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Leonardo

BATS-CHIXE:LDOM
Snowflake Description

Very undervalued with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LDOM
BATS-CHIXE
€4B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Leonardo S.p.a. engages in the helicopters, defense electronics and security systems, aeronautics, space, and other businesses in Italy, the United Kingdom, rest of Europe, North America, and internationally. The last earnings update was 26 days ago. More info.


Add to Portfolio Compare Print
  • Leonardo has significant price volatility in the past 3 months.
LDOM Share Price and Events
7 Day Returns
16.2%
BATS-CHIXE:LDOM
0.6%
GB Aerospace & Defense
0.1%
GB Market
1 Year Returns
-31.8%
BATS-CHIXE:LDOM
-0.8%
GB Aerospace & Defense
-23.6%
GB Market
LDOM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Leonardo (LDOM) 16.2% -17.1% -38.1% -31.8% -46.8% -39.9%
GB Aerospace & Defense 0.6% -15.8% -19.2% -0.8% -15.2% -21.8%
GB Market 0.1% -15.5% -27% -23.6% -24.3% -23.5%
1 Year Return vs Industry and Market
  • LDOM underperformed the Aerospace & Defense industry which returned -0.8% over the past year.
  • LDOM underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -23.6% over the past year.
Price Volatility
LDOM
Industry
5yr Volatility vs Market

Value

 Is Leonardo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Leonardo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Leonardo.

BATS-CHIXE:LDOM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BATS-CHIXE:LDOM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 8.2%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.846 (1 + (1- 24%) (125.56%))
1.438
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.44
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.438 * 8.23%)
12.36%

Discounted Cash Flow Calculation for BATS-CHIXE:LDOM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Leonardo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BATS-CHIXE:LDOM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 12.36%)
2020 395.32 Analyst x5 351.83
2021 549.64 Analyst x5 435.36
2022 800.67 Analyst x3 564.43
2023 993.77 Est @ 24.12% 623.49
2024 1,163.12 Est @ 17.04% 649.46
2025 1,303.72 Est @ 12.09% 647.88
2026 1,416.10 Est @ 8.62% 626.32
2027 1,503.81 Est @ 6.19% 591.94
2028 1,571.40 Est @ 4.49% 550.50
2029 1,623.33 Est @ 3.31% 506.13
Present value of next 10 years cash flows €5,547.00
BATS-CHIXE:LDOM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €1,623.33 × (1 + 0.53%) ÷ (12.36% – 0.53%)
€13,794.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €13,794.07 ÷ (1 + 12.36%)10
€4,300.79
BATS-CHIXE:LDOM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €5,547.00 + €4,300.79
€9,847.79
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €9,847.79 / 575.01
€17.13
BATS-CHIXE:LDOM Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:LDOM represents 1.00833x of BIT:LDO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00833x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 17.13 x 1.00833
€17.27
Value per share (EUR) From above. €17.27
Current discount Discount to share price of €7.02
= -1 x (€7.02 - €17.27) / €17.27
59.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Leonardo is available for.
Intrinsic value
>50%
Share price is €7.02 vs Future cash flow value of €17.27
Current Discount Checks
For Leonardo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Leonardo's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Leonardo's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Leonardo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Leonardo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BATS-CHIXE:LDOM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in EUR €1.25
BIT:LDO Share Price ** BIT (2020-04-07) in EUR €6.96
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PE Ratio Median Figure of 9 Publicly-Listed Aerospace & Defense Companies 17.96x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Leonardo.

BATS-CHIXE:LDOM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:LDO Share Price ÷ EPS (both in EUR)

= 6.96 ÷ 1.25

5.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Leonardo is good value based on earnings compared to the GB Aerospace & Defense industry average.
  • Leonardo is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Leonardo's expected growth come at a high price?
Raw Data
BATS-CHIXE:LDOM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
7.1%per year
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PEG Ratio Median Figure of 8 Publicly-Listed Aerospace & Defense Companies 2.01x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 517 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

BATS-CHIXE:LDOM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.55x ÷ 7.1%

0.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Leonardo is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Leonardo's assets?
Raw Data
BATS-CHIXE:LDOM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in EUR €9.26
BIT:LDO Share Price * BIT (2020-04-07) in EUR €6.96
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PB Ratio Median Figure of 13 Publicly-Listed Aerospace & Defense Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.11x
BATS-CHIXE:LDOM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:LDO Share Price ÷ Book Value per Share (both in EUR)

= 6.96 ÷ 9.26

0.75x

* Primary Listing of Leonardo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Leonardo is good value based on assets compared to the GB Aerospace & Defense industry average.
X
Value checks
We assess Leonardo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Leonardo has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Leonardo expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Leonardo expected to grow at an attractive rate?
  • Leonardo's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Leonardo's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Leonardo's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:LDOM Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:LDOM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 7.1%
BATS-CHIXE:LDOM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 3.5%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BATS-CHIXE:LDOM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BATS-CHIXE:LDOM Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 16,911 1,106 1
2022-12-31 15,167 1,611 852 7
2021-12-31 14,552 1,209 735 11
2020-12-31 13,907 1,032 613 14
2020-04-07
BATS-CHIXE:LDOM Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-12-31 13,784 639 721
2019-09-30 13,134 354 624
2019-06-30 12,613 504 566
2019-03-31 12,514 625 447
2018-12-31 12,240 687 420
2018-09-30 11,926 1,035 176
2018-06-30 11,827 499 170
2018-03-31 11,824 154 278
2017-12-31 11,734 722 277
2017-09-30 12,016 -2 427
2017-06-30 12,085 1,082 508
2017-03-31 11,827 1,312 498

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Leonardo's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
  • Leonardo's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BATS-CHIXE:LDOM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Leonardo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:LDOM Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.92 1.92 1.92 1.00
2022-12-31 1.50 1.70 1.24 3.00
2021-12-31 1.31 1.52 1.05 6.00
2020-12-31 1.08 1.29 0.66 8.00
2020-04-07
BATS-CHIXE:LDOM Past Financials Data
Date (Data in EUR Millions) EPS *
2019-12-31 1.25
2019-09-30
2019-06-30 0.98
2019-03-31 0.78
2018-12-31 0.73
2018-09-30 0.31
2018-06-30 0.30
2018-03-31 0.48
2017-12-31 0.48
2017-09-30 0.74
2017-06-30 0.89
2017-03-31 0.87

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Leonardo is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Leonardo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Leonardo has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Leonardo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Leonardo's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Leonardo has delivered over 20% year on year earnings growth in the past 5 years.
  • Leonardo's 1-year earnings growth exceeds its 5-year average (71.7% vs 28.9%)
  • Leonardo's earnings growth has exceeded the GB Aerospace & Defense industry average in the past year (71.7% vs 12.4%).
Earnings and Revenue History
Leonardo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Leonardo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:LDOM Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 13,784.00 721.00 3,450.00
2019-09-30 13,134.00 624.00 3,377.00
2019-06-30 12,613.00 566.00 3,315.00
2019-03-31 12,514.00 447.00 3,377.00
2018-12-31 12,240.00 420.00 3,377.00
2018-09-30 11,926.00 176.00 3,115.00
2018-06-30 11,827.00 170.00 3,298.00
2018-03-31 11,824.00 278.00 3,115.00
2017-12-31 11,734.00 277.00 3,115.00
2017-09-30 12,016.00 427.00 3,163.00
2017-06-30 12,085.00 508.00 3,148.00
2017-03-31 11,827.00 498.00 3,163.00
2016-12-31 12,002.00 505.00 3,163.00
2016-09-30 12,028.00 449.00 3,225.00
2016-06-30 12,435.00 373.00 3,145.00
2016-03-31 12,877.00 291.00 3,225.00
2015-12-31 12,995.00 229.00 3,225.00
2015-09-30 13,161.00 123.00 615.00
2015-06-30 13,028.00 64.00 3,043.00
2015-03-31 12,870.00 -68.00 2,176.00
2014-12-31 12,764.00 -86.00 3,003.00
2014-09-30 12,678.00 -517.00 3,360.00
2014-06-30 12,881.00 -601.00 3,474.00
2014-03-31 13,251.00 -624.00 3,627.00
2013-12-31 13,802.00 -604.00 3,752.00
2013-09-30 14,766.00 -1,149.00 3,906.00
2013-06-30 15,638.00 -1,005.00 3,049.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Leonardo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Leonardo used its assets less efficiently than the GB Aerospace & Defense industry average last year based on Return on Assets.
  • Leonardo has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Leonardo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Leonardo has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Leonardo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Leonardo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Leonardo's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Leonardo's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Leonardo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Leonardo Company Filings, last reported 3 months ago.

BATS-CHIXE:LDOM Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 5,334.00 4,574.00 1,962.00
2019-09-30 4,947.00 5,543.00 1,024.00
2019-06-30 4,717.00 5,435.00 1,179.00
2019-03-31 4,709.00 5,215.00 1,011.00
2018-12-31 4,510.00 4,611.00 2,054.00
2018-09-30 4,354.00 4,722.00 1,007.00
2018-06-30 4,197.00 4,646.00 976.00
2018-03-31 4,180.00 4,600.00 825.00
2017-12-31 4,213.00 4,685.00 1,902.00
2017-09-30 4,460.00 5,780.00 1,574.00
2017-06-30 4,428.00 5,733.00 1,985.00
2017-03-31 4,452.00 5,265.00 1,891.00
2016-12-31 4,373.00 5,282.00 2,316.00
2016-09-30 4,062.00 5,259.00 1,040.00
2016-06-30 4,216.00 5,339.00 811.00
2016-03-31 4,182.00 5,369.00 884.00
2015-12-31 4,302.00 5,309.00 1,775.00
2015-09-30 4,241.00 6,155.00 401.00
2015-06-30 4,218.00 6,033.00 611.00
2015-03-31 4,003.00 6,020.00 417.00
2014-12-31 3,854.00 5,776.00 1,500.00
2014-09-30 3,792.00 6,348.00 630.00
2014-06-30 3,680.00 5,750.00 651.00
2014-03-31 3,656.00 5,939.00 633.00
2013-12-31 3,679.00 5,586.00 1,466.00
2013-09-30 3,433.00 6,634.00 992.00
2013-06-30 3,574.00 6,683.00 1,242.00
  • Leonardo's level of debt (85.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (149.5% vs 85.8% today).
  • Debt is not well covered by operating cash flow (14%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).
X
Financial health checks
We assess Leonardo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Leonardo has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Leonardo's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.01%
Current annual income from Leonardo dividends. Estimated to be 2.81% next year.
If you bought €2,000 of Leonardo shares you are expected to receive €40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Leonardo's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.59%).
  • Leonardo's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.08%).
Upcoming dividend payment

Purchase Leonardo before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BATS-CHIXE:LDOM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 3.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 588 Stocks 5.6%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.6%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BATS-CHIXE:LDOM Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.43 1.00
2022-12-31 0.22 6.00
2021-12-31 0.21 12.00
2020-12-31 0.15 13.00
2020-04-07
BATS-CHIXE:LDOM Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2020-03-12 0.140 2.487
2019-05-16 0.140 1.318
2018-03-14 0.140 1.513
2017-05-17 0.140 1.131
2013-11-07 0.000 0.000
2013-08-01 0.000 0.000
2013-04-30 0.000 0.000
2013-04-23 0.000 0.000
2012-11-08 0.000 0.000
2012-08-06 0.000 0.000
2012-07-31 0.000 0.000
2012-05-03 0.000 0.000
2011-11-15 0.000 0.000
2011-03-02 0.410 6.297
2010-03-04 0.410 4.535

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Leonardo's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.2x coverage).
X
Income/ dividend checks
We assess Leonardo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Leonardo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Leonardo has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Leonardo's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alessandro Profumo
AGE 62
TENURE AS CEO 2.9 years
CEO Bio

Mr. Alessandro Profumo has been the Chief Executive Officer and Director of Leonardo S.p.a. since May 5, 2017. Mr. Profumo served as President at Equita SIM Spa, Investment Arm. Mr. Profumo served as the Chief Executive Officer at UniCredit Bank Austria AG since January 25, 2006. He served as Chief Executive Officer at UniCredit Romania SA and UniCredit Banca SpA. He served as the Chief Executive Officer at CJSC UniCredit Bank until September 2010. He served as the Chief Executive Officer at UniCredit S.p.A. from 1998 to September 21, 2010 and its Managing Director from April 29, 1997 to September 21, 2010. He served as the Chief Executive Officer at KOC Holding AS. Mr. Profumo served as the Chief Executive Officer at UniCredit Tiriac Bank S.A. He worked at Banco Lariano in its branches and Headquarters in both the commercial and executive areas from 1977 to 1987. He served as Head of Corporate and Investment Banking of UniCredit S.p.A. Mr. Profumo served as Head Of Strategic and Organizational Projects for financial companies of McKinsey & Co. from joining it in 1987 to 1989. In 1989, he joined Bain Cuneo & Association, where he was in charge of relations with financial institutions and integrated organization and development projects until 1991. In 1991, he joined RAS - Riunione Adriatica di Sicurtà as its General Manager in charge of the banking and parabanking sectors. In 1994, he joined Credito Italiano as Deputy General Manager in charge of Planning and Group Control, Co-General Manager, later becoming Chief General Manager, in 1995 and Chief Executive Officer, on April 29, 1997, a position he continued to hold following the merger with Unicredit until he left the Group in September 2010. Mr. Profumo was the Chairman and Director of Equita SIM S.p.A. since September 2015. He serves as the Chairman of Appeal Strategy & Finance. Mr. Profumo serves as the Chairman of UniCredit Banca Mobiliare and Chairman of Supervisory Board at Bank Austria Wohnbau Gewinnscheine. He serves as Deputy Chairman of UniCredit Xelion Banca and Franz RAUCH. He has been a Director at Vincenzo Calandra Buonaura since May 3, 2007 and Josef REICHL since October 25, 2007. He serves as a Director of Sergio ERMOTTI, Paolo Fiorentino, Dario Frigerio, Roberto Nicas-Tro, Vittorio Ogliengo, Karl Samstag, Gerhard Scharitzer, Wolf-gang SPRISSLER, Wolfgang HEINZL, Adolf LEHNER, Emmerich PERL,Martina ICHA and Heribert KRUSCHIK. He serves as a Director of UniCredit Banca, Koç Holding, A.S and UniCredit Banca d'Impresa. He has been a Director of the TOG Foundation, since 2011. He has also been a board member of Bocconi University business school since 2006. He served as an Independent Non-Executive Director of Eni SpA since July 29, 2015 until April 18, 2017 and served as its Director since May 5, 2011. Since 2012, he has been a Member of the Board of the Arnaldo Pomodoro Foundation and Teatro alla Scala Foundation. He serves as a Member of the International Advisory Board of di Itau-UniBanco. Mr. Profumo serves as a member of the International Advisory Board of Itaú Unibanco Holding S.A. He serves as a Director of Luigi Bocconi University. He served as an Independent Member of the Supervisory Board at Sberbank of Russia OJSC since June 3, 2011. He served as the Chairman of Supervisory Board of UniCredit Bank Austria AG from July 13, 2006 to January 21, 2011. He served as the Chairman of Supervisory Board at Bank Polska Kasa Opieki Spólka Akcyjna until January 19, 2005. He served as the Chairman of Supervisory Board of Unicredit Bank AG from December 2, 2005 to February 5, 2009.He served as the Vice Chairman and Member of the Executive Board of ABI - Associazione Bancaria Italiana, the Italian Banking Association. He served as the Chairman of Banca Monte dei Paschi di Siena SpA from April 27, 2012 to August 6, 2015. He served as Director of KOC Holding A.S. He served as an Executive Director of UniCredit S.p.A. from December 16, 2005 to September 21, 2010. He served as Director of UniCredit Private Banking S.p.A. He served as Director of Mediobanca Banca di Credito Finanziario S.p.A. from October 28, 2002 to 2008 and Capitalia S.p.A. since August 2007. Mr. Profumo served as a Director of R.C.S. Quotidiani S.p.A. until July 7, 2004; Barilla G. & R. Brothers, S.p.A., until April 30, 2004; Unicredit Real Estate S.p.A. until 9 June 2004; Cordusio Immobiliare S.p.A until June 9, 2004. He served as a Director of Thomas SCHLAGER until October 8, 2007. He served as a Director of Olimpia S.p.A., RCS Quotidiani. He served as a Member of Supervisory Board of UniCredit Bank Austria AG from January 25, 2006 to January 21, 2011. He served as Member of Supervisory Board for Deutsche Boerse AG from May 19, 2004 to October 17, 2007 and UniCredit Markets & Investment Banking, from November 29, 2005 to February 5, 2009. He has written numerous articles and studies and in 2003, together with Giovanni Moro, wrote a book entitled "Plus Valori". In 2004, he was made a Cavaliere al Merito del Lavoro of the Republic of Italy. Mr. Profumo holds Degree in Business Economics and Business Administration from the "Luigi Bocconi Business University".

CEO Compensation
  • Insufficient data for Alessandro to compare compensation growth.
  • Insufficient data for Alessandro to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Leonardo management team in years:

1.3
Average Tenure
  • The average tenure for the Leonardo management team is less than 2 years, this suggests a new team.
Management Team

Alessandro Profumo

TITLE
CEO & Director
AGE
62
TENURE
2.9 yrs

Alessandra Genco

TITLE
Chief Financial Officer

Roberto Cingolani

TITLE
Chief Technology & Innovation Officer
TENURE
1.3 yrs

Valeria Ricciotti

TITLE
Head of Investor Relations & Credit Rating Agencies

Andrea Parrella

TITLE
Group General Counsel of Legal

Gianbattista Vittorioso

TITLE
Communication Director
TENURE
0.4 yrs

Giuseppe Maresca

TITLE
Senior Vice President of Marketing & Commercial Affairs

Simonetta Iarlori

TITLE
Chief of People

Giovanni Soccodato

TITLE
Chief Strategic Equity Officer
AGE
58

Francesco Mantovani

TITLE
Senior Vice President of HR Development and Education
Board of Directors Tenure

Average tenure and age of the Leonardo board of directors in years:

5.9
Average Tenure
63
Average Age
  • The tenure for the Leonardo board of directors is about average.
Board of Directors

Gianni De Gennaro

TITLE
Chairman
COMPENSATION
€243K
AGE
71
TENURE
6.8 yrs

Alessandro Profumo

TITLE
CEO & Director
AGE
62
TENURE
2.9 yrs

Paolo Cantarella

TITLE
Lead Independent Director
COMPENSATION
€102K
AGE
75
TENURE
5.9 yrs

Dario Frigerio

TITLE
Independent Director
COMPENSATION
€106K
AGE
57
TENURE
6.8 yrs

Guido Alpa

TITLE
Independent Director
COMPENSATION
€108K
AGE
72
TENURE
5.9 yrs

Luca Rossi

TITLE
Chairman of Statutory Auditors
AGE
52
TENURE
1.4 yrs

Silvia Merlo

TITLE
Independent Director
COMPENSATION
€107K
AGE
51
TENURE
8.9 yrs

Marina Calderone

TITLE
Independent Director
COMPENSATION
€95K
AGE
54
TENURE
5.9 yrs

Marta Dassù

TITLE
Independent Director
COMPENSATION
€102K
AGE
64
TENURE
5.9 yrs

Fabrizio Landi

TITLE
Independent Director
COMPENSATION
€103K
AGE
66
TENURE
5.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Leonardo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Leonardo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Leonardo S.p.a. engages in the helicopters, defense electronics and security systems, aeronautics, space, and other businesses in Italy, the United Kingdom, rest of Europe, North America, and internationally. The company researches, designs, develops, produces, supports, and markets a range of helicopters for commercial, public service, and security and defense applications. It also offers multi-mission, tactical transport, combat, and trainer aircraft; airborne solutions, such as components and ISR/ISTAR, airborne sensors, and effectors in the electromagnetic spectrum; unmanned aerial systems; and aero structures. In addition, the company offers C4I solutions for the digital battlefield; air defense solutions; air traffic control and management; vehicle systems; land weapon systems; soldier systems; force protection and border control products; radars; communication products; optronics; electronic warfares; and unmanned systems for land operations. Further, it provides command and control, maritime domain awareness, and weapon systems for sea; and cyber and digital solutions, professional communications, operation and control products, and handling systems. Additionally, the company offers services and infrastructures, payloads, equipment, and programs for space, as well as services and trainings. The company was formerly known as Leonardo – Finmeccanica S.p.a. and changed its name to Leonardo S.p.a. in January 2017. Leonardo S.p.a. was founded in 1948 and is headquartered in Rome, Italy.

Details
Name: Leonardo S.p.a.
LDOM
Exchange: BATS-CHIXE
Founded: 1948
€4,002,054,970
575,007,898
Website: http://www.leonardocompany.com/en/home
Address: Leonardo S.p.a.
Piazza Monte Grappa n. 4,
Rome,
Rome, 00195,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT LDO Ordinary Shares Borsa Italiana IT EUR 02. Jan 1992
OTCPK FINM.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB FMNB Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0ONG Ordinary Shares London Stock Exchange GB EUR 02. Jan 1992
WBAG LDO Ordinary Shares Wiener Boerse AG AT EUR 02. Jan 1992
BATS-CHIXE LDOM Ordinary Shares BATS 'Chi-X Europe' GB EUR 02. Jan 1992
OTCPK FINM.Y UNSPONSORED ADR Pink Sheets LLC US USD 24. Oct 2008
Number of employees
Current staff
Staff numbers
49,530
Leonardo employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 20:27
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/03/12
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.