LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
BIT:LDO - Euronext Milan - IT0003856405 - Common Stock - Currency: EUR
Overall LDO gets a fundamental rating of 5 out of 10. We evaluated LDO against 40 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LDO had positive earnings in the past year.
In the past year LDO had a positive cash flow from operations.
In the past 5 years LDO has always been profitable.
In the past 5 years LDO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.97%, LDO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.62%, LDO is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.48%, LDO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LDO is below the industry average of 8.80%.
The 3 year average ROIC (6.61%) for LDO is below the current ROIC(9.48%), indicating increased profibility in the last year.
| 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 better than 65.00% of its industry peers.
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 (6.78%) which is comparable to the rest of the industry.
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 (30.79%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LDO is still creating some value.
LDO has about the same amout of shares outstanding than it did 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
Based on the Altman-Z score of 1.79, 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 1.79, LDO is in line with its industry, outperforming 42.50% 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.
LDO has a Debt to FCF ratio (7.28) which is in line with its industry peers.
A Debt/Equity ratio of 0.26 indicates that LDO is not too dependend on debt financing.
The Debt to Equity ratio of LDO (0.26) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 7.28 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.17
WACC8.09%
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.
The Current ratio of LDO (0.96) is worse than 77.50% of its industry peers.
LDO has a Quick 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 worse Quick ratio (0.61) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.39% 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 17.59% in the last year.
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)13.39%
EPS 3Y9.76%
EPS 5Y-4.48%
EPS Q2Q%11.06%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%13.24%
3.2 Future
The Earnings Per Share is expected to grow by 9.92% on average over the next years. This is quite good.
Based on estimates for the next years, LDO will show a small growth in Revenue. The Revenue will grow by 5.92% on average per year.
EPS Next Y36.56%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
EPS Next 5Y9.92%
Revenue Next Year5.91%
Revenue Next 2Y5.83%
Revenue Next 3Y5.31%
Revenue Next 5Y5.92%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.32, 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.
Compared to an average S&P500 Price/Earnings ratio of 28.79, LDO is valued at the same level.
With a Price/Forward Earnings ratio of 25.21, LDO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LDO is on the same level as its industry peers.
LDO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.32 | ||
| Fwd PE | 25.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDO is valued cheaper than 90.00% 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 | 39.93 | ||
| EV/EBITDA | 11.08 |
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)0.94
PEG (5Y)N/A
EPS Next 2Y27.15%
EPS Next 3Y23.76%
5. Dividend
5.1 Amount
LDO has a Yearly Dividend Yield of 1.15%.
Compared to an average industry Dividend Yield of 1.37, LDO has a dividend in line with its industry peers.
With a Dividend Yield of 1.15, LDO pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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 slower than its dividend. This means the dividend growth is not sustainable.
DP10.57%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
BIT:LDO (4/25/2025, 7:00:00 PM)
44.62
+0.26 (+0.59%)
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 Cap25.80B
Analysts77
Price Target46.9 (5.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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)33.51%
PT rev (3m)68.77%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.49%
EPS NY rev (3m)4.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.32 | ||
| Fwd PE | 25.21 | ||
| P/S | 1.01 | ||
| P/FCF | 39.93 | ||
| P/OCF | 16.74 | ||
| P/B | 2.87 | ||
| P/tB | 98.46 | ||
| EV/EBITDA | 11.08 |
EPS(TTM)1.3
EY2.91%
EPS(NY)1.77
Fwd EY3.97%
FCF(TTM)1.12
FCFY2.5%
OCF(TTM)2.67
OCFY5.97%
SpS44.14
BVpS15.55
TBVpS0.45
PEG (NY)0.94
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 | 1.79 |
F-Score6
WACC8.09%
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)13.39%
EPS 3Y9.76%
EPS 5Y-4.48%
EPS Q2Q%11.06%
EPS Next Y36.56%
EPS Next 2Y27.15%
EPS Next 3Y23.76%
EPS Next 5Y9.92%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y7.91%
Revenue growth 5Y5.2%
Sales Q2Q%13.24%
Revenue Next Year5.91%
Revenue Next 2Y5.83%
Revenue Next 3Y5.31%
Revenue Next 5Y5.92%
EBIT growth 1Y31.04%
EBIT growth 3Y12.91%
EBIT growth 5Y3.95%
EBIT Next Year70.9%
EBIT Next 3Y28.22%
EBIT Next 5Y23.87%
FCF growth 1Y59.9%
FCF growth 3Y71.98%
FCF growth 5Y70.37%
OCF growth 1Y29.93%
OCF growth 3Y27.59%
OCF growth 5Y19.25%