(LHX) L3Harris Technologies - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE (USA) | Market Cap: 58.120m USD | Total Return: 28% in 12m
Avg Turnover: 413M
EPS Trend: -67.0%
Qual. Beats: 2
Rev. Trend: 93.8%
Qual. Beats: 1
Warnings
Altman Z'' 1.05 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
L3Harris Technologies, Inc. is a global aerospace and defense contractor providing mission-critical systems across space, air, land, and sea domains. The company operates through three primary segments: Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions. Its portfolio includes satellite payloads, tactical radios, night vision technology, and hypersonic propulsion systems.
As a Tier 1 defense contractor, the company relies heavily on multi-year government contracts, which provide high barriers to entry and steady backlogs. The business model is increasingly focused on high-growth areas such as electronic warfare and missile defense to align with shifting Department of Defense priorities. You may find it useful to examine ValueRay for further data on these industry trends.
Headquartered in Melbourne, Florida, the firm was established through the 2019 merger of Harris Corporation and L3 Technologies. This consolidation reflects a broader sector trend toward vertical integration, allowing the company to compete directly with larger primes for complex systems integration projects.
- Department of Defense budget allocations drive tactical radio and communication systems revenue
- Aerojet Rocketdyne acquisition strengthens positioning in hypersonic propulsion and missile defense markets
- Expansion of satellite payload contracts accelerates growth within the Space and Mission segment
- Supply chain stabilization and labor cost management determine operational margin performance
| Net Income: 1.73b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 0.76 > 1.0 |
| NWC/Revenue: 1.30% < 20% (prev 0.69%; Δ 0.61% < -1%) |
| CFO/TA 0.07 > 3% & CFO 3.05b > Net Income 1.73b |
| Net Debt (11.5b) to EBITDA (3.85b): 2.99 < 3 |
| Current Ratio: 1.03 > 1.5 & < 3 |
| Outstanding Shares: last quarter (188.2m) vs 12m ago -0.46% < -2% |
| Gross Margin: 25.26% > 18% (prev 0.26%; Δ 2.50k% > 0.5%) |
| Asset Turnover: 54.41% > 50% (prev 51.51%; Δ 2.90% > 0%) |
| Interest Coverage Ratio: 4.54 > 6 (EBITDA TTM 3.85b / Interest Expense TTM 583.0m) |
| A: 0.01 (Total Current Assets 8.89b - Total Current Liabilities 8.60b) / Total Assets 41.4b |
| B: 0.11 (Retained Earnings 4.42b / Total Assets 41.4b) |
| C: 0.06 (EBIT TTM 2.65b / Avg Total Assets 41.3b) |
| D: 0.22 (Book Value of Equity 4.71b / Total Liabilities 21.7b) |
| Altman-Z'' = 1.05 = BB |
| DSRI: 0.34 (Receivables 1.91b/5.35b, Revenue 22.5b/21.2b) |
| GMI: 1.03 (GM 25.26% / 26.01%) |
| AQI: 0.96 (AQ_t 0.72 / AQ_t-1 0.75) |
| SGI: 1.06 (Revenue 22.5b / 21.2b) |
| TATA: -0.03 (NI 1.73b - CFO 3.05b) / TA 41.4b) |
| Beneish M = -3.56 (Cap -4..+1) = AAA |
As of May 26, 2026, the stock is trading at USD 311.98 with a total of 944,575 shares traded.
Over the past week, the price has changed by +2.83%,
over one month by -2.65%,
over three months by -8.21% and
over the past year by +28.00%.
L3Harris Technologies has received a consensus analysts rating of 4.32. Therefore, it is recommended to buy LHX.
- StrongBuy: 14
- Buy: 5
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 382 | 22.4% |
P/E Trailing = 33.9109
P/E Forward = 27.1739
P/S = 4.5209
P/B = 2.9533
P/EG = 1.7624
Revenue TTM = 22.5b USD
EBIT TTM = 2.65b USD
EBITDA TTM = 3.85b USD
Long Term Debt = 9.19b USD (from longTermDebt, last quarter)
Short Term Debt = 2.17b USD (from shortTermDebt, last quarter)
Debt = 12.1b USD (corrected: LT Debt 9.19b + ST Debt 2.17b) + Leases 736.0m
Net Debt = 11.5b USD (calculated: Debt 12.1b - CCE 590.0m)
Enterprise Value = 69.6b USD (58.1b + Debt 12.1b - CCE 590.0m)
Interest Coverage Ratio = 4.54 (Ebit TTM 2.65b / Interest Expense TTM 583.0m)
EV/FCF = 26.89x (Enterprise Value 69.6b / FCF TTM 2.59b)
FCF Yield = 3.72% (FCF TTM 2.59b / Enterprise Value 69.6b)
FCF Margin = 11.52% (FCF TTM 2.59b / Revenue TTM 22.5b)
Net Margin = 7.71% (Net Income TTM 1.73b / Revenue TTM 22.5b)
Gross Margin = 25.26% ((Revenue TTM 22.5b - Cost of Revenue TTM 16.8b) / Revenue TTM)
Gross Margin QoQ = 24.41% (prev 25.60%)
Tobins Q-Ratio = 1.68 (Enterprise Value 69.6b / Total Assets 41.4b)
Interest Expense / Debt = 4.82% (Interest Expense 583.0m / Debt 12.1b)
Taxrate = 13.07% (77.0m / 589.0m)
NOPAT = 2.30b (EBIT 2.65b * (1 - 13.07%))
Current Ratio = 1.03 (Total Current Assets 8.89b / Total Current Liabilities 8.60b)
Debt / Equity = 0.61 (Debt 12.1b / totalStockholderEquity, last quarter 19.7b)
Debt / EBITDA = 2.99 (Net Debt 11.5b / EBITDA 3.85b)
Debt / FCF = 4.44 (Net Debt 11.5b / FCF TTM 2.59b)
Total Stockholder Equity = 19.5b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.19% (Net Income 1.73b / Total Assets 41.4b)
RoE = 8.87% (Net Income TTM 1.73b / Total Stockholder Equity 19.5b)
RoCE = 9.21% (EBIT 2.65b / Capital Employed (Equity 19.5b + L.T.Debt 9.19b))
RoIC = 6.69% (NOPAT 2.30b / Invested Capital 34.4b)
WACC = 6.09% (E(58.1b)/V(70.2b) * Re(6.48%) + D(12.1b)/V(70.2b) * Rd(4.82%) * (1-Tc(0.13)))
Discount Rate = 6.48% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -62.86 | Cagr: -0.55%
[DCF] Terminal Value 77.83% ; FCFF base≈2.46b ; Y1≈2.80b ; Y5≈4.04b
[DCF] Fair Price = 265.2 (EV 60.9b - Net Debt 11.5b = Equity 49.4b / Shares 186.3m; r=8.35% [WACC [floored]]; 5y FCF grow 14.10% → 2.50% )
EPS Correlation: -67.01 | EPS CAGR: -5.10% | SUE: 3.88 | # QB: 2
Revenue Correlation: 93.83 | Revenue CAGR: 7.30% | SUE: 3.50 | # QB: 1
EPS current Quarter (2026-06-30): EPS=2.84 | Chg30d=-1.47% | Revisions=-8% | Analysts=10
EPS next Quarter (2026-09-30): EPS=3.03 | Chg30d=-1.58% | Revisions=-38% | Analysts=10
EPS current Year (2026-12-31): EPS=11.70 | Chg30d=+0.14% | Revisions=+38% | GrowthEPS=+9.1% | GrowthRev=+7.7%
EPS next Year (2027-12-31): EPS=13.63 | Chg30d=+0.71% | Revisions=+29% | GrowthEPS=+16.5% | GrowthRev=+7.9%
[Analyst] Revisions Ratio: -38%