L3Harris Technologies (LHX) AI Stock Analysis

• Market Cap: $51.65B
• Dividend Yield: 1.74%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.49
• Revenue Growth: 2.83%
• EPS Growth: 47.00%
• Country: US
• Employees: 47,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 2.70
• Shares Outstanding: 187,052,840
• 10 Day Avg. Volume: 1,346,432
• 30 Day Avg. Volume: 1,219,886
• PEG Ratio: 1.19
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 18.51
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 13.41
• Enterprise Value/Ebitda: 17.33
• 1Y Price Target: $332.83
• Price Target Upside: 20.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 10.79
• Revenue Forecast (FY): $21.97B

• Rating: 70 Neutral
• Price Target: $317.00 ▲(14.80% Upside)

L3Harris Technologies' overall stock score is driven by strong financial performance and positive earnings call highlights, including increased revenue guidance and robust demand in key segments. However, the stock's valuation appears high, and technical indicators suggest a neutral market sentiment. Challenges such as government shutdown impacts and cash flow concerns slightly temper the outlook.

Positive Factors

Revenue Growth

Sustained double-digit organic growth across all segments indicates robust demand and effective execution, enhancing long-term revenue potential.

Increased Revenue Guidance

Raising revenue guidance reflects confidence in future business prospects and market demand, supporting a positive outlook for sustained growth.

Strong Aerojet Rocketdyne Performance

Consistent strong performance in Aerojet Rocketdyne underscores L3Harris's competitive edge in missile and space systems, bolstering its market position.

Negative Factors

Government Shutdown Impact

Government shutdowns can disrupt cash flow and delay project awards, affecting operational stability and planning in the defense sector.

Declining Free Cash Flow Growth

A decline in free cash flow growth may limit the company's ability to reinvest in growth opportunities and manage debt, impacting long-term financial health.

Temporary Delays in Customer Payments

Delays in customer payments can strain cash flow management, potentially affecting the company's ability to meet short-term financial obligations.

L3Harris Technologies Business Overview & Revenue Model

Company Description

L3Harris Technologies (LHX) is a global aerospace and defense technology innovator, formed from the merger of L3 Technologies and Harris Corporation in 2019. The company operates across various sectors, including communication systems, electronic warfare, geospatial systems, avionics, and surveillance, providing advanced solutions for government, defense, and commercial markets. L3Harris is known for its cutting-edge technologies in secure communications, intelligence, surveillance, and reconnaissance (ISR), and mission-critical systems, which play a vital role in enhancing national security and operational effectiveness.

How the Company Makes Money

L3Harris generates revenue primarily through contracts with government and defense agencies, as well as commercial clients. Its revenue model is largely based on the sale of products, services, and solutions that cater to the aerospace and defense sectors. Key revenue streams include the provision of communication systems, electronic warfare technologies, and advanced avionics. The company also earns income from maintenance, repair, and overhaul (MRO) services, which support its systems throughout their lifecycle. Significant partnerships with the U.S. government and international defense organizations further bolster its revenue, as they often lead to multi-year contracts and long-term engagements. Additionally, L3Harris invests in research and development to innovate and expand its product offerings, thereby enhancing its competitive position and revenue potential.

L3Harris Technologies Financial Statement Overview

Summary

L3Harris Technologies demonstrates solid financial health with strong revenue growth and stable profitability. While leverage is moderate, it remains within a manageable range. Cash flow metrics suggest operational stability, though declining free cash flow growth warrants attention. Overall, the company is well-positioned in the Aerospace & Defense industry, with room for improvement in cash flow management.

Income Statement

L3Harris Technologies shows a strong revenue growth rate of 1.72% TTM, indicating positive momentum. The gross profit margin of 23.13% and net profit margin of 8.09% reflect stable profitability, although slightly below industry leaders. EBIT and EBITDA margins are healthy at 11.50% and 17.20% respectively, showcasing efficient operations.

Balance Sheet

The company's debt-to-equity ratio of 0.61 TTM suggests moderate leverage, which is manageable but higher than some peers. Return on equity at 9.08% indicates decent profitability from shareholders' investments. The equity ratio of 47.61% shows a balanced capital structure, providing a stable financial foundation.

Cash Flow

Free cash flow growth has declined by 12.71% TTM, which could be a concern if it continues. However, the operating cash flow to net income ratio of 0.34 and free cash flow to net income ratio of 0.83 indicate that the company generates sufficient cash to cover its net income, maintaining operational stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.74B	21.32B	19.42B	17.06B	17.81B	18.19B
Gross Profit	5.03B	4.75B	4.43B	4.93B	5.38B	5.34B
EBITDA	3.89B	3.56B	2.93B	2.50B	3.52B	2.64B
Net Income	1.76B	1.50B	1.23B	1.06B	1.85B	1.12B
Balance Sheet
Total Assets	41.01B	42.00B	41.69B	33.52B	34.71B	36.96B
Cash, Cash Equivalents and Short-Term Investments	339.00M	615.00M	560.00M	880.00M	941.00M	1.28B
Total Debt	11.84B	12.98B	13.95B	7.79B	7.83B	7.69B
Total Liabilities	21.48B	22.42B	22.86B	14.90B	15.39B	16.12B
Stockholders Equity	19.53B	19.51B	18.77B	18.52B	19.21B	20.72B
Cash Flow
Free Cash Flow	1.89B	2.15B	1.65B	1.91B	2.35B	2.42B
Operating Cash Flow	2.27B	2.56B	2.10B	2.16B	2.69B	2.79B
Investing Cash Flow	425.00M	-263.00M	-7.02B	-250.00M	1.39B	751.00M
Financing Cash Flow	-2.89B	-2.22B	4.59B	-1.95B	-4.41B	-3.11B

L3Harris Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 276.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LHX, the sentiment is Negative. The current price of 276.14 is below the 20-day moving average (MA) of 287.62, below the 50-day MA of 290.59, and above the 200-day MA of 251.30, indicating a neutral trend. The MACD of -3.53 indicates Positive momentum. The RSI at 37.27 is Neutral, neither overbought nor oversold. The STOCH value of 12.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LHX.

L3Harris Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80 Outperform	$91.85B	22.04	17.78%	1.74%	11.86%	17.39%
NOC	75 Outperform	$81.27B	20.44	26.15%	1.54%	-0.14%	72.35%
RTX	75 Outperform	$232.21B	35.56	10.49%	1.54%	8.79%	39.63%
HII	74 Outperform	$12.33B	21.71	12.39%	1.72%	2.60%	-18.22%
LMT	70 Outperform	$105.09B	25.35	62.78%	2.91%	2.88%	-35.15%
LHX	70 Neutral	$51.65B	29.65	9.13%	1.74%	2.83%	47.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

L3Harris Technologies Corporate Events

L3Harris Technologies Reports Strong Earnings and Growth

The recent earnings call for L3Harris Technologies presented a generally positive sentiment, marked by substantial revenue growth and increased guidance. The company showcased high demand, particularly in its Aerojet Rocketdyne segment and international markets. However, the optimism was slightly tempered by challenges such as the government shutdown and temporary payment delays, which introduced some uncertainty into the otherwise strong outlook.

L3Harris Technologies Reports Strong Q3 2025 Results

L3Harris Technologies, a prominent player in the defense and aerospace sector, specializes in delivering cutting-edge communication, electronic, and space systems, with a focus on innovation and strategic growth.