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Why Leonardo S.p.a. (BIT:LDO) Could Be Your Next Investment

Simply Wall St

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Leonardo S.p.a. (BIT:LDO) due to its excellent fundamentals in more than one area. LDO is a company with a strong history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Leonardo here.

Good value with proven track record

In the past couple of years, LDO has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, LDO also outperformed its industry, which delivered a growth of 13%. This is an optimistic signal for the future. LDO's share price is trading below its true value according to its price-to-earnings ratio of 11.3x compared to its industry as well as the wider stock market, which means it is relatively cheaper than its peers.

BIT:LDO Income Statement, August 31st 2019

Next Steps:

For Leonardo, I've put together three pertinent aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for LDO’s future growth? Take a look at our free research report of analyst consensus for LDO’s outlook.
  2. Financial Health: Are LDO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LDO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.