LHX L3Harris Technologies Inc

L3Harris Technologies is a global defense technology company providing advanced intelligence, surveillance, communication, and avionics systems for military and government customers. Sector: Industrials.

L3Harris Technologies Inc (LHX) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Examining the company through a capital allocation lens, ROIC is 6.12%, WACC is 7.77%, and the economic spread is -1.65%. On balance, the economic spread is negative, indicating that at current return levels, reinvestment is value-destructive in aggregate. Supporting metrics show ROE at 8.23% and ROA at 4.06%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

Multiple analysis puts the company at trailing P/E of 41.97, forward P/E of 30.71, PEG of 2.76. The spread from trailing to forward multiple is wide enough to suggest earnings momentum is a meaningful part of the current valuation case. Growth-adjusted, the company is priced at a premium — a level that demands consistent execution and limits the potential for multiple expansion from here. The aggregate current ratio of 1.19 reflects tighter near-term liquidity — a factor worth monitoring if macro conditions tighten. The combined valuation and liquidity profile points to a company where current prices embed meaningful growth expectations, and where delivery against those expectations will drive the return outcome.

From gross to free cash flow, gross margin sits at 25.73%, operating margin at 11.36%, and free cash flow margin at 12.27%. At this gross margin level, pricing power is present but not dominant — cost management matters as much as revenue growth. Operating margins are thin enough to warrant attention — businesses at this level are more exposed to cost inflation. The company's FCF margin is modest — adequate for near-term needs but not indicative of exceptional capital efficiency. The margin profile is mixed, with some layers more resilient than others and less room for execution slippage.

Revenue momentum and analyst targets together paint a picture where the estimated 12-month price change of -6.98%, where consensus forward pricing suggests a pullback from current levels, while TTM revenue growth of 2.26% indicating muted but still positive top-line momentum across the company. Reported revenue growth is the operational foundation; the analyst target spread shows what the market is willing to pay above it — and that premium can evaporate quickly if delivery slips. For investors, the central question is whether the operating momentum visible in revenues is durable enough to support the price appreciation implied by consensus targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Multiple risk flags are present across the metrics reviewed. While the picture could improve, the current setup favors careful monitoring over confident positioning.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.