BIT:LDO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with proven track record.


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


Market Performance


7 Day Return

6.8%

LDO

-0.7%

IT Aerospace & Defense

0.6%

IT Market


1 Year Return

5.3%

LDO

11.4%

IT Aerospace & Defense

11.6%

IT Market

Return vs Industry: LDO underperformed the Italian Aerospace & Defense industry which returned 11.4% over the past year.

Return vs Market: LDO underperformed the Italian Market which returned 11.6% over the past year.


Shareholder returns

LDOIndustryMarket
7 Day6.8%-0.7%0.6%
30 Day-6.5%-3.8%0.8%
90 Day-6.3%-2.2%1.7%
1 Year6.8%5.3%13.8%11.4%16.4%11.6%
3 Year-2.5%-6.2%73.5%62.5%25.2%8.1%
5 Year50.9%45.2%136.6%107.8%21.3%-26.0%

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?

8.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LDO (€10.59) is trading below our estimate of fair value (€11.52)

Significantly Undervalued: LDO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LDO is good value based on its PE Ratio (10.8x) compared to the Aerospace & Defense industry average (21.7x).

PE vs Market: LDO is good value based on its PE Ratio (10.8x) compared to the Italian market (17.8x).


Price to Earnings Growth Ratio

Low PEG Ratio: LDO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: LDO is good value based on its PB Ratio (1.3x) compared to the XE Aerospace & Defense industry average (1.9x).


Next Steps

Future Growth

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

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LDO's forecast earnings growth (13.3% per year) is above the savings rate (2.9%).

Earnings vs Market: LDO's earnings (13.3% per year) are forecast to grow faster than the Italian market (8.5% per year).

High Growth Earnings: LDO's earnings are forecast to grow, but not significantly.

Revenue vs Market: LDO's revenue (5.1% per year) is forecast to grow faster than the Italian market (3% per year).

High Growth Revenue: LDO's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LDO's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has Leonardo performed over the past 5 years?

43.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LDO has become profitable over the past 5 years, growing earnings by 43.9% per year.

Accelerating Growth: LDO's earnings growth over the past year (232.9%) exceeds its 5-year average (43.9% per year).

Earnings vs Industry: LDO earnings growth over the past year (232.9%) exceeded the Aerospace & Defense industry 16.4%.


Return on Equity

High ROE: LDO's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: LDO's Return on Assets is below or equal to the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: LDO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Leonardo's financial position?


Financial Position Analysis

Short Term Liabilities: LDO's short term assets (€14.2B) do not cover its short term liabilities (€15.1B)

Long Term Liabilities: LDO's short term assets (14.2B) exceeds its long term liabilities (6.5B)


Debt to Equity History and Analysis

Debt Level: LDO's debt to equity ratio (115.2%) is considered high

Reducing Debt: LDO's debt to equity ratio has reduced from 155.9% to 115.2% over the past 5 years.

Debt Coverage: LDO's debt is not well covered by operating cash flow (9.4%).

Interest Coverage: LDO's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

Inventory Level: LDO has a high level of physical assets or inventory.

Debt Coverage by Assets: LDO's debt is covered by short term assets (assets are 2.604040x debt).


Next Steps

Dividend

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

1.32%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.1%markettop25%4.4%industryaverage1.7%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LDO's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (2.09%).

High Dividend: LDO's dividend (1.32%) is low compared to the top 25% of dividend payers in the Italian market (4.41%).

Stable Dividend: LDO's dividend payments have been volatile in the past 10 years.

Growing Dividend: LDO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.2%), LDO's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LDO's dividends in 3 years are forecast to be well covered by earnings (16.3% payout ratio).


Next Steps

Management

What is the CEO of Leonardo's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average board tenure


CEO

Alessandro Profumo (62yo)

2.4yrs

Tenure

0

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 ...


Board Age and Tenure

5.4yrs

Average Tenure

63yo

Average Age

Experienced Board: LDO's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Alessandro Profumo (62yo)

    CEO & Director

    • Tenure: 2.4yrs
  • Giovanni Soccodato (58yo)

    Chief Strategy & Innovation Officer

    • Tenure: 0yrs
  • Gian Cutillo

    MD of the Helicopters Division

    • Tenure: 0yrs
  • Giuseppe Maresca

    Senior Vice President of Marketing & Commercial Affairs

    • Tenure: 0yrs
  • Francesco Mantovani

    Senior Vice President of HR Development and Education

    • Tenure: 0yrs
  • Raffaella Luglini

    Chief Stakeholder Officer

    • Tenure: 0yrs
  • Luigi Calabria

    Head of Group Finance

    • Tenure: 0yrs
  • Andrea Parrella

    Group General Counsel of Legal

    • Tenure: 0yrs
  • Simonetta Iarlori

    Chief of People

    • Tenure: 0yrs
  • Alessandra Genco

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Fabrizio Landi (66yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: €103.00k
  • Paolo Cantarella (75yo)

    Lead Independent Director

    • Tenure: 5.4yrs
    • Compensation: €102.00k
  • Dario Frigerio (57yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: €106.00k
  • Alessandro Profumo (62yo)

    CEO & Director

    • Tenure: 2.4yrs
  • Silvia Merlo (51yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: €107.00k
  • Gianni De Gennaro (71yo)

    Chairman

    • Tenure: 6.3yrs
    • Compensation: €243.00k
  • Guido Alpa (72yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: €108.00k
  • Marina Calderone (54yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: €95.00k
  • Marta Dassù (64yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: €102.00k
  • Luca Rossi (52yo)

    Chairman of Statutory Auditors

    • Tenure: 0.9yrs

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: €6.088b
  • Shares outstanding: 574.85m
  • Website: https://www.leonardocompany.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FINM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
LDOBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
FMNBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0ONGLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
LDOMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
LDOWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
FINM.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:43
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.