LEONARDO SPA (LDO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:LDO - IT0003856405 - Common Stock
58.06 EUR
+1.2 (+2.11%)
Taking everything into account, LDO scores 5 out of 10 in our fundamental rating. LDO was compared to 53 industry peers in the Aerospace & Defense industry. LDO has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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 positive earnings in each of the past 5 years.
- Each year in the past 5 years LDO had a positive operating cash flow.
1.2 Ratios
- LDO has a better Return On Assets (4.86%) than 67.27% of its industry peers.
- LDO has a better Return On Equity (17.66%) than 65.45% of its industry peers.
- The Return On Invested Capital of LDO (11.75%) is better than 81.82% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LDO 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
- LDO has a Profit Margin of 5.80%. This is comparable to the rest of the industry: LDO outperforms 49.09% 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 worse Operating Margin (7.54%) than 60.00% of its industry peers.
- LDO's Operating Margin has been stable in the last couple of years.
- The Gross Margin of LDO (30.12%) is comparable to the rest of the industry.
- 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
- LDO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 2.17. 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 2.17, LDO is doing worse than 67.27% of the companies in the same industry.
- 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 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.17 |
ROIC/WACC1.31
WACC8.98%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that LDO may have some problems paying its short term obligations.
- LDO's Current ratio of 0.97 is on the low side compared to the rest of the industry. LDO is outperformed by 83.64% of its industry peers.
- A Quick Ratio of 0.59 indicates that LDO may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.59, LDO is doing worse than 78.18% of the companies in the same industry.
| 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.
- 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.
- The Revenue has grown by 13.44% in the past year. This is quite good.
- The Revenue has been growing slightly by 5.20% on average over the past years.
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.
- 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
- 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 38.20, which means the current valuation is very expensive for LDO.
- Compared to the rest of the industry, the Price/Earnings ratio of LDO indicates a somewhat cheap valuation: LDO is cheaper than 69.09% of the companies listed in the same industry.
- LDO is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 25.82 indicates a quite expensive valuation of LDO.
- Based on the Price/Forward Earnings ratio, LDO is valued a bit cheaper than 74.55% of the companies in the same industry.
- LDO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.2 | ||
| Fwd PE | 25.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LDO is valued cheaper than 89.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.67 |
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 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
- 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 1.81.
| 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%.