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L3Harris Technologies Inc LHX

Morningstar Rating
$215.96 +6.15 (2.93%)
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Company Report

L3Harris Earnings: Still Putting the Pieces Together; Fair Value Estimate Unchanged

After L3Harris Technologies' release of 2023 results on Jan. 25, we are maintaining our fair value estimate for the narrow-moat defense contractor at $230 per share. There is still some noise in the system as the firm sorts through acquired businesses, writes down impairments, and endeavors to restructure some of its business units to be more efficient. Yet, we see a credible path to continued single-digit revenue growth and double-digit adjusted operating margins in each of the four principal operating segments.

Price vs Fair Value

LHX is trading at a 6% discount.
Price
$215.96
Fair Value
$411.00
Uncertainty
Medium
1-Star Price
$635.20
5-Star Price
$226.00
Economic Moat
Yncvt
Capital Allocation
Ptyjpml

Bulls Say, Bears Say

Bulls

L3Harris' strategy to position itself as the "sixth prime" U.S. defense contractor could offer growth potential if it is able to bid for programs it could not take on as a smaller and more specialized contractor.

Bears

L3Harris depends on U.S. military funding, which is an inherently political and thus uncertain process.

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News

Trading Information

Previous Close Price
$209.81
Day Range
$210.13217.13
52-Week Range
$160.25217.13
Bid/Ask
$213.03 / $215.96
Market Cap
$41.06 Bil
Volume/Avg
1.4 Mil / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
17.46
Price/Sales
2.12
Dividend Yield (Trailing)
2.11%
Dividend Yield (Forward)
2.15%
Total Yield
3.37%

Company Profile

L3Harris Technologies provides products for the command, control, communications, computers, intelligence, surveillance, and reconnaissance, or C4ISR, market. The firm produces uncrewed aerial vehicles, sensors, and avionics, as well as provides military and commercial training services and maintains the U.S. Federal Aviation Administration's communications infrastructure. In July 2023, the company acquired Aerojet Rocketdyne, a key supplier of rocket motors to the space and defense industry.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Mid Core
Total Number of Employees
50,000

Competitors

Valuation

Metric
LHX
NOC
LMT
Price/Earnings (Normalized)
17.4621.2215.47
Price/Book Value
2.184.6715.29
Price/Sales
2.121.781.61
Price/Cash Flow
18.3117.4013.37
Price/Earnings
LHX
NOC
LMT

Financial Strength

Metric
LHX
NOC
LMT
Quick Ratio
0.620.860.99
Current Ratio
1.011.151.21
Interest Coverage
3.255.309.84
Quick Ratio
LHX
NOC
LMT

Profitability

Metric
LHX
NOC
LMT
Return on Assets (Normalized)
5.59%5.27%12.76%
Return on Equity (Normalized)
11.37%15.47%78.91%
Return on Invested Capital (Normalized)
8.99%9.27%30.39%
Return on Assets
LHX
NOC
LMT
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GD
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