L3harris Technologies, Inc.

Industrials
Industrial Machinery/Components
www.l3harris.com

Earnings Score
Moat Score
Safety Score

Market Cap $46.63B
PE 40
Debt $13.25B
Cash $547.00M
EV $59.34B
FCF $1.49B

Earnings

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Sales & Net Margins

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Earnings	$1.16B
EBIT	$1.49B
ROE	6%
ROA	4%
FCF	$1.49B
Equity	$18.90B
Growth Stability	87%
PE	40.17
PEG	4.6
PB	2.47
P/FCF	31.4
P/S	2.25
Price/Cash	0.01
Debt/Equity	0.7
Debt/FCF	8.92
Net Margins	6%
Gross Margins	26%
Op. Margins	7%
Earnings CAGR	24%
Sales Growth YoY	13%
Sales Growth QoQ	2%
Sales CAGR	22%
FCF CAGR	19%
Equity CAGR	34%
Earnings Stability	0.52
Earnings Growth YoY	5%
Earnings Growth QoQ	29%

Earnings CAGR 5Y	9%
Sales CAGR 5Y	14%
FCF CAGR 5Y	8%
Equity CAGR 5Y	-5%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	-14%
Equity CAGR 3Y	-1%
Market Cap	$46.63B
Revenue	$20.77B
Dividend Yield	2%
Payout Ratio	76%
Assets	$41.66B
Total Debt	$13.25B
Cash	$547.00M
Shares Outstanding	189.7M
EV	59.34B
Earnings Score	80%
Moat Score	65%
Safety Score	77%
Final Score	74%
Working Capital	-934M
Current Ratio	0.9
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	2%

Assets & ROA

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Stockholders Equity & ROE

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L3Harris Technologies was created in 2019 from the merger of L3 Technologies and Harris, two defense contractors that provide products for the command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) market. The firm also has smaller operations serving the civil government, particularly the Federal Aviation Administration's communication infrastructure, and produces various avionics for defense and commercial aviation.

SEC Filings

Direct access to L3harris Technologies, Inc. (LHX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jun 28
- 10-Q Mar 29
2023
- 10-K Dec 29
- 10-Q Sep 29
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01

Sector Comparison

How does L3harris Technologies, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of L3harris Technologies, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 24%

Stability 52%

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Discounted Cash Flow

Fully customizable DCF calculator online for L3harris Technologies, Inc. .

Years

Calculation mode

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.5B	$1.8B	$2.1B	$2.5B	$2.9B	$3.5B	$4.1B	$4.9B	$5.8B	$6.9B	$8.2B	$82B
DCF		$1.6B	$1.7B	$1.9B	$2B	$2.2B	$2.3B	$2.5B	$2.7B	$2.9B	$3.2B	$32B
Value	$55B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	07/2015	06/2016	06/2017	06/2018	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	7%	5%	9%	12%	6%	10%	6%	6%	6%
ROA	-	9%	11%	11%	7%	10%	5%	3%	4%
ROE	-	11%	19%	22%	5%	10%	6%	6%	6%

Bad Net Margins (6.18%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	07/2015	06/2016	06/2017	06/2018	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	6.33	10	6.58	2.86	3.01	4.12	7.97	8.92
Debt over Equity	1.56	1.6	1.54	1.22	0.33	0.37	0.42	0.7	0.7
Growth Stability	-	-	-	100%	100%	100%	87%	90%	87%

Bad Debt/FCF ratio (8.92)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.7)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (87%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	07/2015	06/2016	06/2017	06/2018	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	18%	-2%	5%	194%	-2%	-4%	14%	14%
Earnings YoY growth	-	-3%	71%	30%	51%	70%	-42%	13%	9%
Equity YoY growth	-	-10%	-4%	13%	527%	-7%	-4%	1%	-5%
FCF YoY growth	-	9%	-42%	37%	294%	-3%	-19%	-14%	8%