Leonardo SpA (FINMY) AI Stock Analysis

• Market Cap: $34.36B
• Dividend Yield: 1.02%
• Average Volume (3M): 21.64K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.60
• Revenue Growth: 14.75%
• EPS Growth: 6.57%
• Country: US
• Employees: 60,288
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.12
• Shares Outstanding: 1,156,300,800
• 10 Day Avg. Volume: 57,371
• 30 Day Avg. Volume: 21,641
• PEG Ratio: -3.17
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 46.51
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 3.49
• Enterprise Value/Gross Profit: 28.61
• Enterprise Value/Ebitda: 19.62
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $33.00 ▲(12.86% Upside)

Leonardo SpA's strong financial performance and positive earnings call guidance are the primary drivers of the stock's score. The company's strategic initiatives and acquisitions further enhance its growth prospects. However, the high P/E ratio and technical indicators suggest caution, as the stock may be overvalued with limited short-term momentum.

Leonardo SpA Business Overview & Revenue Model

Company Description

Leonardo SpA (FINMY) is a global high-tech company specializing in aerospace, defense, and security sectors. With a strong focus on innovation, the company offers a wide range of products and services, including military and commercial aircraft, helicopters, unmanned systems, cyber security solutions, and advanced electronics. Leonardo operates in various international markets, providing integrated solutions and services to governments, military organizations, and commercial clients.

How the Company Makes Money

Leonardo SpA generates revenue through multiple channels, primarily by delivering defense and aerospace products and services to both governmental and commercial customers. Key revenue streams include the sale of military aircraft, helicopters, and defense systems, as well as maintenance, repair, and overhaul (MRO) services. Additionally, the company benefits from long-term contracts and partnerships with various governments and defense agencies, which provide a stable income source. Strategic collaborations and joint ventures with other defense contractors also enhance its market position and contribute to its earnings, while ongoing investments in research and development help to drive innovation and maintain a competitive edge in the high-tech sector.

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: 29.24
• 50DMA: Positive
• 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 29.24 is below the 20-day moving average (MA) of 30.69, below the 50-day MA of 29.60, and above the 200-day MA of 25.56, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 79.89 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	―	$94.35B	22.73	17.78%	1.67%	11.86%	17.39%
NOC	―	$86.43B	21.74	26.15%	1.47%	-0.14%	72.35%
LHX	―	$54.86B	32.74	8.90%	1.64%	2.93%	43.29%
FINMY	―	$34.36B	30.11	11.69%	1.02%	14.75%	6.57%
LMT	―	$112.32B	27.10	62.78%	2.71%	2.88%	-35.15%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	―	$167.38B	-13.50	―	―	2.41%	-193.57%

Leonardo SpA Corporate Events

Leonardo SpA Reports Robust Growth Amid Challenges

Leonardo SpA’s recent earnings call showcased a positive sentiment, driven by substantial growth in orders and revenues, alongside successful strategic acquisitions. The company reported strong performances in key segments such as Defence Electronics and Helicopters. However, challenges persist in the Aerostructures and ATR joint ventures, compounded by uncertainties regarding tariff impacts.

Leonardo SpA Reports Strong 1H 2025 Financial Results

Leonardo SpA, a prominent player in the aerospace, defense, and security sectors, is renowned for its advanced technological solutions and strategic partnerships. The company operates globally, providing integrated solutions across various domains including air, land, sea, and cyber security.