Leonardo Spa (LDO) AI Stock Analysis

• Market Cap: €29.35B
• Dividend Yield: 1.02%
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.87
• Revenue Growth: 14.13%
• EPS Growth: 5.99%
• Country: IT
• Employees: 60,288
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.33
• Shares Outstanding: 578,150,400
• 10 Day Avg. Volume: 2,674,697
• 30 Day Avg. Volume: 3,046,617
• PEG Ratio: 0.22
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 23.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €55.71
• Price Target Upside: 9.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €55.00 ▲(8.27% Upside)

Leonardo Spa's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue and profit growth, stable margins, and effective cash flow management. However, the technical analysis presents mixed signals, with short-term bearish momentum and neutral indicators. The valuation suggests the stock may be overvalued, which tempers the overall score.

Positive Factors

Negative Factors

Leonardo Spa Business Overview & Revenue Model

Company Description

Leonardo Spa (LDO) is an Italian aerospace, defense, and security company that specializes in providing advanced technology solutions and services. Operating in sectors such as aerospace, defense, and security, Leonardo Spa focuses on manufacturing military and civil aircraft, helicopters, and unmanned systems, as well as offering integrated systems for air, land, and naval defense. The company is also involved in cybersecurity and space activities, positioning itself as a key player in delivering high-tech solutions to both government and commercial clients.

How the Company Makes Money

Leonardo Spa generates revenue through multiple streams, primarily by selling defense and aerospace products and services to government and military clients around the world. Key revenue streams include the production of aircraft, helicopters, and unmanned aerial vehicles (UAVs), along with systems integration and maintenance services. The company also earns income from long-term contracts with national governments and international defense organizations, which often include services such as training and technical support. Significant partnerships with other defense contractors and collaborations on international defense programs further enhance its financial performance, allowing for shared resources and expanded market reach.

Leonardo Spa Financial Statement Overview

Summary

Leonardo Spa's financial performance is strong, with robust revenue and profit growth, stable margins, and effective cash flow management. The balance sheet reflects a well-managed leverage and solid equity base. Despite the absence of EBIT margin for 2024, the overall financial health indicates resilience and positive future prospects.

Income Statement

Leonardo Spa has demonstrated strong revenue growth from 2023 to 2024, increasing by approximately 16.2%. The gross profit margin in 2024 stands at about 11.35%, showing stability over the years. Net profit margin has improved significantly to around 6.05%. However, EBIT margin is not available for 2024, which hampers a complete analysis of operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of approximately 0.52, indicating a balanced leverage position. Return on equity has improved to around 11.95%, reflecting effective equity utilization. The equity ratio is approximately 26.7%, exhibiting a solid capital structure. Overall, the balance sheet shows a stable financial position with manageable debt levels.

Cash Flow

Leonardo Spa has shown a healthy growth in free cash flow from 2023 to 2024, increasing by about 59.9%. The operating cash flow to net income ratio is approximately 1.43, indicating robust cash generation relative to net earnings. The free cash flow to net income ratio of 0.6 demonstrates effective cash flow management, supporting future investments and debt repayments.

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	1.45B	1.65B	1.22B	1.05B	1.03B
EBITDA	1.82B	2.25B	1.54B	1.65B	1.38B	974.00M
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	20.53B	21.54B	21.44B
Stockholders Equity	9.00B	8.99B	7.80B	7.18B	6.43B	5.27B
Cash Flow
Free Cash Flow	887.00M	646.00M	404.00M	523.00M	190.00M	-36.00M
Operating Cash Flow	2.15B	1.54B	1.19B	1.28B	805.00M	275.00M
Investing Cash Flow	-542.00M	-753.00M	-262.00M	-924.00M	-604.00M	-438.00M
Financing Cash Flow	-159.00M	-678.00M	-12.00M	-1.40B	30.00M	460.00M

Leonardo Spa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.80
• 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 IT:LDO, the sentiment is Positive. The current price of 50.8 is above the 20-day moving average (MA) of 50.77, below the 50-day MA of 51.32, and above the 200-day MA of 46.32, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 43.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:LDO.

Leonardo Spa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WBD	73 Outperform	€3.40B	13.58	15.86%	2.46%	21.15%	17.26%
IVG	69 Neutral	€6.36B	15.21	―	1.79%	-7.26%	13.88%
PRY	69 Neutral	€24.95B	22.03	21.00%	0.96%	21.75%	92.91%
LDO	66 Neutral	€29.35B	28.03	12.10%	1.02%	14.13%	5.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FCT	54 Neutral	€7.03B	54.23	14.30%	―	18.44%	―
AVIO	52 Neutral	€1.36B	157.01	1.96%	0.41%	32.64%	-38.77%