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 6.43%, WACC is 6.93%, and the economic spread is -0.50%. On balance, the economic spread is negative, indicating that at current return levels, reinvestment is value-destructive in aggregate. Supporting metrics show ROE at 8.91% and ROA at 4.30%, 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 33.87, forward P/E of 26.32, PEG of 2.33. Trailing P/E sits modestly above forward P/E, a spread that is consistent with steady earnings progress and limited near-term re-rating potential. On a PEG basis, valuation is in the middle ground — fair for the growth on offer, with the return case resting on earnings delivery rather than re-rating. The aggregate current ratio of 1.03 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 25.26%, operating margin at 11.44%, and free cash flow margin at 11.52%. 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 22.69%, where consensus expectations favor gradual appreciation over the next year, while TTM revenue growth of 11.93% reflecting moderate but reliable revenue progress 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.

The fundamental case holds up across most key dimensions — the combination of positive economic spread, reasonable valuation, and analyst support is constructive.

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.