BIT:LDO

Stock Analysis Report

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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, North America, and internationally. More Details


Snowflake Analysis

Undervalued 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.4%

LDO

-8.0%

IT Aerospace & Defense

-3.7%

IT Market


1 Year Return

-53.9%

LDO

-35.5%

IT Aerospace & Defense

-15.8%

IT Market

Return vs Industry: LDO underperformed the Italian Aerospace & Defense industry which returned -35.5% over the past year.

Return vs Market: LDO underperformed the Italian Market which returned -15.8% over the past year.


Shareholder returns

LDOIndustryMarket
7 Day-9.4%-8.0%-3.7%
30 Day-14.6%-10.9%-4.6%
90 Day-16.7%-4.5%-2.3%
1 Year-52.9%-53.9%-35.0%-35.5%-13.7%-15.8%
3 Year-66.9%-68.5%-19.5%-24.1%-14.1%-21.9%
5 Year-53.1%-55.9%16.6%5.2%-4.5%-26.3%

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?

16.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LDO (€4.99) is trading below our estimate of fair value (€5.97)

Significantly Below Fair Value: 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 (5.4x) compared to the XE Aerospace & Defense industry average (18.4x).

PE vs Market: LDO is good value based on its PE Ratio (5.4x) compared to the Italian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: LDO is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: LDO is good value based on its PB Ratio (0.6x) compared to the XE Aerospace & Defense industry average (1.7x).


Next Steps

Future Growth

How is Leonardo forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LDO's forecast earnings growth (25.2% per year) is above the savings rate (2%).

Earnings vs Market: LDO's earnings (25.2% per year) are forecast to grow faster than the Italian market (23.6% per year).

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

Revenue vs Market: LDO's revenue (4.5% per year) is forecast to grow faster than the Italian market (3.5% per year).

High Growth Revenue: LDO's revenue (4.5% 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 (10.6%).


Next Steps

Past Performance

How has Leonardo performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LDO has a large one-off loss of €222.0M impacting its June 30 2020 financial results.

Growing Profit Margin: LDO's current net profit margins (3.8%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: LDO's earnings have grown by 18.6% 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 (-7%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-7.7%).


Return on Equity

High ROE: LDO's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Leonardo's financial position?


Financial Position Analysis

Short Term Liabilities: LDO's short term assets (€13.8B) do not cover its short term liabilities (€15.3B).

Long Term Liabilities: LDO's short term assets (€13.8B) exceed its long term liabilities (€5.6B).


Debt to Equity History and Analysis

Debt Level: LDO's debt to equity ratio (105.4%) is considered high.

Reducing Debt: LDO's debt to equity ratio has reduced from 142.8% to 105.4% over the past 5 years.

Debt Coverage: LDO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LDO's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LDO's dividend (2.81%) is higher than the bottom 25% of dividend payers in the Italian market (1.65%).

High Dividend: LDO's dividend (2.81%) is low compared to the top 25% of dividend payers in the Italian market (5.43%).


Stability and Growth of Payments

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 (15.3%), LDO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LDO's dividends in 3 years are forecast to be well covered by earnings (16.1% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Alessandro Profumo (63 yo)

3.33yrs

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

NamePositionTenureCompensationOwnership
Alessandro Profumo
CEO & Director3.33yrsno datano data
Alessandra Genco
Chief Financial Officerno datano datano data
Roberto Cingolani
Chief Technology & Innovation Officer1.67yrsno datano data
Valeria Ricciotti
Head of Investor Relations & Credit Rating Agenciesno datano datano data
Andrea Parrella
Group General Counsel of Legalno datano datano data
Gianbattista Vittorioso
Communication Director0.83yrno datano data
Giuseppe Maresca
Senior Vice President of Marketing & Commercial Affairsno datano datano data
Simonetta Iarlori
Chief of Peopleno datano datano data
Giovanni Soccodato
Chief Strategic Equity Officerno datano datano data
Francesco Mantovani
Senior Vice President of HR Development and Educationno datano datano data
Luigi Calabria
Head of Group Financeno datano datano data
Gian Cutillo
MD of the Helicopters Divisionno datano datano data

1.7yrs

Average Tenure

Experienced Management: LDO's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alessandro Profumo
CEO & Director3.33yrsno datano data
Dario Frigerio
Independent Director7.17yrs€106.00kno data
Pierfrancesco Barletta
Independent Director0.67yrno datano data
Marina Rubini
Independent Director6.33yrs€103.00kno data
Patrizia Giangualano
Independent Director0.67yrno datano data
Luca Rossi
Chairman of Statutory Auditors1.33yrsno datano data
Luciano Carta
Chairman0.33yrno datano data
Carmine America
Independent Director0.67yrno datano data
Elena Comparato
Director0.67yrno datano data
Paola Giannetakis
Independent Director0.67yrno datano data
Maurizio Pinnarò
Independent Director0.67yrno datano data
Federica Guidi
Independent Director0.67yrno datano data

0.7yrs

Average Tenure

52.5yo

Average Age

Experienced Board: LDO's board of directors are not considered experienced ( 0.7 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: €2.866b
  • Shares outstanding: 575.01m
  • 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

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, defense electronics and security systems, aeronautics, space, and other businesses in Italy, the United Kingdom, rest of Europe, North America, and international ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 03:25
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.