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LHX L3Harris

aerospace · 2026-10-13

N/A
too hard · 50
Owner-earnings value$298.84
Price$238.25
Margin of safety +25.4%

Quality gate · 50/100

Returns on capital 0/30
Consistency 20.2/22
Margins / pricing power 7.5/16
Balance sheet 7.2/16
Cash conversion 10/10
Capital allocation 5.2/6

⚠ sub-hurdle returns (median roic 5% < 9%)

Median ROIC5.5%
Gross margin25.5%
Net debt / EBITDA2.5x
FCF conversion155%
Share count / yr-0.7%
Profitable years4/4

Moat & management

Owner-earnings inputs

Owner earnings (TTM)2.57B
Owner-earnings yield5.8%
Free-cash-flow yield6.3%
Growth used (normalized)8.6%
Market-implied growth (reverse DCF)3.2%
Terminal growth3.0%
Discount rate (hurdle)9.0%

Projected owner earnings

YrOwner earningsGrowthPV
12.79B 8.6%2.56B
23.01B 8.0%2.53B
33.23B 7.4%2.50B
43.45B 6.7%2.44B
53.66B 6.1%2.38B
63.86B 5.5%2.30B
74.05B 4.9%2.22B
84.22B 4.2%2.12B
94.38B 3.6%2.01B
104.51B 3.0%1.90B

⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~3%/yr owner-earnings growth over 10y (reverse DCF); model credits 9%.

History

DateQualityPriceValueMoSRating
2026-10-13 50 $238.25 $298.84 +25.4% N/A
2026-09-24 50 $239.21 $298.84 +24.9% N/A
2026-09-07 50 $256.45 $298.84 +16.5% N/A
2026-08-19 50 $279.54 $298.84 +6.9% N/A
2026-07-31 49 $271.90 $287.88 +5.9% N/A
2026-07-14 49 $288.69 $287.88 -0.3% N/A
2026-07-02 49 $292.23 $287.88 -1.5% N/A
2026-06-25 49 $287.27 $287.88 +0.2% N/A
2026-06-23 49 $293.77 $287.88 -2.0% N/A