LHXL3Harris
Is the business good?
The checks split: earnings fully cash-backed (0.9×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LHX?
L3Harris earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 1.9 points above what the capital costs: growth creates value
- Operating margin
- 10%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2027
- Cash conversion
- 0.91×
Cash conversion · 0.76× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.27%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 12% |
| FY2022 | 12% |
| FY2023 | 6.6% |
| FY2024 | 7.3% |
| FY2025 | 9.0% |
| FY2026 | 5.5% |
Details›
- Gross margin12 months to Q2 2027
- 26%
- Operating margin12 months to Q2 2027
- 10%
- Net margin12 months to Q2 2027
- 4.8%
- Free cash flow margin
- 7.2%
- Revenue, trailing twelve months
- $39.1B
- Free cash flow, trailing twelve months
- $2.81B
- Net income, trailing twelve months
- $1.87B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Aerospace & Defense
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