L3Harris Technologies (LHX) AI Stock Analysis

• Market Cap: $53.13B
• Dividend Yield: 1.65%
• Average Volume (3M): 982.47K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 0.54
• Revenue Growth: 2.93%
• EPS Growth: 43.29%
• Country: US
• Employees: 47,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 2.78
• Shares Outstanding: 187,094,800
• 10 Day Avg. Volume: 907,713
• 30 Day Avg. Volume: 982,471
• 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: 1.09
• Enterprise Value/Revenue: 2.71
• Enterprise Value/Gross Profit: 12.19
• Enterprise Value/Ebitda: 15.33
• 1Y Price Target: $303.60
• Price Target Upside: 6.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $320.00 ▲(12.68% Upside)

L3Harris Technologies receives a strong score driven by robust financial performance and positive earnings call sentiment, highlighting increased guidance and successful strategic initiatives. Technical indicators show bullish momentum, though valuation metrics suggest the stock may be overvalued. Investors should monitor debt levels and potential program challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand in the aerospace and defense sector, supporting long-term business expansion and market presence.

Cost Management

Effective cost management enhances profitability and operational efficiency, providing a competitive edge and financial stability over time.

International Growth

International contracts align with increased NATO defense spending, expanding market reach and diversifying revenue streams for sustained growth.

Negative Factors

High Debt Levels

High debt levels can strain cash flow and limit financial flexibility, potentially impacting long-term stability and investment capacity.

Program Challenges

Challenges in specific programs can affect profitability and operational efficiency, posing risks to achieving financial targets and strategic goals.

Potential Funding Risks

Potential funding cuts in military programs could impact revenue growth and strategic initiatives, affecting long-term financial performance.

L3Harris Technologies Business Overview & Revenue Model

Company Description

L3Harris Technologies (LHX) is a global aerospace and defense technology company that specializes in providing advanced communication and electronic systems for government and commercial customers. Formed from the merger of L3 Technologies and Harris Corporation in 2019, the company operates in several key sectors including communications, electronic warfare, geospatial systems, and avionics. L3Harris offers a wide range of products and services, including secure communication networks, tactical communications, avionics systems, and unmanned systems, all aimed at enhancing mission-critical operations for defense and civil markets.

How the Company Makes Money

L3Harris generates revenue through a diversified business model that includes government contracts, commercial sales, and international sales. The majority of its revenue comes from the U.S. Department of Defense and other government agencies, focusing on defense contracts that encompass technology development, equipment manufacturing, and service provisions. Key revenue streams include sales of communication systems, electronic warfare systems, and avionics, as well as support and maintenance services. Additionally, L3Harris has established significant partnerships with various defense organizations and other technology companies, which enhance its capabilities and expand its market reach. The company's ongoing investment in research and development ensures a steady pipeline of innovative products and solutions that help sustain its competitive position in the aerospace and defense sectors.

L3Harris Technologies Financial Statement Overview

Summary

L3Harris Technologies demonstrates robust financial health with strong profitability metrics and stable growth. The company maintains a solid financial foundation with low leverage and efficient cash flow operations, suitable for sustaining its growth trajectory in the Aerospace & Defense industry.

Income Statement

L3Harris Technologies shows a strong financial performance with a solid gross profit margin of 25.1% and a net profit margin of 7.9% for TTM (Trailing-Twelve-Months). The revenue growth rate from the previous fiscal year to TTM is approximately 9.4%, indicating robust growth. EBIT and EBITDA margins are healthy at 9.9% and 15.8%, respectively, reflecting efficient core operations.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.067 for TTM, indicating low leverage. ROE stands at 8.8%, showcasing moderate profitability for shareholders. The equity ratio is 46.4%, highlighting a balanced capital structure with reasonable reliance on equity financing.

Cash Flow

Cash flow metrics are strong, with a free cash flow growth rate of 5.5% from the previous fiscal year to TTM. The operating cash flow to net income ratio of 1.56 indicates adequate cash generation relative to net earnings. Similarly, the free cash flow to net income ratio is 1.35, suggesting efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.37B	21.32B	19.42B	17.06B	17.81B	18.19B
Gross Profit	4.76B	4.75B	4.43B	4.93B	5.38B	5.34B
EBITDA	3.78B	3.56B	2.93B	2.50B	3.52B	2.64B
Net Income	1.70B	1.50B	1.23B	1.06B	1.85B	1.12B
Balance Sheet
Total Assets	41.24B	42.00B	41.69B	33.52B	34.71B	36.96B
Cash, Cash Equivalents and Short-Term Investments	482.00M	615.00M	560.00M	880.00M	941.00M	1.28B
Total Debt	12.10B	12.98B	13.95B	7.79B	7.83B	7.69B
Total Liabilities	21.96B	22.42B	22.86B	14.90B	15.39B	16.12B
Stockholders Equity	19.28B	19.51B	18.77B	18.52B	19.21B	20.72B
Cash Flow
Free Cash Flow	2.16B	2.15B	1.65B	1.91B	2.35B	2.42B
Operating Cash Flow	2.51B	2.56B	2.10B	2.16B	2.69B	2.79B
Investing Cash Flow	461.00M	-263.00M	-7.02B	-250.00M	1.39B	751.00M
Financing Cash Flow	-3.04B	-2.22B	4.59B	-1.95B	-4.41B	-3.11B

L3Harris Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 284.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LHX, the sentiment is Positive. The current price of 284 is above the 20-day moving average (MA) of 278.35, above the 50-day MA of 273.78, and above the 200-day MA of 233.51, indicating a bullish trend. The MACD of 3.66 indicates Negative momentum. The RSI at 63.44 is Neutral, neither overbought nor oversold. The STOCH value of 76.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LHX.

L3Harris Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	79 Outperform	87.05B	21.70	17.33%	1.80%	11.85%	16.12%
NOC	77 Outperform	83.94B	21.22	25.50%	1.49%	-0.65%	77.20%
RTX	76 Outperform	216.01B	35.27	9.85%	1.62%	15.44%	164.00%
LHX	75 Outperform	$53.13B	31.95	8.90%	1.65%	2.93%	43.29%
LMT	71 Outperform	113.52B	27.40	78.82%	2.71%	1.09%	-35.50%
BA	45 Neutral	162.65B	-13.02	324.22%	―	2.41%	-193.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

L3Harris Technologies Corporate Events

L3Harris Increases Board Members’ Equity Retainer

On July 17, 2025, L3Harris Technologies‘ Board of Directors approved an increase in the annual equity retainer for its board members from $190,000 to $200,000 in director share units, effective January 3, 2026. This adjustment reflects the company’s commitment to competitive compensation and may impact its governance and stakeholder relations.

L3Harris CEO Sets Stock Option Sales Plan

On June 13, 2025, L3Harris Technologies‘ CEO, Christopher E. Kubasik, established a pre-arranged plan for exercising employee stock options and selling shares under Rule 10b5-1. This plan, covering options granted in 2018, will see sales starting in September 2025 and ending by December 11, 2025, with transactions disclosed through SEC filings.