Leonardo SpA (FINMY) AI Stock Analysis

• Market Cap: $32.06B
• Dividend Yield: 0.61%
• Average Volume (3M): 9.36K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 0.57
• Revenue Growth: 14.75%
• EPS Growth: 6.57%
• Country: US
• Employees: 60,288
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 0.12
• Shares Outstanding: 1,156,300,800
• 10 Day Avg. Volume: 16,739
• 30 Day Avg. Volume: 9,364
• PEG Ratio: 0.44
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 46.51
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 3.49
• Enterprise Value/Gross Profit: 28.61
• Enterprise Value/Ebitda: 19.62
• 1Y Price Target: $30.00
• Price Target Upside: 9.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $30.00 ▲(9.61% Upside)

Leonardo SpA has a strong financial performance, marked by robust revenue growth and improved profitability, which heavily influences the overall score. However, technical indicators suggest a neutral to bearish short-term trend, and the valuation indicates the stock might be overpriced, slightly dampening the overall score.

Leonardo SpA Business Overview & Revenue Model

Company Description

Leonardo S.p.a., an industrial and technological company, engages in the helicopters, defense electronics and security systems, aeronautics, space, and other businesses in Italy, the United Kingdom, rest of Europe, the United States, and internationally. The company offers a range of helicopters for battlefield, combat, maritime, training, executive and private transport, medical and rescue, security, energy, and utility services, as well as provides support and training services. It also provides trainers, fighters, multi-mission transport, and multi-mission surveillance aircraft; command and controls, radars and sensors, optronics, communication systems, electronic warfare, avionics, air traffic management, and defense systems; and cyber security and resilience, critical communications, digitalization, and monitoring. In addition, the company offers geoinformation, satellite communications, ground systems, navigation, and satellite operations; interplanetary probes and orbiting modules; and robotics and drilling, electro-optics, laser transmitters, atomic clocks, photovoltaic panels, power distributors and amplifiers, attitude sensors, and orbital micropropulsion. Further, it engages in the production and assembly of major structural composite and metallic components for commercial and military aircraft, helicopters, and unmanned aircraft, as well as provides automation of airport baggage handling, mail sorting centers, and courier logistics hubs. The company was formerly known as Leonardo – Finmeccanica S.p.a. and changed its name to Leonardo S.p.a. in January 2017. Leonardo S.p.a. was founded in 1948 and is headquartered in Rome, Italy.

How the Company Makes Money

Leonardo SpA generates revenue through a diversified portfolio of products and services in the aerospace, defense, and security sectors. Key revenue streams include the sale of military and civil aircraft, helicopters, and defense electronics systems. The company also earns income from providing maintenance, repair, and overhaul (MRO) services, as well as through long-term contracts with government defense agencies. Additionally, Leonardo benefits from partnerships and collaborations with other industry leaders, enhancing its technological capabilities and expanding its market reach. The company's focus on innovation and R&D further strengthens its competitive position, driving growth and profitability.

Leonardo SpA Financial Statement Overview

Summary

Leonardo SpA exhibits robust financial performance with strong revenue and profit growth, improved profitability margins, and efficient cash flow management. Despite a high debt load, the company has improved its leverage ratios and return on equity. Continued focus on managing debt levels and sustaining cash flow growth will be crucial for maintaining financial stability.

Income Statement

Leonardo SpA has demonstrated strong revenue growth with a 16.15% increase from 2023 to 2024. The gross profit margin improved to 11.35% in 2024, up from 10.79% in 2023. The net profit margin has also increased significantly to 6.05% in 2024 from 4.30% in 2023, indicating enhanced profitability. However, EBIT margin data for 2024 is unavailable for further analysis.

Balance Sheet

The company maintains a sound equity base with an equity ratio of 26.71% in 2024, up from 25.42% in 2023, reflecting stable financial health. The debt-to-equity ratio improved to 0.52 in 2024 from 0.63 in 2023, suggesting reduced leverage. Return on equity increased to 11.95% in 2024 from 8.44% in 2023, indicating better returns to shareholders. However, the overall debt levels remain significant, which could pose risks.

Cash Flow

Leonardo SpA's free cash flow grew by 59.90% year-over-year, signaling strong cash generation capabilities. Operating cash flow to net income ratio is 1.43, indicating efficient conversion of income to cash. Additionally, the free cash flow to net income ratio increased, reflecting improved cash profitability. Nevertheless, fluctuations in capital expenditures could impact future cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.45B	17.76B	15.29B	14.71B	14.13B	13.41B
Gross Profit	1.28B	2.02B	1.65B	1.22B	1.05B	1.03B
EBITDA	1.86B	2.25B	1.54B	1.65B	1.38B	1.22B
Net Income	519.00M	1.07B	658.00M	927.00M	586.00M	241.00M
Balance Sheet
Total Assets	32.70B	33.67B	30.69B	28.58B	28.38B	27.07B
Cash, Cash Equivalents and Short-Term Investments	1.81B	2.56B	2.41B	1.51B	2.48B	2.21B
Total Debt	4.25B	4.70B	4.93B	4.61B	5.67B	5.70B
Total Liabilities	22.57B	23.47B	22.13B	20.88B	21.54B	21.44B
Stockholders Equity	9.00B	8.99B	7.80B	7.18B	6.43B	5.27B
Cash Flow
Free Cash Flow	627.00M	646.00M	404.00M	523.00M	190.00M	-36.00M
Operating Cash Flow	1.90B	1.54B	1.19B	1.28B	805.00M	275.00M
Investing Cash Flow	-197.00M	-753.00M	-262.00M	-924.00M	-604.00M	-438.00M
Financing Cash Flow	-80.00M	-678.00M	-12.00M	-1.40B	30.00M	460.00M

Leonardo SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINMY, the sentiment is Positive. The current price of 27.37 is below the 20-day moving average (MA) of 27.69, below the 50-day MA of 28.13, and above the 200-day MA of 20.83, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 43.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FINMY.

Leonardo SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	76 Outperform	$84.40B	21.00	17.91%	1.86%	11.85%	16.12%
RTX	76 Outperform	$209.25B	34.58	10.13%	1.64%	15.44%	164.00%
FINMY	72 Outperform	$32.06B	27.66	11.69%	0.61%	14.75%	6.57%
NOC	71 Outperform	$84.47B	21.69	26.50%	1.45%	-0.65%	77.20%
Sector *	64 Neutral	$10.60B	16.52	5.71%	2.12%	2.78%	-25.85%
LMT	64 Neutral	$98.29B	23.70	73.06%	3.05%	1.09%	-35.50%
BA	56 Neutral	$170.03B	―	-162.23%	―	2.41%	-193.57%