One-Hour Analysis of L-3 Communications

Using some of our recommended tools and websites, here is what I learned about L-3 Communications in one hour of Internet research.

From Value Line

  • Stock is pretty cheap, 1x book, 10x EPS, 7x CF
  • But all of book value is goodwill, not great, but nor disqualifying
  • Not a lot of charge-offs, a major positive
  • Stock was a good relative performer until early 2009, since then it’s been miserable
  • Balance sheet has improved, but still is at best average
  • Consistent stock buybacks since 2006, a very positive sign
  • Dividend payout ratio about 25%, still room for small dividend increases [Read more…]