L3Harris Technologies Inc
Exchange: NYSESector: IndustrialsIndustry: Aerospace & Defense
Harris Corporation is a leading technology innovator, solving customers’ toughest mission-critical challenges by providing solutions that connect, inform and protect. Harris supports government and commercial customers in more than 100 countries and has approximately $6 billion in annual revenue. The company is organized into three business segments: Communication Systems, Electronic Systems and Space and Intelligence Systems.
Did you know?
Earnings per share grew at a 17.4% CAGR.
Current Price
$353.59
-1.22%GoodMoat Value
$209.27
40.8% overvaluedProfile
Valuation (TTM)
Market Cap$66.14B
P/E41.18
EV$74.00B
P/B3.37
Shares Out187.05M
P/Sales3.02
Revenue$21.86B
EV/EBITDA20.12
L3Harris Technologies Inc (LHX) Stock Analysis
GoodMoat Analysis
L3Harris Technologies is a major aerospace & defense contractor, but it fails the initial quality and moat screening for a value investor. Its low moat score and weak financial metrics, combined with a price significantly above the GoodMoat target, make it an unfavourable candidate for further analysis under this framework.
Read full analysis
L3Harris Technologies is a large-scale aerospace and defense contractor, providing advanced communications, electronic warfare, and space systems primarily to U.S. government agencies. Applying the GoodMoat framework, the company shows limited evidence of a durable competitive advantage. A preliminary moat assessment would likely yield a low score, as its primary advantages stem from regulatory barriers and long-term government contracts (Switching Costs), but it lacks the high-return profile typical of a wide-moat business. Crucially, the company fails the Step 1 'Moat & Quality Gate.' Key quality indicators are weak: an ROE of 8.2% is well below the 15-20% high-quality threshold, revenue growth is minimal at 2.3% YoY, and the profit margin of 7.3% is low. The P/E of 41x is very high for this growth profile. The valuation is deeply unfavourable, with the current price of $353.2 trading 69% above the GoodMoat target of $209.27, indicating a severe lack of margin of safety. Given the failure to pass the initial quality screen and the extreme overvaluation, L3Harris is classified as unfavourable under the Decision Framework and not worth deeper investigation for a value investor seeking high-quality businesses at reasonable prices. Analysis based on data as of 2024-05-15.
Market Cap$66.14B
Current Price$353.59
P/E Ratio41.18
Forward P/E—
PEG Ratio-1.27
EPS$8.53
Book Value$104.97
P/B Ratio3.37
LHX Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 17.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 9.4B
Revenue
6.8B
FY19
18.2B
FY21
17.8B
FY21
17.1B
FY22
19.4B
FY23
21.3B
FY25
21.9B
FY26
Net Income
949M
FY19
1.1B
FY21
1.8B
FY21
1.1B
FY22
1.2B
FY23
1.5B
FY25
1.6B
FY26
LHX 52-Week Range
$210.54
$377.19
50-Day MA: $353.91200-Day MA: $302.25
Did you know?
Free cash flow has been growing at 17.4% annually.
L3Harris Technologies Inc (LHX) Financial Summary
L3Harris Technologies Inc (LHX) is a Industrials company in the Aerospace & Defense industry, listed on NYSE. The stock currently trades at $353.59 with a market capitalization of $66.14B.
Key valuation metrics include a P/E ratio of 41.18, price-to-book ratio of 3.37, and EPS of $8.53. The company reports a profit margin of 7.3% and return on equity of 8.2%.
LHX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $66.14B |
| P/E Ratio | 41.18 |
| EPS | $8.53 |
| P/B Ratio | 3.37 |
| P/S Ratio | 3.02 |
| EV/EBITDA | 20.12 |
| Dividend Yield | 1.37% |
| Profit Margin | 7.3% |
| Return on Equity | 8.2% |
| Debt/Equity | 0.53 |
LHX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $6.80B | $949.00M |
| FY21 | $18.19B | $1.12B |
| FY21 | $17.81B | $1.12B |
| FY22 | $17.06B | $1.06B |
| FY23 | $19.42B | $1.23B |
| FY25 | $21.32B | $1.50B |
| FY26 | $21.86B | $1.61B |
L3Harris Technologies Inc (LHX) Valuation
Based on GoodMoat's DCF model, L3Harris Technologies Inc has a fair value estimate of $209.27. At the current price of $353.59, the stock appears 69.0% overvalued relative to our intrinsic value estimate.
LHX Quality Indicators
L3Harris Technologies Inc maintains a profit margin of 7.3% and an operating margin of 9.7%. Return on equity stands at 8.2%. The current ratio is 1.19. Debt-to-equity ratio is 0.53.
About L3Harris Technologies Inc
Harris Corporation is a leading technology innovator, solving customers’ toughest mission-critical challenges by providing solutions that connect, inform and protect. Harris supports government and commercial customers in more than 100 countries and has approximately $6 billion in annual revenue. The company is organized into three business segments: Communication Systems, Electronic Systems and Space and Intelligence Systems.
LHX Free Cash Flow
L3Harris Technologies Inc generated $2.68B in trailing twelve-month free cash flow, representing an FCF yield of 4.06%. This moderate FCF yield indicates reasonable cash generation.
LHX Shares Outstanding
L3Harris Technologies Inc has 0.19 billion shares outstanding at a share price of $353.59, giving it a market capitalization of $66.14B.
LHX Recent Insider Trades
Recent insider transactions at L3Harris Technologies Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| RAMBEAU JON (Pres., Coms. & Spec. Dom.) | SELL | 5,528 | $2.05M |
| MEHTA SAMIR (Pres., Space & Mission Sys.) | SELL | 5,528 | $2.05M |
| Rakita Melanie (Vice President & CHRO) | SELL | 2,378 | $811968.10 |