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.

Rewards

Trading at 25.4% below its fair value

Earnings are forecast to grow 16.78% per year

Earnings grew by 55.4% over the past year

Pays a high and reliable dividend of 1.5%

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

LHX

0.4%

US Aerospace & Defense

0.8%

US Market


1 Year Return

34.8%

LHX

25.9%

US Aerospace & Defense

22.0%

US Market

Return vs Industry: LHX exceeded the US Aerospace & Defense industry which returned 25.8% over the past year.

Return vs Market: LHX exceeded the US Market which returned 21.1% over the past year.


Shareholder returns

LHXIndustryMarket
7 Day4.0%0.4%0.8%
30 Day-1.2%-1.8%1.7%
90 Day-6.5%-0.3%5.2%
1 Year36.9%34.8%28.3%25.9%24.7%22.0%
3 Year102.3%92.5%51.5%43.4%46.9%37.3%
5 Year203.1%174.8%86.6%68.7%65.5%47.3%

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 compared to its fair value and its price relative to the market?

25.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LHX ($200.18) is trading below our estimate of fair value ($268.27)

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 (24.8x) compared to the Aerospace & Defense industry average (21.2x).

PE vs Market: LHX is poor value based on its PE Ratio (24.8x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: LHX is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: LHX is good value based on its PB Ratio (1.9x) compared to the US Aerospace & Defense industry average (2.7x).


Next Steps

Future Growth

How is L3Harris Technologies forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LHX's forecast earnings growth (16.8% per year) is above the savings rate (1.7%).

Earnings vs Market: LHX's earnings (16.8% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: LHX's revenue (8.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: LHX's revenue (8.9% 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 (11.6%).


Next Steps

Past Performance

How has L3Harris Technologies performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LHX has high quality earnings.

Growing Profit Margin: LHX's current net profit margins (12%) are higher than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: LHX's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: LHX's earnings growth over the past year (55.4%) exceeds its 5-year average (18.2% per year).

Earnings vs Industry: LHX earnings growth over the past year (55.4%) exceeded the Aerospace & Defense industry 8.7%.


Return on Equity

High ROE: LHX's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is L3Harris Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: LHX's short term assets ($7.0B) exceed its short term liabilities ($4.7B).

Long Term Liabilities: LHX's short term assets ($7.0B) do not cover its long term liabilities ($11.3B).


Debt to Equity History and Analysis

Debt Level: LHX's debt to equity ratio (30.4%) is considered satisfactory.

Reducing Debt: LHX's debt to equity ratio has reduced from 90.7% to 30.4% over the past 5 years.

Debt Coverage: LHX's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: LHX's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet

Inventory Level: LHX has a low level of unsold assets or inventory.

Debt Coverage by Assets: LHX's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: LHX's dividend (1.5%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: LHX's dividend (1.5%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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 reasonably low payout ratio (34.7%), LHX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LHX's dividends in 3 years are forecast to be well covered by earnings (24.2% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Bill Brown (56yo)

8.1yrs

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

Compensation vs Market: Bill's total compensation ($USD15.72M) is above average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.5yrs

Average Tenure

57yo

Average Age

Experienced Management: LHX's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

67yo

Average Age

Experienced Board: LHX's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.9%.


Management Team

  • Chris Kubasik (58yo)

    Vice Chairman

    • Tenure: 0.9yrs
  • Bill Brown (56yo)

    Executive Chairman & CEO

    • Tenure: 8.1yrs
    • Compensation: US$15.72m
  • Scott Mikuen (57yo)

    Senior VP

    • Tenure: 9.2yrs
    • Compensation: US$2.68m
  • Dana Mehnert (57yo)

    President of Communication Systems

    • Tenure: 4.4yrs
    • Compensation: US$2.53m
  • Terry Feiser (63yo)

    Vice President of Internal Audit & Compliance

    • Tenure: 12.8yrs
  • Todd Taylor (46yo)

    VP & Principal Accounting Officer

    • Tenure: 4.6yrs
  • Anurag Maheshwari

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Ross Niebergall

    VP & CTO

    • Tenure: 2.3yrs
  • Jay Malave (50yo)

    Senior VP & CFO

    • Tenure: 0.5yrs
  • Omar Fathi

    VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Tom Dattilo (68yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$288.37k
  • Chris Kubasik (58yo)

    Vice Chairman

    • Tenure: 0.9yrs
  • Sallie Bailey (59yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$257.54k
  • Fig Newton (76yo)

    Independent Director

    • Tenure: 0.5yrs
  • Robert Millard (68yo)

    Lead Independent Director

    • Tenure: 0.5yrs
  • Lew Hay (63yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$308.37k
  • Roger Fradin (66yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$274.20k
  • Lew Kramer (71yo)

    Independent Director

    • Tenure: 0.5yrs
  • Bill Brown (56yo)

    Executive Chairman & CEO

    • Tenure: 8.1yrs
    • Compensation: US$15.72m
  • Peter Chiarelli (69yo)

    Independent Director

    • Tenure: 7.3yrs
    • 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$44.253b
  • Shares outstanding: 221.06m
  • 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
LHXTWBAG (Wiener Boerse AG)YesCommon StockATEURJan 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 Analysis2019/12/15 23:39
End of Day Share Price2019/12/13 00:00
Earnings2019/09/27
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.