L3Harris Technologies, Inc., an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide.
L3Harris Technologies, Inc., an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide. The company’s Integrated Mission Systems segment provides multi-mission intelligence, surveillance, and reconnaissance (ISR) systems; and communication systems, as well as fleet management support, sensor development, modification, and periodic depot maintenance services for ISR and airborne missions. It also manufactures and integrates mission systems for maritime platforms, such as signals intelligence and multi-intelligence platforms; unmanned surface and undersea autonomous solutions; and power and ship control systems and other electronic and electrical products and systems.
L3Harris Technologies Fundamentals Summary
How do L3Harris Technologies's earnings and revenue compare to its market cap?
Is L3Harris Technologies undervalued compared to its fair value and its price relative to the market?
Valuation Score
4/6
Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
27.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: L1HX34 (R$301.5) is trading below our estimate of fair value (R$413.11)
Significantly Below Fair Value: L1HX34 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: L1HX34 is good value based on its PE Ratio (24.2x) compared to the Global Aerospace & Defense industry average (29.1x).
PE vs Market: L1HX34 is poor value based on its PE Ratio (24.2x) compared to the BR market (8.6x).
Price to Earnings Growth Ratio
PEG Ratio: L1HX34 is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: L1HX34 is good value based on its PB Ratio (2.3x) compared to the XX Aerospace & Defense industry average (2.6x).
Future Growth
How is L3Harris Technologies forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Future Growth Score
1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
8.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: L1HX34's forecast earnings growth (8.9% per year) is below the savings rate (9.1%).
Earnings vs Market: L1HX34's earnings (8.9% per year) are forecast to grow faster than the BR market (6% per year).
High Growth Earnings: L1HX34's earnings are forecast to grow, but not significantly.
Revenue vs Market: L1HX34's revenue (5% per year) is forecast to grow slower than the BR market (6.2% per year).
High Growth Revenue: L1HX34's revenue (5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: L1HX34's Return on Equity is forecast to be low in 3 years time (15.4%).
Past Performance
How has L3Harris Technologies performed over the past 5 years?
Past Performance Score
5/6
Past Performance Score 5/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
22.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: L1HX34 has high quality earnings.
Growing Profit Margin: L1HX34's current net profit margins (10.7%) are higher than last year (7.6%).
Past Earnings Growth Analysis
Earnings Trend: L1HX34's earnings have grown significantly by 22.9% per year over the past 5 years.
Accelerating Growth: L1HX34's earnings growth over the past year (35.3%) exceeds its 5-year average (22.9% per year).
Earnings vs Industry: L1HX34 earnings growth over the past year (35.3%) exceeded the Aerospace & Defense industry 16.5%.
Return on Equity
High ROE: L1HX34's Return on Equity (9.6%) is considered low.
Financial Health
How is L3Harris Technologies's financial position?
Financial Health Score
5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: L1HX34's short term assets ($6.2B) exceed its short term liabilities ($4.7B).
Long Term Liabilities: L1HX34's short term assets ($6.2B) do not cover its long term liabilities ($10.3B).
Debt to Equity History and Analysis
Debt Level: L1HX34's net debt to equity ratio (34.4%) is considered satisfactory.
Reducing Debt: L1HX34's debt to equity ratio has reduced from 144.4% to 36.5% over the past 5 years.
Debt Coverage: L1HX34's debt is well covered by operating cash flow (29.2%).
Interest Coverage: L1HX34's interest payments on its debt are well covered by EBIT (9.8x coverage).
Balance Sheet
Dividend
What is L3Harris Technologies's current dividend yield, its reliability and sustainability?
Dividend Score
5/6
Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.92%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: L1HX34's dividend (1.92%) is higher than the bottom 25% of dividend payers in the BR market (1.37%).
High Dividend: L1HX34's dividend (1.92%) is low compared to the top 25% of dividend payers in the BR market (6.65%).
Stability and Growth of Payments
Stable Dividend: L1HX34's dividends per share have been stable in the past 10 years.
Growing Dividend: L1HX34's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (44.6%), L1HX34's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (49.8%), L1HX34's dividend payments are well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Chris Kubasik (60 yo)
0.92
Tenure
US$15,697,749
Compensation
Mr. Christopher E. Kubasik, also known as Chris, CPA, has been the Chief Executive Officer at L3Harris Technologies, Inc. since June 29, 2021. He is the Vice Chairman at L3Harris Technologies, Inc., since...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD15.70M) is above average for companies of similar size in the BR market ($USD6.47M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: L1HX34's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: L1HX34's board of directors are considered experienced (3.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
L3Harris Technologies, Inc.'s employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/05/20 00:00
End of Day Share Price
2022/05/13 00:00
Earnings
2022/04/01
Annual Earnings
2021/12/31
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.