Current share price and chart analysis ($LDO (-3,78%) )
- Current price (EUR): 47.74 € (as of March 18, 2025, 19:43 UTC)
- Technical analysis (1-year chart):
- Trend: The price shows a strong upward trend with an increase of over 116% in the last year.
Resistance and support levels:
- Resistance (R1): € 52.04
- Support (S1): € 45.32
- Indicators: The price is currently close to the upper end of the Bollinger band, indicating a possible overbought situation.
- Potential entry points: A pullback to the support level at €45.32 could be a good entry point, especially if the price remains stable there.
Fundamental key figures
- Valuation Metrics (2024):
- P/E ratio (PE ratio): 29.55 (relatively high, possible overvaluation compared to the sector average exceptions ($RHM (+1,09%) ) )
- P/B ratio (PB ratio): 3.03 (moderate)
- P/E ratio (PS ratio): 1.99 (acceptable)
- Enterprise value: € 29.3 billion
- Growth metrics (2024):
- Sales growth: 16.17% (strong)
- Net income growth: 63.22% (very strong)
- EPS growth: 64.04% (robust)
- Financial health (2024):
- Current ratio: 0.97 (slightly below the ideal value of 1:1, possible liquidity problems)
- Debt to equity ratio: 0.52 (balanced)
- Return on equity (ROE): 10.65% (moderate)
- Return on invested capital (ROIC): 3.56 % (efficient, but room for improvement)
Influence of the key figures on the valuation
- ValuationThe high P/E ratio indicates a possible overvaluation, which could make investors cautious. However, the strong growth in sales and profits partially justifies the higher valuation.
- Growth: The strong growth rates in sales, net income and EPS are positive and support the current valuation.
- Financial healthThe slightly low current ratio could signal short-term liquidity problems, while the moderate leverage and return on equity indicate a solid capital structure.
Business model and strategic initiatives
- IndustriesLeonardo is active in helicopters, defense electronics, aerostructures and aerospace.
- Strategy: Investments in cyber security and digitalization as well as international alliances strengthen the competitive position.
- Future prospects: The updated industry project for 2025-2029 forecasts cumulative orders of €118 billion and sales of €106 billion.
Risks and uncertainties
- Market volatility: Geopolitical risks and supply chain disruptions could impact performance.
- Valuation: The high P/E ratio could lead to price corrections in the event of negative market developments.
- Liquidity: The slightly low current ratio requires close monitoring of the short-term financial situation.
Conclusion and recommendation
Leonardo S.p.A. shows a strong financial performance and strategic initiatives that position the company well for future growth. However, investors should keep an eye on the high valuation and potential liquidity problems. An entry on a pullback to the support level of €45.32 could represent an attractive opportunity.
