L3HARRIS TECHNOLOGIES INC (LHX)
US5024311095 - Common Stock
Taking everything into account, LHX scores 5 out of 10 in our fundamental rating. LHX was compared to 65 industry peers in the Aerospace & Defense industry. While LHX is still in line with the averages on profitability rating, there are concerns on its financial health. LHX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LHX was profitable.
LHX had a positive operating cash flow in the past year.
Each year in the past 5 years LHX has been profitable.
LHX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LHX (2.88%) is comparable to the rest of the industry.
LHX has a Return On Equity of 6.35%. This is comparable to the rest of the industry: LHX outperforms 55.38% of its industry peers.
With a Return On Invested Capital value of 6.00%, LHX perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LHX is in line with the industry average of 7.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 6.35% | ||
| ROIC | 6% |
ROA(3y)3.81%
ROA(5y)4.76%
ROE(3y)7.29%
ROE(5y)11.09%
ROIC(3y)6.33%
ROIC(5y)7.4%
1.3 Margins
LHX's Profit Margin of 5.71% is in line compared to the rest of the industry. LHX outperforms 55.38% of its industry peers.
LHX's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 10.98%, LHX is doing good in the industry, outperforming 78.46% of the companies in the same industry.
LHX's Operating Margin has declined in the last couple of years.
LHX has a better Gross Margin (26.17%) than 61.54% of its industry peers.
LHX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.98% | ||
| PM (TTM) | 5.71% | ||
| GM | 26.17% |
OM growth 3Y0.13%
OM growth 5Y-5.87%
PM growth 3Y0.9%
PM growth 5Y-10.98%
GM growth 3Y-3.36%
GM growth 5Y-5.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LHX is destroying value.
Compared to 1 year ago, LHX has less shares outstanding
The number of shares outstanding for LHX has been increased compared to 5 years ago.
The debt/assets ratio for LHX is higher compared to a year ago.
2.2 Solvency
LHX has an Altman-Z score of 1.88. This is not the best score and indicates that LHX is in the grey zone with still only limited risk for bankruptcy at the moment.
LHX has a Altman-Z score of 1.88. This is in the lower half of the industry: LHX underperforms 66.15% of its industry peers.
The Debt to FCF ratio of LHX is 7.20, which is on the high side as it means it would take LHX, 7.20 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LHX (7.20) is better than 64.62% of its industry peers.
LHX has a Debt/Equity ratio of 0.65. This is a neutral value indicating LHX is somewhat dependend on debt financing.
LHX has a Debt to Equity ratio of 0.65. This is in the lower half of the industry: LHX underperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.63
WACC9.55%
2.3 Liquidity
LHX has a Current Ratio of 1.04. This is a normal value and indicates that LHX is financially healthy and should not expect problems in meeting its short term obligations.
LHX has a worse Current ratio (1.04) than 83.08% of its industry peers.
A Quick Ratio of 0.87 indicates that LHX may have some problems paying its short term obligations.
With a Quick ratio value of 0.87, LHX is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
LHX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.70%.
LHX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.25% yearly.
Looking at the last year, LHX shows a quite strong growth in Revenue. The Revenue has grown by 13.32% in the last year.
The Revenue has been growing by 25.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)5.7%
EPS 3Y2.14%
EPS 5Y2.25%
EPS Q2Q%4.7%
Revenue 1Y (TTM)13.32%
Revenue growth 3Y2.2%
Revenue growth 5Y25.78%
Sales Q2Q%7.67%
3.2 Future
The Earnings Per Share is expected to grow by 8.53% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.54% on average over the next years.
EPS Next Y6.95%
EPS Next 2Y8.39%
EPS Next 3Y8.95%
EPS Next 5Y8.53%
Revenue Next Year9.64%
Revenue Next 2Y6.54%
Revenue Next 3Y5.96%
Revenue Next 5Y6.54%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.44, the valuation of LHX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of LHX indicates a rather cheap valuation: LHX is cheaper than 90.77% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LHX to the average of the S&P500 Index (27.73), we can say LHX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.69, the valuation of LHX can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LHX indicates a rather cheap valuation: LHX is cheaper than 89.23% of the companies listed in the same industry.
LHX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LHX is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
LHX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LHX is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.6 | ||
| EV/EBITDA | 14.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.36
PEG (5Y)7.31
EPS Next 2Y8.39%
EPS Next 3Y8.95%
5. Dividend
5.1 Amount
LHX has a Yearly Dividend Yield of 2.20%.
Compared to an average industry Dividend Yield of 1.42, LHX pays a better dividend. On top of this LHX pays more dividend than 93.85% of the companies listed in the same industry.
LHX's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
On average, the dividend of LHX grows each year by 16.34%, which is quite nice.
LHX has been paying a dividend for at least 10 years, so it has a reliable track record.
LHX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.34%
Div Incr Years21
Div Non Decr Years24
5.3 Sustainability
LHX pays out 72.99% of its income as dividend. This is not a sustainable payout ratio.
LHX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP72.99%
EPS Next 2Y8.39%
EPS Next 3Y8.95%
L3HARRIS TECHNOLOGIES INC
NYSE:LHX (12/20/2024, 8:22:18 PM)
After market: 213.55 0 (0%)213.55
+2.91 (+1.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners85.65%
Inst Owner Change-0.05%
Ins Owners0.31%
Ins Owner Change-2.09%
Market Cap40.50B
Analysts77.24
Price Target283.08 (32.56%)
Short Float %0.9%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Dividend Growth(5Y)16.34%
DP72.99%
Div Incr Years21
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.24%
Min EPS beat(2)0.97%
Max EPS beat(2)1.5%
EPS beat(4)4
Avg EPS beat(4)1.75%
Min EPS beat(4)0.09%
Max EPS beat(4)4.46%
EPS beat(8)5
Avg EPS beat(8)1.23%
EPS beat(12)8
Avg EPS beat(12)0.6%
EPS beat(16)11
Avg EPS beat(16)1.03%
Revenue beat(2)0
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)-0.75%
Revenue beat(4)1
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)1.05%
Revenue beat(8)5
Avg Revenue beat(8)2.03%
Revenue beat(12)5
Avg Revenue beat(12)0.24%
Revenue beat(16)5
Avg Revenue beat(16)-0.67%
PT rev (1m)6.31%
PT rev (3m)9.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.6%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.69 | ||
| P/S | 1.92 | ||
| P/FCF | 22.6 | ||
| P/OCF | 18.25 | ||
| P/B | 2.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.22 |
EPS(TTM)12.99
EY6.08%
EPS(NY)14.53
Fwd EY6.81%
FCF(TTM)9.45
FCFY4.42%
OCF(TTM)11.7
OCFY5.48%
SpS111.47
BVpS100.16
TBVpS-49.08
PEG (NY)2.36
PEG (5Y)7.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 6.35% | ||
| ROCE | 6.85% | ||
| ROIC | 6% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 33.72% | ||
| OM | 10.98% | ||
| PM (TTM) | 5.71% | ||
| GM | 26.17% | ||
| FCFM | 8.48% |
ROA(3y)3.81%
ROA(5y)4.76%
ROE(3y)7.29%
ROE(5y)11.09%
ROIC(3y)6.33%
ROIC(5y)7.4%
ROICexc(3y)6.51%
ROICexc(5y)7.73%
ROICexgc(3y)43.3%
ROICexgc(5y)50.1%
ROCE(3y)7.08%
ROCE(5y)8.25%
ROICexcg growth 3Y-6.98%
ROICexcg growth 5Y-11.73%
ROICexc growth 3Y-1%
ROICexc growth 5Y-12.2%
OM growth 3Y0.13%
OM growth 5Y-5.87%
PM growth 3Y0.9%
PM growth 5Y-10.98%
GM growth 3Y-3.36%
GM growth 5Y-5.03%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 7.2 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 32.52% | ||
| Cap/Sales | 2.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.05% | ||
| Profit Quality | 148.47% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.88 |
F-Score6
WACC9.55%
ROIC/WACC0.63
Cap/Depr(3y)33.58%
Cap/Depr(5y)39.76%
Cap/Sales(3y)1.9%
Cap/Sales(5y)2.02%
Profit Quality(3y)146.91%
Profit Quality(5y)153.06%
High Growth Momentum
Growth
EPS 1Y (TTM)5.7%
EPS 3Y2.14%
EPS 5Y2.25%
EPS Q2Q%4.7%
EPS Next Y6.95%
EPS Next 2Y8.39%
EPS Next 3Y8.95%
EPS Next 5Y8.53%
Revenue 1Y (TTM)13.32%
Revenue growth 3Y2.2%
Revenue growth 5Y25.78%
Sales Q2Q%7.67%
Revenue Next Year9.64%
Revenue Next 2Y6.54%
Revenue Next 3Y5.96%
Revenue Next 5Y6.54%
EBIT growth 1Y13.32%
EBIT growth 3Y2.33%
EBIT growth 5Y18.39%
EBIT Next Year43.83%
EBIT Next 3Y17.38%
EBIT Next 5Y13.96%
FCF growth 1Y-4.78%
FCF growth 3Y-12.06%
FCF growth 5Y21.78%
OCF growth 1Y0.96%
OCF growth 3Y-9.09%
OCF growth 5Y22.79%