LHX L3Harris
$245.04
▲ 1.9%Updated Oct 16, 2:25 PM ET
Report Card
LHX at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Weak · 38/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 18.5% in the year to Jul 6, 2026
Key Metrics
Market Cap
$56.27B
P/E
25.82x
Forward P/E (est.)
23.62x
ROE
8.9%
Revenue Growth
-20.8%
EPS Growth
9.3%
Profit Margin
7.5%
FCF Yield
4.3%
Debt / Equity
0.57x
ROIC
6.0%
Interest Coverage
7.81x
Current Ratio
1.18x
Dividend Yield
1.6%
Implied Growth (rev. DCF)
4.0%
Rating Score
38/100
Business Overview
L3Harris (LHX) is a large-cap company in the Aerospace & Defense industry, part of the Industrials sector of the S&P 500, with a market value around $56.27B.
Our model rates LHX Weak (38/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (8 years of history).
Profit margins and economic moats, explainedThe numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
7.6% average over the last 3 years
±5.5 pts around 13.2% across 7 years
grew in 6 of the last 7 year-over-year periods
positive in 9 of 9 years
6.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what LHX's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. LHX trades near $245.04, below its 50-day average ($306.74) and 200-day average ($316.43). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 43 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. LHX's is $9.40 (~3.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, LHX found buyers near $282.41 (support) and sellers near $318.52 (resistance); its 52-week range then was $249.11–$379.23. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
Profitability
Gross Margin
24.9%
Operating Margin
9.6%
Net Margin
7.5%
ROE
8.9%
L3Harris keeps about 7.5% of each sales dollar as net profit, with a 24.9% gross margin and 9.6% operating margin. Return on equity is 8.9% and return on invested capital about 6.0%. Margins are moderate — typical of a competitive but profitable business.
Debt Analysis
Total Debt
$6.96B
Net Debt
$5.44B
Net Debt / EBITDA
2.58x
Debt / Equity
0.57x
Leverage: debt-to-equity is 0.6x, and operating profit covers interest about 7.8x, with a current ratio of 1.2x. That is a moderate, manageable debt load for most businesses. It carries roughly $6.96B of total debt against $1.52B of cash.
Cash Flow Analysis
Operating CF
$3.11B
Free Cash Flow
$2.68B
FCF Margin
—
In the latest year L3Harris produced about $3.11B of operating cash flow and $2.68B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.3% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockThe payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
1.6%
Per share (latest FY)
$4.80
Total paid (latest FY)
$903.00M
History on record
9 years
dividend uses 34% of free cash flow
56% of net income paid out
total dividends increased 8 years in a row
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
25.82x
P/S
2.59x
P/B
2.29x
EV / EBITDA
—
LHX trades at 25.8x trailing earnings (about 23.6x on estimated forward earnings), 2.6x sales, and 2.3x book value. Reverse-engineering today's price implies the market expects roughly 4.0% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
$147.80
Current price
$245.04
Starting FCF (latest 10-K)
$2.68B
Growth, years 1–5
-5.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where LHX sits versus the Industrials companies we cover.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How LHX stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
Among the 142 rated Industrials companies we cover, LHX ranks #120 by our overall rating. It trades at a discount versus the sector on earnings (25.8x P/E vs. 30.5x median) with a lower return on equity (8.9% vs. 18.1%) and slower revenue growth (-20.8% vs. 6.0%).
P/E vs sector
25.8x
median 30.5x
ROE vs sector
8.9%
median 18.1%
Growth vs sector
-20.8%
median 6.0%
Sector rank
#120
of 142 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 142 rated companies among the 273 Industrials stocks we cover. Educational, not a recommendation.
Bull Case
The case for LHX:
- Healthy free-cash-flow yield (~4.3%) funds buybacks and dividends.
- As an established S&P 500 member in Industrials, it brings scale and a long operating history.
Bear Case
The case against LHX:
- Revenue growth is slow/negative (-20.8%), limiting the upside engine.
- Our model's overall read is Weak (38/100).
Key Risks
Growth risk — sluggish revenue (-20.8%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen weakly: L3Harris is a large-cap industrials business with shrinking revenue, with modest profitability, and a sound balance sheet. It trades at 25.8x earnings, which our model scores Weak (38/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Latest SEC Filings
LHX's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
LHX — frequently asked questions
Is LHX a good stock to buy?
We don't give buy or sell advice. Our model rates L3Harris Weak (38/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is LHX's rating on The Stocks School?
L3Harris currently scores 38/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does LHX's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from L3Harris's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for LHX calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this LHX analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell LHX. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.