L3Harris Technologies
Market Cap
US$43.3b
Last Updated
2021/04/19 23:00 UTC
Data Sources
Company Financials +
Executive Summary
L3Harris Technologies, Inc., an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet established dividend payer.
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
Stable Share Price: LHX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: LHX's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.07%
LHX
0.6%
US Aerospace & Defense
1.3%
US Market
1 Year Return
7.6%
LHX
18.4%
US Aerospace & Defense
53.8%
US Market
Return vs Industry: LHX underperformed the US Aerospace & Defense industry which returned 18.3% over the past year.
Return vs Market: LHX underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| LHX | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.07% | 0.6% | 1.3% |
| 30 Day | 6.2% | 4.7% | 5.1% |
| 90 Day | 10.3% | 12.0% | 8.9% |
| 1 Year | 9.7%7.6% | 21.0%18.4% | 56.6%53.8% |
| 3 Year | 30.6%24.1% | 16.4%-6.3% | 64.4%53.6% |
| 5 Year | 191.4%166.3% | 83.7%35.9% | 120.4%95.7% |
Long-Term 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
2 days ago | Simply Wall St
Shareholders Will Probably Not Have Any Issues With L3Harris Technologies, Inc.'s (NYSE:LHX) CEO Compensation1 week ago | Simply Wall St
Shareholders Of L3Harris Technologies (NYSE:LHX) Must Be Happy With Their 194% Total Return2 weeks ago | Simply Wall St
Are Investors Undervaluing L3Harris Technologies, Inc. (NYSE:LHX) By 31%?Valuation
Is L3Harris Technologies undervalued compared to its fair value and its price relative to the market?
28.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LHX ($210.72) is trading below our estimate of fair value ($292.53)
Significantly Below Fair Value: LHX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LHX is poor value based on its PE Ratio (40.2x) compared to the US Aerospace & Defense industry average (33.6x).
PE vs Market: LHX is poor value based on its PE Ratio (40.2x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: LHX is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: LHX is good value based on its PB Ratio (2.1x) compared to the US Aerospace & Defense industry average (3x).
Future Growth
How is L3Harris Technologies forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
16.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LHX's forecast earnings growth (16.3% per year) is above the savings rate (2%).
Earnings vs Market: LHX's earnings (16.3% per year) are forecast to grow slower than the US market (18% per year).
High Growth Earnings: LHX's earnings are forecast to grow, but not significantly.
Revenue vs Market: LHX's revenue (4.3% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: LHX's revenue (4.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LHX's Return on Equity is forecast to be low in 3 years time (14.4%).
Past Performance
How has L3Harris Technologies performed over the past 5 years?
26.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LHX has a large one-off loss of $987.0M impacting its January 1 2021 financial results.
Growing Profit Margin: LHX's current net profit margins (6.2%) are lower than last year (8.9%).
Past Earnings Growth Analysis
Earnings Trend: LHX's earnings have grown significantly by 26.4% per year over the past 5 years.
Accelerating Growth: LHX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LHX had negative earnings growth (-31.7%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-1.3%).
Return on Equity
High ROE: LHX's Return on Equity (5.2%) is considered low.
Financial Health
How is L3Harris Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: LHX's short term assets ($6.7B) exceed its short term liabilities ($4.2B).
Long Term Liabilities: LHX's short term assets ($6.7B) do not cover its long term liabilities ($11.9B).
Debt to Equity History and Analysis
Debt Level: LHX's debt to equity ratio (33.2%) is considered satisfactory.
Reducing Debt: LHX's debt to equity ratio has reduced from 154.3% to 33.2% over the past 5 years.
Debt Coverage: LHX's debt is well covered by operating cash flow (40.3%).
Interest Coverage: LHX's interest payments on its debt are well covered by EBIT (10.1x coverage).
Balance Sheet
Dividend
What is L3Harris Technologies's current dividend yield, its reliability and sustainability?
1.94%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LHX's dividend (1.94%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: LHX's dividend (1.94%) is low compared to the top 25% of dividend payers in the US market (3.46%).
Stability and Growth of Payments
Stable Dividend: LHX's dividends per share have been stable in the past 10 years.
Growing Dividend: LHX's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (64.9%), LHX's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LHX's dividends in 3 years are forecast to be well covered by earnings (33.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Bill Brown (57 yo)
9.42yrs
Tenure
US$15,452,653
Compensation
Mr. William M. Brown, also known as Bill, serves as Executive Chairman of L3Harris Technologies since April 25, 2014 and its Chief Executive Officer since November 1, 2011. Mr. Brown has been Director of L...
CEO Compensation Analysis
Compensation vs Market: Bill's total compensation ($USD15.45M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: LHX's management team is seasoned and experienced (5.8 years average tenure).
Board Members
Experienced Board: LHX's board of directors are not considered experienced ( 2.4 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$43.317b
- Shares outstanding: 205.57m
- Website: https://www.l3harris.com
Number of Employees
Location
- L3Harris Technologies, Inc.
- 1025 West NASA Boulevard
- Melbourne
- Florida
- 32919
- United States
Listings
Biography
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 seg...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/19 23:00 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2021/01/01 |
| Annual Earnings | 2021/01/01 |
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.