Min Revenue beat(2)0.09%
Max Revenue beat(2)7.38%
Revenue beat(4)4
Avg Revenue beat(4)5.96%
Min Revenue beat(4)0.09%
Max Revenue beat(4)8.89%
Revenue beat(8)5
Avg Revenue beat(8)2.11%
Revenue beat(12)9
Avg Revenue beat(12)30.27%
Revenue beat(16)12
Avg Revenue beat(16)32.4%
PT rev (1m)11.98%
PT rev (3m)25.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.92 | ||
| Fwd PE | 22.8 | ||
| P/S | 1.08 | ||
| P/FCF | 42.76 | ||
| P/OCF | 17.93 | ||
| P/B | 3.07 | ||
| P/tB | 105.44 | ||
| EV/EBITDA | 11.6 |
EPS(TTM)1.33
EY2.78%
EPS(NY)2.1
Fwd EY4.39%
FCF(TTM)1.12
FCFY2.34%
OCF(TTM)2.67
OCFY5.58%
SpS44.14
BVpS15.55
TBVpS0.45
PEG (NY)0.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 18.62% | ||
| ROCE | 11.53% | ||
| ROIC | 9.48% | ||
| ROICexc | 11.43% | ||
| ROICexgc | 38.21% | ||
| OM | 6.78% | ||
| PM (TTM) | 6.56% | ||
| GM | 30.79% | ||
| FCFM | 2.53% |
ROA(3y)2.86%
ROA(5y)2.31%
ROE(3y)11.1%
ROE(5y)9.4%
ROIC(3y)6.61%
ROIC(5y)6.35%
ROICexc(3y)7.82%
ROICexc(5y)7.66%
ROICexgc(3y)23.66%
ROICexgc(5y)24.69%
ROCE(3y)8.05%
ROCE(5y)7.73%
ROICexcg growth 3Y7.63%
ROICexcg growth 5Y-1.46%
ROICexc growth 3Y6%
ROICexc growth 5Y-1.29%
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%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 7.28 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 115.19% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 9.67 | ||
| Cash Conversion | 61.44% | ||
| Profit Quality | 38.59% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.83 |
F-Score6
WACC8.11%
ROIC/WACC1.17
Cap/Depr(3y)119.32%
Cap/Depr(5y)102.84%
Cap/Sales(3y)5.11%
Cap/Sales(5y)4.4%
Profit Quality(3y)54.54%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.94%
EPS 3Y9.76%
EPS 5Y-4.48%
EPS Q2Q%18.75%
EPS Next Y36.56%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
EPS Next 5Y24.93%
Revenue 1Y (TTM)16.49%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%13.51%
Revenue Next Year8.19%
Revenue Next 2Y7.83%
Revenue Next 3Y7.66%
Revenue Next 5Y9.49%
EBIT growth 1Y31.04%
EBIT growth 3Y12.91%
EBIT growth 5Y3.95%
EBIT Next Year73.88%
EBIT Next 3Y29.87%
EBIT Next 5Y26.11%
FCF growth 1Y59.9%
FCF growth 3Y71.98%
FCF growth 5Y70.37%
OCF growth 1Y29.93%
OCF growth 3Y27.59%
OCF growth 5Y19.25%