Leonardo Spa (LDO) AI Stock Analysis

• Market Cap: €26.82B
• Dividend Yield: 0.93%
• Average Volume (3M): 3.61M
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.76
• Revenue Growth: 16.17%
• EPS Growth: 63.09%
• Country: IT
• Employees: 60,288
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): 0.66
• Shares Outstanding: 578,150,400
• 10 Day Avg. Volume: 3,413,537
• 30 Day Avg. Volume: 3,612,778
• PEG Ratio: 0.09
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.87
• 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: €53.10
• Price Target Upside: 13.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: €53.00 ▲(13.66%Upside)

Leonardo Spa's overall stock score is primarily driven by its strong financial performance, which demonstrates robust growth and effective management. However, the stock's high P/E ratio and low dividend yield weigh down the score, indicating potential overvaluation. Technical analysis suggests a neutral trend with no significant momentum indicators.

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 the sale of its high-tech products and services across its core sectors: aerospace, defense, and security. The company earns money by providing complete systems, components, and solutions to government and commercial customers. Key revenue streams include the sale of military and commercial aircraft, helicopters, and defense electronics. Additionally, Leonardo offers maintenance, repair, and overhaul services, which contribute to recurring revenue. Strategic partnerships and collaborations with other global defense and aerospace companies also play a significant role in enhancing its market reach and capabilities, thereby contributing to its earnings.

Leonardo Spa Financial Statement Overview

Summary

Leonardo Spa demonstrates strong financial performance with significant revenue and profit growth, stable margins, and effective cash flow management. The balance sheet is well-managed, showing a balanced leverage and solid equity base. The absence of 2024 EBIT margin slightly limits operational efficiency analysis.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.76B	15.29B	14.71B	14.13B	13.41B
Gross Profit	1.45B	1.65B	1.22B	1.05B	1.03B
EBITDA	2.25B	1.54B	1.66B	1.29B	974.00M
Net Income	1.07B	658.00M	927.00M	586.00M	241.00M
Balance Sheet
Total Assets	33.67B	30.69B	28.58B	28.38B	27.07B
Cash, Cash Equivalents and Short-Term Investments	2.56B	2.41B	1.51B	2.48B	2.21B
Total Debt	4.70B	4.93B	4.61B	5.67B	5.70B
Total Liabilities	23.47B	22.13B	20.53B	21.54B	21.44B
Stockholders Equity	8.99B	7.80B	7.18B	6.43B	5.27B
Cash Flow
Free Cash Flow	646.00M	404.00M	523.00M	190.00M	-36.00M
Operating Cash Flow	1.54B	1.19B	1.28B	805.00M	275.00M
Investing Cash Flow	-753.00M	-262.00M	-924.00M	-604.00M	-438.00M
Financing Cash Flow	-678.00M	-12.00M	-1.40B	30.00M	460.00M

Leonardo Spa Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.63
• 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 Neutral. The current price of 46.63 is below the 20-day moving average (MA) of 48.86, below the 50-day MA of 48.24, and above the 200-day MA of 34.18, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 43.85 is Neutral, neither overbought nor oversold. The STOCH value of 52.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:LDO.

Leonardo Spa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LDO	69 Neutral	€26.82B	25.00	12.77%	0.93%	16.17%	63.09%
Sector *	62 Neutral	C$6.43B	7.67	3.30%	3.15%	6.91%	-13.05%
0R9S		€608.69M	92.15	2.02%	0.55%	―	―
0QWN		€4.64B	―		―	―	―
0NUX		€17.52B	24.99	15.32%	1.19%	―	―
0BJP		€3.46B	17.51	11.69%	2.03%	―	―
IVG	68 Neutral	€5.65B	11.84		1.80%	-7.61%	62.12%