Today’s Stock: L3Harris Technologies, Inc. (LHX)Today’s Stock: L3Harris Technologies, Inc. (LHX)
L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. It operates through three segments: Space & Mission Systems (SMS), Communications & Spectrum Dominance (CSD), and Missile Solutions (MSL). The SMS segment integrates satellite and payload capabilities, including missile warning and defense, with maritime, air special missions, and other global defense and civil government programs.
Its MSL segment unites propulsion, hypersonic, and other advanced missile technologies. The CSD segment provides tactical radios, software, waveforms, satellite terminals, and end-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers; broadband communications; integrated vision solutions, such as helmet-mounted integrated night vision goggles with image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders; and public safety radios and system applications and equipment. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019.
My Thoughts 💭My Thoughts 💭
Ahh yes a war contractor. War is a profitable business and Ansel selecting war stocks make sense. As America re-industrializes war stocks will be critical in keeping America safe and keeping America’s interests protected all over the globe.
At 553.6k sats per share ($66,214), and a 7.5k sat per share yearly dividend. It would take 73 years to break even.
The company trades at a PE 42 which means investors are paying $42 access $1 of earnings. A very expensive stock by historical standards.
Let’s review some key fundamentals to determine if this stock is worth spending sats on.
PE:PE:
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Revenues and expenses:Revenues and expenses:
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Dividend:Dividend:
Bitcoin per share:Bitcoin per share:
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Ownership breakdown :Ownership breakdown :
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The fundamentals of this company are weak. The balance sheet is bad, the growth prospects are average (projected grow slower than bitcoin), the valuation is very high, most of the float is owned by institutions, and a business model that depends on conflict.
But the company does have good free cash flow and pays a dividend that appears to be as good as a treasury bond due to the dependence of the government needing their services thus revenue is never at any real risk or competition.
From a Bitcoiner perspective. Paying 553k sats is out of the question. The valuation is too rich the dividend payment is too low and just for moral reasons why waste sats to feed the war machine?
Here is the performance according to Simply Wall Street
I am sure this stock is going to pump now and into the future because war is part of the American business model. From a fundamentals standpoint this company is way too expensive and paying almost half a million sats is crazy talk. But I understand why Ansel picked this company it’s a stalwart in the war business.