L3Harris Technologies, Inc. (LHX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lockheed Martin Corp.

Howmet Aerospace, Inc.

General Dynamics Corp.

L3Harris Technologies, Inc.

RTX Corp.

Teledyne Technologies, Inc.

The Boeing Co.

Northrop Grumman Corp.

Textron, Inc.

Honeywell International, Inc.

TransDigm Group, Inc.

Why is L3Harris Technologies, Inc. ?

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 2,507 MM
ROCE(HY) Highest at 8.9%
INVENTORY TURNOVER RATIO(HY) Highest at 12.35 times

With ROCE of 7.12%, it has a fair valuation with a 1.86 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 26.65%, its profits have risen by 1.1% ; the PEG ratio of the company is 12.9

Market Beating Performance

The stock has generated a return of 26.65% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to L3Harris Technologies, Inc. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is L3Harris Technologies, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

L3Harris Technologies, Inc.

4.7%

1.40

22.15%

S&P 500

22.36%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.74%

EBIT Growth (5y)

3.18%

EBIT to Interest (avg)

5.77

Debt to EBITDA (avg)

2.84

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

0.66

Tax Ratio

8.66%

Dividend Payout Ratio

56.31%

Pledged Shares

Institutional Holding

92.84%

ROCE (avg)

7.44%

ROE (avg)

9.66%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.26

EV to EBIT

31.81

EV to EBITDA

20.87

EV to Capital Employed

2.49

EV to Sales

3.40

PEG Ratio

6.20

Dividend Yield

1.43%

ROCE (Latest)

7.83%

ROE (Latest)

8.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 3,292 MM

ROCE(HY)

Highest at 9.57%

INVENTORY TURNOVER RATIO(HY)

Highest at 14.04 times

DIVIDEND PER SHARE(HY)

Highest at USD 4.17

INTEREST COVERAGE RATIO(Q)

Highest at 737.98

RAW MATERIAL COST(Y)

Fallen by -7.03% (YoY

NET SALES(Q)

Highest at USD 5,881 MM

PRE-TAX PROFIT(Q)

Highest at USD 720 MM

NET PROFIT(Q)

Highest at USD 608.45 MM

EPS(Q)

Highest at USD 3.13

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 39.95%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.17 times

Here's what is working for L3Harris Technologies, Inc.

Operating Cash Flow

Highest at USD 3,292 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 737.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 14.04 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 4.17 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 5,881 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 720 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 608.45 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 3.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -7.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for L3Harris Technologies, Inc.

Debtors Turnover Ratio

Lowest at 4.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 39.95%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at USD 0.26 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income