How Does This Defense Supplier Operate?
L3Harris Technologies is an aerospace and defense company that supplies systems, products, and services used across defense and mission-focused end markets. The business is built around delivering complex technology and ongoing support work rather than one-off consumer sales. It operates at large scale, serving customers that typically buy through long programs and contracts. The company’s shares trade on the New York Stock Exchange, with an equity value around USD 59.3 billion.
Are Margins and Cash Flow Holding Steady?
FundamentalsFor the most recent annual period, reported in USD, revenue was USD 21.9 billion, with EBIT of USD 2.1 billion and net income of USD 1.6 billion. Revenue growth versus the prior year was 2.5%, alongside a 9.19% trailing operating margin and a 7.06% trailing net profit margin.
From a balance-sheet angle, cash of USD 1.1 billion sits against total debt of USD 10.4 billion. Cash generation in the period, using the provided proxy (EBIT after tax plus depreciation and amortization minus capital spending, excluding working-capital changes), was USD 2.6 billion, with depreciation and amortization of USD 1.2 billion and capital spending of USD 424 million.
Is The Market Paying A Premium?
DCF / MultiplesAt USD 317.51 per share, the price sits between a weaker outcome around USD 249.49 and a stronger outcome around USD 520.30, with a central estimate of USD 368.45. On headline multiples, the stock also trades at 36.93x trailing earnings and 20.57x EV/EBITDA, alongside a 3.66x price-to-sales ratio.
Steady But Debt Heavy
TakeawayThe valuation case leans on steady cash generation. Debt is meaningful, even with cash on hand. Margins need to hold up for the earnings multiple. If cash conversion slips, the downside can show up quickly. If results stay stable, the current price has some support.