Leonardo S.p.A. (LDO.MI) stock analysis

In our weekly check, Leonardo S.p.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2.

About Leonardo S.p.A.

Leonardo S.p.A. is an Industrials company (Aerospace & Defense) based in Italy, listed on MIL as LDO.MI.

What our checks show for LDO.MI

Red flags

• The stock has fallen as much as 88% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 12.1 years.

Warning signs

• The net margin is only 6.3%: little room if costs rise.
• The price swings a lot: 37.4% annual volatility. Expect large ups and downs.
• Return on capital (ROCE) is only 9.5%.

Strengths

• Net debt is only 0.5x a year of EBITDA: the balance sheet has room.
• The net margin rose by 2.1 points over 5 years, to 6.3%.
• The gross margin is 8.8% and has risen by 1.4 points: pricing power is holding.
• Operating cash flow is 1.63x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 17% a year over the next years.
• The dividend takes 22% of profit: there is a cushion.

Similar companies

BBD-B.TO · RKLB · S63.SI · AM.PA · AXON · ESLT

Questions

What grade does Leonardo S.p.A. (LDO.MI) have?

In our weekly check, Leonardo S.p.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of LDO.MI stock?

This week's biggest flags for Leonardo S.p.A.: Deep past fall, Slow recovery after falls, Thin margins. In total 5 of 25 checks show a warning or a red flag.

What does Leonardo S.p.A. do?

Leonardo S.p.A. is an Industrials company (Aerospace & Defense) based in Italy, listed on MIL as LDO.MI.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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