L3Harris is UNDERVALUED at 191.99 per share with modest projections ahead.
L3Harris has Sharpe Ratio of -0.0298, which conveys that the company had -0.0298% of return per unit of risk over the last month. Macroaxis outlook to estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. L3Harris exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to verify L3Harris
mean deviation of 1.93 to check out the risk estimate we provide.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include L3Harris Technologies income statement, its balance sheet, and the statement of cash flows. Potential L3Harris Technologies investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although L3Harris Technologies investors may use each financial statement separately, they are all related. The changes in L3Harris Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on L3Harris Technologies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of L3Harris Technologies
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of L3Harris Technologies performance into the future periods or doing a reasonable stock valuation. The intrinsic value of L3Harris Technologies shares is the value that is considered the true value of the share. If
the intrinsic value of L3Harris is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares L3Harris Technologies. Please read more on our
fundamental analysis page.
How effective is L3Harris Technologies in utilizing its assets?
L3Harris Technologies reports assets on its Balance Sheet. It represents the amount of L3Harris resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, L3Harris Technologies aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Aerospace & Defense space. To get a better handle on how balance sheet or income statements item affect L3Harris volatility, please check the breakdown of all its
fundamentals.
Are L3Harris Technologies Earnings Expected to grow?
The
future earnings power of L3Harris Technologies involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of L3Harris Technologies factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. L3Harris Technologies
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of L3Harris
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of L3Harris Technologies earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. L3Harris Technologies dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. L3Harris one year expected dividend income is about USD3.03 per share.
Dividends Paid is likely to rise to about 1
B in 2024.
Dividend Yield is likely to rise to 0.02 in 2024.
Investing in dividend-paying stocks, such as L3Harris Technologies is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in L3Harris Technologies must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for L3Harris Technologies. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
L3Harris Technologies Gross Profit
L3Harris Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing L3Harris Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show L3Harris Technologies Gross Profit growth over the last 10 years. Please check L3Harris Technologies'
gross profit and other
fundamental indicators for more details.
What is the case for L3Harris Technologies Investors
There are few distinct groups of L3Harris stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of L3Harris is distributed among investors.
Ownership Allocation
L3Harris maintains a total of two hundred fifteen million eight hundred seventy thousand
outstanding shares. The majority of L3Harris
outstanding shares are owned by
institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in L3Harris to benefit from reduced commissions. Therefore, institutional holders are subject to a different set of regulations than regular investors in L3Harris. Please pay attention to any change in the institutional holdings of L3Harris as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company has, if the real value of the entity is less than the current market value, you may not be able to make money on it.
| Retail Investors12.95% | | Institutions86.57% |
| Retail Investors | 12.95 |
| Insiders | 0.48 |
| Institutions | 86.57 |
| 2011 | 2016 | 2019 | 2020 (projected) |
Cost of Revenue | 3.83 B | 4.47 B | 3.85 B | 4.08 B | Consolidated Income | 324 M | 949 M | 543 M | 556.07 M |
Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of L3Harris suggests not a very effective usage of assets in July.
| Assets Non Current7.6 B | Goodwill6 B | |
| Current Assets | 2.45 Billion | 14.88 |
| Assets Non Current | 7.58 Billion | 46.08 |
| Goodwill | 5.99 Billion | 36.4 |
| Tax Assets | 434.42 Million | 2.64 |
L3Harris is expecting lower volatility in August
Jensen Alpha just dropped to -0.15, may suggest upcoming price depreciation. L3Harris exhibits very low volatility with skewness of -0.43 and kurtosis of -0.14. However, we advise investors to further study L3Harris technical indicators to make sure all market info is available and is reliable.
Our Final Take On L3Harris
While many other companies within the aerospace & defense industry are still a little expensive, even after the recent corrections, L3Harris may offer a potential longer-term growth to investors. To summarize, as of the 31st of July 2020, our concluding 30 days buy-sell recommendation on the company is
Hold. We believe L3Harris is
undervalued with
low probability of distress for the next two years.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of L3Harris Technologies. Please refer to our
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