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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
LHX
Primary Facts
Aerospace & Defense
Name:
-
Sector:
- 16000.00K
Industry:
227.2
CEO:
Mr. William Brown
Total Employees:
Large Cap
Our Technological Advancement Rating
Our Rating:
0.11804129
-1.392818223
L3Harris Technologies, Inc. (XNYS:LHX) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
L3HARRIS TECHNOLOGIES, INC. (XNYS:LHX)
One Month Price Target:
Six Month Price Target :
$228.07
Likely Price in One Year's Time:
Ticker:
$232.44
Likely Trading Range Today Under (Normal Volatility)
$228.06
Price Upper limit ($) :
$237.68
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P310
This week:
$217.96
This month :
$206.55
Other Primary facts
Market Cap:
191.35M
Market Cap Classification:
43.97B
Number of Shares
IPO Date:
D
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-14.3%
$185.89
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$250.37
10.98%
$204.03
$270.06
Medium risk (<10%) entry points
Buy Call
Sell Call
$239.76
Buy Put:
Sell Put:
$184.34
$214.64
$243.97
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Aerospace & Defense
Sharpe Ratio:
LHX, is amongst the top 60% highest yielding stocks in terms of daily returns
Comparison:
1.08%
0.423661471
Sharpe ratio is 42.37% higher than the industry
Average Returns/Yield of
Aerospace & Defense
Daily returns:
1
Weekly returns:
0.04%
Monthly returns:
0.20%
Yearly returns:
9.53%
Comparison of returns:
-0.087036839
Classification:
Average annual returns/yield (last 3 years) is -8.70% below industry average
Results of T-Test of Returns:
LHX is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.55
Volatility (measured by Standard Deviation)
Daily Volatility:
& is -32.24% lower than the market/S&P 500 average
Weekly Volatility:
2.00%
Monthly Volatility:
4.47%
Yearly Volatility:
8.94%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
38.96%
-72.77%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -72.77% below long-term volatility
Weekly VaR:
-4.07%
Monthly VaR:
-9.09%
How Much Can the price of
Aerospace & Defense
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: Medium (<50%)
Worst case (decline):
$191.70
This translates to price declining to:
-16%
This translates to price declining to:
-62.98%
Severe Crash Probability
-18.18%
What is Value at Risk (VaR)?
Risk Fundamentals
9.93%
LHX is a 28.32% riskier investment compared to the market/S&P 500 & is 9.93% riskier than Nasdaq (IXIC)
LHX is a 28.32% riskier investment compared to the market/S&P 500
Beta Examination of
Aerospace & Defense
0.686
Expected beta in 1 year's time:
0.656
Expected beta in 3 year's time:
0.661
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--0.69
Beta in relation to Nasdaq (XNAS):
Returns are, approximately, symmetrical
Beta in relation to all global stocks::
Beta is -31.86% below industry average
Beta Comparison & Analysis
Beta of competitors/peers::
0.521
-0.322
Average Industry Beta:
Beta is -32.21% lower than peers
-0.318598426
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is -16.07% below industry mean WACC
-73.33%
Alpha provided | Alpha Analysis
Alpha provided:
0.935
3.265
1.071
Analysis of Cost of Capital of
Aerospace & Defense
Equity cost of capital:
Alpha is 107% higher than market/& is unsustainably high
-0.219
Unlevered (without debt) cost of capital:
Equity cost of capital is -21.87% below industry mean WACC
Before-tax cost of debt:
5.96%
After-tax cost of debt:
3.41%
Overall debt rating:
2.69%
Weighted average cost of capital (WACC):
3.41%
-16.07%
Key Per-Share Metrics & Analysis
Revenue per share:
Present value of the expected future dividends only: $126.12
Revenue growth rate per share of (3Y):
Price to sales ratio is -73.65% below the industry mean
-33.60%
EPS:
One Billion Seven Hundred Eighty-Nine Million Eight Hundred Eighty Thousand Dollars
Expected Annual growth rate of EPS (3Y):
Price to free cash flow ratio is -68.00% lower than the industry
-44.77%
Free cash flow (FCF) per share:
Price to book ratio is -19.47% below the industry mean
-
-300.5409269
Debt per share
Debt repayment rate in last quarter: 0.07%
EBITDA per share
Each employee generates 99% more EBITDA than industry average revenue per employee
Valuation Analysis Today of
Aerospace & Defense
P/E Ratio:
Sustainable growth rate is -73.33% below industry average
P/E Ratio of Competitors/Peers:
23.42
-0.501707298
436.0900312
-0.479006664
$8.86
Share value as per dividend discount (DDM) model: $155.92
P/S (Price to Sales ratio):
$90.67
-0.736456937
P/B (Price to book value ratio):
Price to sales ratio is -73.65% below the industry mean
-
-0.680005749
Net income growth rate (3Y):
Annual revenue growth rate is -33.60% below industry average
482.98%
Dividend Analysis
Net income growth rate is 482.98% higher than the average industry net income growth rate
Dividend payout rate: 11.76%
$1.12
Previous Dividend: $1.12
Previous adjusted dividend: $1.12
Previous Dividend: $4.28
Expected next dividend best case: $1.22
Expected next dividend worst case: $1.02
Average dividend payment (long-term): $0.95
Average dividend increase/decrease (growth rate) % per period: 4.31%
Expected next dividend payment date: 15/09/2022
Expected next dividend record date: 09/01/2022
-
Previous dividend payment date: 17/06/2022
Previous dividend record date: 06/03/2022
Dividend History:
-
2022-03-10--$1.12
2021-09-02--$1.02
2022-06-02--$1.12
2021-11-18--$1.02
2021-05-28--$1.02
-1.326073101
In-depth Debt & Leverage Analysis
Debt to equity ratio:
38.60%
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 1.8 years
Debt to assets ratio:
21.59%
Net debt to assets ratio:
39.31%
-59.03%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -59.03% below industry average
0.58
Looking forward:
Debt growth rate:
1.3x
-97.48%
0.07%
Analysis of Key Statistics
Correlation of price movement with the market:
19.06030094
Statistical significance of correlation:
-0.30%
Average Correlation of the industry with the market:
0.589
8.74%
R Squared (percentage of price movement explained by movement of the market):
0.589
Correlation of price movement with Nasdaq (^IXIC):
0.347
Covariance of price movement with the market:
0.039
Kurtosis
0.045
8.309
Skewness of returns:
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
-0.238
Fundamental Analysis & Dupont Analysis of
Aerospace & Defense
Gross Profit Margin Ratio:
5.23B
Operating Profit Margin Ratio:
Net profit margin is -102.15% lower than the industry
-102.36%
Net Profit Margin Ratio:
5.23B
Effective Tax Rate:
4.48%
-0.189215723
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is 25.97% higher than the industry
21.47%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is -102.36% lower than the industry
25.97%
Financial Leverage:
Interest coverage ratio is 58.03% more than industry average
Current Ratio:
Return on equity (ROE) is 21.47% higher than the industry
-0.583333022
Cash Conversion Cycle (days):
$39.57
-0.933049312
Current ratio is -58.33% below industry average
Stock based compensation to net income ratio:
Equity growth rate per share is -30054.09% lower than the industry
In-depth Efficiency Analysis
Revenue generated per employee:
Cash conversion cycle is -93.30% below industry average
0.071355705
EBITDA generated per employee:
Each employee generates 7% more revenue than industry average revenue per employee
0.9928648
Profit generated per employee:
$18.34
513%
Free cash flow (FCF) generated per employee:
Each employee generates 513% more net income/profit than industry average revenue per employee
-0.853372106
Assets/Capital per employee
Each employee generates -85% less free cash flow than industry average revenue per employee
-0.853372106
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Aerospace & Defense
$337.17
IHS Markit Ltd. (XNYS:INFO)
Trane Technologies plc (XNYS:TT)
Enbridge Inc. (XNYS:ENBA)
JOHNSON CONTROLS INTERNATIONAL PLC (XNYS:JCI)
THOMSON REUTERS CORPORATION (XNYS:TRI)
PARKER-HANNIFIN CORPORATION (XNYS:PH)
CARRIER GLOBAL CORPORATION (XNYS:CARR)
CUMMINS INC. (XNYS:CMI)
Current Analyst Ratings
$9.28
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Income Statement
Period:
4/1/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
17.35B
12.12B
121%
-
-
3.19B
-
-
15.31B
-
267.00M
948.00M
81%
441.00M
251.00M
53%
441.00M
Statement of Cash Flow
Date:
Period:
475.00M
Differed Income Tax :
232.00M
Stock Based Compensation :
- 162000.00K
Change in Working Capital :
83.00M
Accounts Receivables:
- 487000.00K
Other Working Capital:
- 43000.00K
Other Non-Cash Items:
33.00M
Net Cash Provided by Operating Activities:
- 102000.00K
Investments in PP&E:
39.00M
Net Acquisitions:
- 55000.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
4/1/2022
2022
Q1
402.00M
-
402.00M
4.45B
1.09B
307.00M
6.25B
2.85B
18.19B
6.49B
-
91.00M
571.00M
28.20B
-
34.44B
1.72B
265.00M
187.00M
1.28B
1.47B
4.74B
7.57B
1.58B
10.34B
-
15.08B
193.00M
3.13B
- 150000.0K
Value
3.19B
16.09B
19.26B
34.34B
-
7.84B
-
-
- 9000.00K
- 64000.00K
- 5000.00K
-
- 308000.00K
- 218000.00K
18.00M
- 513000.00K
- 1000.00K
- 539000.00K
402.00M
941.00M
39.00M
- 55000.00K
Our Proprietary Portfolio Rating
Our Rating:
-91.26868955
Price Forecast/Expected Price in Next 5 Years of
Aerospace & Defense
2023
2024
2025
2026
2027
281.5423067
$281.54
$294.52
$308.10
$322.31