NYSE:LHX

Stock Analysis Report

Executive Summary

L3Harris Technologies, Inc. provides technology-based solutions that solve government and commercial customers’ mission-critical challenges in the United States and internationally.

Snowflake

Fundamentals

Solid track record with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has L3Harris Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

LHX

-0.07%

US Aerospace & Defense

-0.6%

US Market


1 Year Return

29.0%

LHX

4.4%

US Aerospace & Defense

0.6%

US Market

LHX outperformed the Aerospace & Defense industry which returned 5.8% over the past year.

LHX outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

LHXIndustryMarket
7 Day2.2%-0.07%-0.6%
30 Day-1.0%2.5%2.2%
90 Day7.5%6.5%1.1%
1 Year31.2%29.0%6.4%4.4%2.9%0.6%
3 Year145.5%133.3%60.3%51.5%44.6%35.2%
5 Year246.4%213.0%98.4%79.6%61.9%44.2%

Price Volatility Vs. Market

How volatile is L3Harris Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is L3Harris Technologies undervalued based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

L3Harris Technologies's share price is below the future cash flow value, but not at a moderate discount (< 20%).

L3Harris Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

L3Harris Technologies is overvalued based on earnings compared to the US Aerospace & Defense industry average.

L3Harris Technologies is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

L3Harris Technologies is poor value based on expected growth next year.


Price Based on Value of Assets

L3Harris Technologies is overvalued based on assets compared to the US Aerospace & Defense industry average.


Next Steps

Future Growth

How is L3Harris Technologies expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

19.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

L3Harris Technologies's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).

L3Harris Technologies's earnings are expected to grow by 19.6% yearly, however this is not considered high growth (20% yearly).

L3Harris Technologies's revenue growth is expected to exceed the United States of America market average.

L3Harris Technologies's earnings growth is expected to exceed the United States of America market average.

L3Harris Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

L3Harris Technologies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has L3Harris Technologies performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

L3Harris Technologies's year on year earnings growth rate has been positive over the past 5 years.

L3Harris Technologies's 1-year earnings growth exceeds its 5-year average (35.9% vs 15.1%)

L3Harris Technologies's earnings growth has exceeded the US Aerospace & Defense industry average in the past year (35.9% vs 13.7%).


Return on Equity

Whilst L3Harris Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

L3Harris Technologies used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

L3Harris Technologies has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is L3Harris Technologies's financial position?


Financial Position Analysis

L3Harris Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

L3Harris Technologies's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

L3Harris Technologies's level of debt (105.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (89% vs 105.5% today).

Debt is well covered by operating cash flow (33.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is L3Harris Technologies's current dividend yield, its reliability and sustainability?

1.55%

Expected Dividend Yield


Dividend Yield and Payments Analysis

L3Harris Technologies's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

L3Harris Technologies's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).


Next Steps

Management

What is the CEO of L3Harris Technologies's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Bill Brown (56yo)

7.8yrs

Tenure

US$15,723,532

Compensation

Mr. William M. Brown, also known as Bill, serves as Executive Chairman of L3Harris Technologies since April 25, 2014 and its Chief Executive Officer since November 1, 2011. Mr. Brown has been Director of L ...


CEO Compensation Analysis

Bill's remuneration is higher than average for companies of similar size in United States of America.

Bill's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

56yo

Average Age

The tenure for the L3Harris Technologies management team is about average.


Board Age and Tenure

2.2yrs

Average Tenure

67yo

Average Age

The average tenure for the L3Harris Technologies board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by L3Harris Technologies individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$200,80011 Sep 19
Thomas Dattilo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$200.80
BuyUS$140,00011 Sep 19
Sallie Bailey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares700
Max PriceUS$200.00
BuyUS$209,19005 Sep 19
Thomas Dattilo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$209.19
SellUS$615,14923 Aug 19
Thomas Corcoran
EntityIndividual
Shares2,894
Max PriceUS$212.56
BuyUS$1,992,73207 Aug 19
Lewis Hay
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,800
Max PriceUS$203.34
SellUS$12,07910 May 19
William Gattle
EntityIndividual
Shares76.74
Max PriceUS$157.40
SellUS$549,35506 May 19
William Gattle
EntityIndividual
Shares3,074
Max PriceUS$178.71

Ownership Breakdown


Management Team

  • Chris Kubasik (58yo)

    Vice Chairman

    • Tenure: 0.7yrs
  • Bill Brown (56yo)

    Executive Chairman & CEO

    • Tenure: 7.8yrs
    • Compensation: US$15.72m
  • Scott Mikuen (57yo)

    Senior VP

    • Tenure: 8.9yrs
    • Compensation: US$2.68m
  • Dana Mehnert (57yo)

    President of Communication Systems

    • Tenure: 4.2yrs
    • Compensation: US$2.53m
  • Todd Taylor (46yo)

    VP & Principal Accounting Officer

    • Tenure: 4.3yrs
  • Rahul Ghai (47yo)

    Executive Officer

    • Tenure: 0.3yrs
    • Compensation: US$3.16m
  • Anurag Maheshwari

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Ross Niebergall

    VP & CTO

    • Tenure: 2.1yrs
  • Jay Malave (50yo)

    Senior VP & CFO

    • Tenure: 0.3yrs
  • Omar Fathi

    VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Tom Dattilo (68yo)

    Independent Director

    • Tenure: 18.1yrs
    • Compensation: US$288.37k
  • Chris Kubasik (58yo)

    Vice Chairman

    • Tenure: 0.7yrs
  • Sallie Bailey (59yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$257.54k
  • Fig Newton (76yo)

    Director

    • Tenure: 0.3yrs
  • Robert Millard (68yo)

    Lead Independent Director

    • Tenure: 0.3yrs
  • Lew Hay (63yo)

    Independent Director

    • Tenure: 17.6yrs
    • Compensation: US$308.37k
  • Roger Fradin (66yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$274.20k
  • Lew Kramer (71yo)

    Director

    • Tenure: 0.3yrs
  • Bill Brown (56yo)

    Executive Chairman & CEO

    • Tenure: 7.8yrs
    • Compensation: US$15.72m
  • Peter Chiarelli (69yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$269.20k

Company Information

L3Harris Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: L3Harris Technologies, Inc.
  • Ticker: LHX
  • Exchange: NYSE
  • Founded: 1895
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$46.992b
  • Shares outstanding: 221.68m
  • Website: https://www.l3harris.com

Number of Employees


Location

  • L3Harris Technologies, Inc.
  • 1025 West NASA Boulevard
  • Melbourne
  • Florida
  • 32919
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LHXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
HRSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0L3HLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

L3Harris Technologies, Inc. provides technology-based solutions that solve government and commercial customers’ mission-critical challenges in the United States and internationally. The company operates in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:36
End of Day Share Price2019/09/20 00:00
Earnings2019/06/28
Annual Earnings2019/06/28


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.