NOT FOR DISTRIBUTION
Header cover image

Market Cap

€4.0b

Last Updated

2021/04/19 17:38 UTC

Data Sources

Company Financials +

Executive Summary

Leonardo S.p.a. engages in the helicopters, defense electronics and security systems, aeronautics, space, and other businesses in Italy, the United Kingdom, rest of Europe, the United States, and internationally. More Details


Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has Leonardo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LDO is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LDO's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

2.3%

LDO

2.3%

IT Aerospace & Defense

1.5%

IT Market


1 Year Return

9.6%

LDO

41.6%

IT Aerospace & Defense

38.9%

IT Market

Return vs Industry: LDO underperformed the Italian Aerospace & Defense industry which returned 41.6% over the past year.

Return vs Market: LDO underperformed the Italian Market which returned 38.9% over the past year.


Shareholder returns

LDOIndustryMarket
7 Day2.3%2.3%1.5%
30 Day-4.8%5.9%2.5%
90 Day23.1%7.8%11.7%
1 Year12.0%9.6%43.1%41.6%42.5%38.9%
3 Year-24.0%-27.8%35.3%29.8%7.5%-3.2%
5 Year-30.4%-34.5%112.0%94.1%37.2%7.5%

Long-Term Price Volatility Vs. Market

How volatile is Leonardo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Leonardo undervalued compared to its fair value and its price relative to the market?

17.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LDO (€7.21) is trading above our estimate of fair value (€6.11)

Significantly Below Fair Value: LDO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LDO is good value based on its PE Ratio (17.3x) compared to the XE Aerospace & Defense industry average (25.4x).

PE vs Market: LDO is good value based on its PE Ratio (17.3x) compared to the Italian market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: LDO is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: LDO is good value based on its PB Ratio (0.8x) compared to the XE Aerospace & Defense industry average (2.4x).


Future Growth

How is Leonardo forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LDO's forecast earnings growth (23.9% per year) is above the savings rate (1.9%).

Earnings vs Market: LDO's earnings (23.9% per year) are forecast to grow faster than the Italian market (20.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LDO's revenue (3.5% per year) is forecast to grow faster than the Italian market (2.6% per year).

High Growth Revenue: LDO's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LDO's Return on Equity is forecast to be low in 3 years time (11.5%).


Past Performance

How has Leonardo performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LDO has a large one-off loss of €683.0M impacting its December 31 2020 financial results.

Growing Profit Margin: LDO's current net profit margins (1.8%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: LDO's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: LDO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LDO had negative earnings growth (-66.8%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-34.2%).


Return on Equity

High ROE: LDO's Return on Equity (4.6%) is considered low.


Financial Health

How is Leonardo's financial position?


Financial Position Analysis

Short Term Liabilities: LDO's short term assets (€15.2B) do not cover its short term liabilities (€15.9B).

Long Term Liabilities: LDO's short term assets (€15.2B) exceed its long term liabilities (€5.9B).


Debt to Equity History and Analysis

Debt Level: LDO's debt to equity ratio (98%) is considered high.

Reducing Debt: LDO's debt to equity ratio has reduced from 123.5% to 98% over the past 5 years.

Debt Coverage: LDO's debt is not well covered by operating cash flow (5.3%).

Interest Coverage: LDO's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Dividend

What is Leonardo current dividend yield, its reliability and sustainability?

2.79%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LDO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LDO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LDO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LDO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LDO is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LDO's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Alessandro Profumo (63 yo)

3.92yrs

Tenure

Mr. Alessandro Profumo has been the Chief Executive Officer and Director of Leonardo S.p.a. since May 5, 2017. Mr. Profumo served as President at Equita SIM Spa, Investment Arm. Mr. Profumo served as the C...


Leadership Team

Experienced Management: LDO's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: LDO's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

Leonardo S.p.a.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leonardo S.p.a.
  • Ticker: LDO
  • Exchange: BIT
  • Founded: 1948
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: €4.049b
  • Shares outstanding: 575.17m
  • Website: https://www.leonardocompany.com/en/home

Number of Employees


Location

  • Leonardo S.p.a.
  • Piazza Monte Grappa n. 4
  • Rome
  • Rome
  • 195
  • Italy

Listings


Biography

Leonardo S.p.a. engages in the helicopters, defense electronics and security systems, aeronautics, space, and other businesses in Italy, the United Kingdom, rest of Europe, the United States, and internati...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/19 17:38
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.