Leonardo SpA (LDO) 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

Civitanavi Systems SpA

Leonardo SpA

Avio SpA

Porto Aviation Group SpA

Why is Leonardo SpA ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Net Sales has grown by an annual rate of -7.02% and Operating profit at -11.48% over the last 5 years
The company is Net-Debt Free

With ROE of 3.98%, it has a Very Expensive valuation with a 3.14 Price to Book Value

Over the past year, while the stock has generated a return of 12.06%, its profits have risen by 88.2% ; the PEG ratio of the company is 0.9

Underperformed the market in the last 1 year

The stock has generated a return of 12.06% in the last 1 year, much lower than market (Italy FTSE MIB) returns of 25.14%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Leonardo SpA for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Leonardo SpA

16.61%

8.66

41.79%

Italy FTSE MIB

27.29%

1.54

16.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.02%

EBIT Growth (5y)

-11.48%

EBIT to Interest (avg)

0.11

Debt to EBITDA (avg)

4.26

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

1.09

Tax Ratio

100.00%

Dividend Payout Ratio

29.69%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

4.78%

ROE (avg)

5.91%

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

3.14

EV to EBIT

46.55

EV to EBITDA

22.74

EV to Capital Employed

2.99

EV to Sales

2.37

PEG Ratio

0.89

Dividend Yield

1.21%

ROCE (Latest)

6.42%

ROE (Latest)

3.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at EUR 3,682 MM

ROCE(HY)

Highest at 13.2%

INTEREST COVERAGE RATIO(Q)

Highest at 1,134.91

RAW MATERIAL COST(Y)

Fallen by -19.17% (YoY

CASH AND EQV(HY)

Highest at EUR 3,238 MM

DEBT-EQUITY RATIO (HY)

Lowest at 13.09 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.35 times

DIVIDEND PER SHARE(HY)

Highest at EUR 2.35

NET SALES(Q)

Highest at EUR 10,584 MM

OPERATING PROFIT(Q)

Highest at EUR 1,203 MM

PRE-TAX PROFIT(Q)

Highest at EUR 1,003 MM

NET PROFIT(Q)

Highest at EUR 823.13 MM

EPS(Q)

Highest at EUR 1.25

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Leonardo SpA

Operating Cash Flow

Highest at EUR 3,682 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 (EUR MM)

Interest Coverage Ratio

Highest at 1,134.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at EUR 10,584 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (EUR MM)

Operating Profit

Highest at EUR 1,203 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (EUR MM)

Pre-Tax Profit

Highest at EUR 1,003 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (EUR MM)

Net Profit

Highest at EUR 823.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (EUR MM)

EPS

Highest at EUR 1.25

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (EUR)

Cash and Eqv

Highest at EUR 3,238 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 13.09 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.35 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at EUR 2.35

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (EUR)

Raw Material Cost

Fallen by -19.17% (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