LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:LDO - IT0003856405 - Common Stock
57.74 EUR
0 (0%)
We assign a fundamental rating of 5 out of 10 to LDO. LDO was compared to 53 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of LDO while its profitability can be described as average. LDO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- LDO had positive earnings 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
- LDO's Return On Assets of 4.86% is fine compared to the rest of the industry. LDO outperforms 66.04% of its industry peers.
- LDO has a Return On Equity of 17.66%. This is in the better half of the industry: LDO outperforms 62.26% of its industry peers.
- The Return On Invested Capital of LDO (11.75%) is better than 81.13% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LDO is below the industry average of 9.24%.
- The last Return On Invested Capital (11.75%) for LDO is above the 3 year average (6.61%), which is a sign of increasing profitability.
| 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
- The Profit Margin of LDO (5.80%) 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.
- The Operating Margin of LDO (7.54%) is worse than 62.26% of its industry peers.
- In the last couple of years the Operating Margin of LDO has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 30.12%, LDO is in line with its industry, outperforming 52.83% of the companies in the same 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 | 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
- LDO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- LDO has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, LDO has more shares outstanding
- The debt/assets ratio for LDO has been reduced compared to a year ago.
2.2 Solvency
- LDO has an Altman-Z score of 2.16. 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.
- With a Altman-Z score value of 2.16, LDO is not doing good in the industry: 66.04% of the companies in the same industry are doing better.
- LDO has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.22, LDO belongs to the best of the industry, outperforming 83.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.16 |
ROIC/WACC1.29
WACC9.09%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that LDO may have some problems paying its short term obligations.
- LDO has a worse Current ratio (0.97) than 83.02% of its industry peers.
- A Quick Ratio of 0.59 indicates that LDO may have some problems paying its short term obligations.
- LDO has a worse Quick ratio (0.59) than 77.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- LDO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.53%, which is quite impressive.
- The Earnings Per Share has been decreasing by -4.48% on average over the past years.
- Looking at the last year, LDO shows a quite strong growth in Revenue. The Revenue has grown by 13.44% 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)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
- Based on estimates for the next years, LDO will show a very strong growth in Earnings Per Share. The EPS will grow by 24.20% on average per year.
- LDO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.44% yearly.
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.
- 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
- The Price/Earnings ratio is 37.99, which means the current valuation is very expensive for LDO.
- LDO's Price/Earnings ratio is a bit cheaper when compared to the industry. LDO is cheaper than 67.92% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. LDO is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 25.67, the valuation of LDO can be described as expensive.
- LDO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LDO is cheaper than 67.92% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of LDO to the average of the S&P500 Index (25.95), 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
- 90.57% of the companies in the same industry are more expensive than LDO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.6 |
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.
- The decent profitability rating of LDO may justify a higher PE ratio.
- A more expensive valuation may be justified as LDO's earnings are expected to grow with 26.89% in the coming years.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y31.73%
EPS Next 3Y26.89%
5. Dividend
5.1 Amount
- LDO has a yearly dividend return of 0.91%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.74, LDO pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, LDO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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 11.14% 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.
DP11.14%
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%.