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L3Harris Technologies, Inc. LHX

IndustrialsAerospace & DefenseNYSE📅 Scored March 7, 2026
Price at analysis: $352.49
Crucible Score
51.4
C
Quality × Value Composite
KQI — Quality
58.5
C+
Fundamental Quality Index
KVI — Value
42.8
D
Valuation Attractiveness Index
Crucible Verdict — LHX

L3Harris Technologies earns a middling C rating, reflecting the classic defense contractor trade-off between solid quality metrics (KQI 58.5) and compressed valuation multiples (KVI 42.8). LHX trades at a modest 5% discount to fair value despite strong diversification across defense programs and a 92% earnings beat rate. The quality-value gap suggests patient investors may find opportunities as defense spending priorities evolve.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality
59.5
Growth Profile
54.7
Moat Durability⚠
59.5
Management Effectiveness
50.4
Diversification & Resilience
77.0
Market Position
68.0
Weakest dimension: Management Effectiveness (50.4)

◆ KVI Value Dimensions

DCF Margin of Safety
62.4
FCF Yield & Cash Returns
42.0
Relative Valuation
30.4
Growth-Adjusted Value
41.7
Historical Valuation
7.9
Macro Context
42.7

◆ DCF Valuation Scenarios

Bear Case
$278.50
Base Case
$370.12
Bull Case
$485.30
Price at Analysis
$352.49
ScenarioFair ValueRev CAGR (5yr)Terminal MarginWACC
🔴 Bear$278.503.0%9.0%8.1%
🟢 Base$370.124.5%10.5%7.4%
🟢 Bull$485.306.0%12.5%7.1%
Key Assumptions: WACC derived using CAPM with 4.39% risk-free rate, 0.61 beta, and 5.5% ERP yielding ~7.75% cost of equity, blended with after-tax cost of debt (~4.2%) at ~35% debt weighting. Revenue growth anchored to 5-year CAGR of ~5.3% with LHX benefiting from elevated defense spending; operating margins reflect historical range of 6.6%-12.5% with normalization toward 10-12.5%. Tax rate normalized to ~12% reflecting historical effective rates averaging well below statutory due to R&D credits and defense contract benefits.

◆ Financial Snapshot

Profitability

Gross Margin24.1%
Operating Margin9.9%
Net Margin7.3%
ROIC5.4%
ROE12.0%

Balance Sheet

Balance SheetCR: 1.19
Cash ConversionFCF/EPS: 1.67x
Capital IntensityCapex/Rev: 1.9%
Altman Z-Score2.84 (Grey)
Piotroski F-Score9/9 (Strong)

Growth

Revenue CAGR4.7% CAGR
Earnings CAGR9.5% CAGR
Growth ConsistencyCV: 1.97
Segment Breadth4/6 growing (67%)
Quarterly TrendRev↘+2%, Margin∆, Exp↓
Earnings CredibilityConsistent Beater

◆ Revenue Breakdown — FY2025

By Segment

Space and Airborne Systems31.4%
Integrated Mission Systems30.0%
Communication Systems25.7%
Aerojet Rocketdyne Segment12.9%

By Geography

Communication Systems Segment41.6%
Integrated Mission Systems Segment35.4%
Space and Airborne Systems Segment17.4%
Aerojet Rocketdyne Segment5.7%
Total Revenue
$4.8B
Fiscal Year 2025

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$352.25
Analysts Covering (Quarter)4
Avg Target (Last Year)$343.17
Analysts (Year)6

Leadership & Governance

CEOChristopher E. Kubasik · 6 years
CEO Ownership< 1%
Compensation85% performance-based
Insider ActivitySelling
Capital AllocationROIC 5.4% vs WACC 4.5%
Earnings Beat Rate92% (19/22)

◆ Company Profile

L3Harris Technologies, Inc. , an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide.

CEO
Christopher E. Kubasik
Employees
47000
Headquarters
Melbourne, FL, US
IPO Date
December 31, 1981
Exchange
NYSE

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MethodologyAll ScoresCrucible BriefsPerformance@KaladinCI

Analysis conducted March 7, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.

© 2026 Kaladin Capital Intelligence — Conviction Through Scrutiny