LEONARDO

Analysis of Leonardo share price

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Are you considering an investment in Leonardo company shares and wish to learn more about this Italian company and the analysis of its share price? In this case we offer you the opportunity through this dedicated article to discover some key information and stock market as well as economic data that will assist you in implementing your future analyses of this asset. Here we provide details on this group and its activities with a presentation of its major competitors on the market as well as recent partnerships and some advice for your fundamental analysis.

Elements that can influence the price of this asset:

Analysis N°1

It is of course important to monitor the defence sector in general with an in depth surveillance of Leonardo’s major competitors on the market by following their major news and events.

Analysis N°2

We would also closely follow changes in the budgets allocated by the various states in this sector which will greatly influence the orders.

Analysis N°3

As technology and innovations are at the heart of this company’s strategies we would attentively follow all investments by Leonardo in research and development or the perfection of new devices and equipment.

Analysis N°4

The partnerships that the Leonardo Company implements, as we shall examine later in this article, are of major importance for the future profitability of this company and it is therefore highly recommended to monitor these events assiduously.

Analysis N°5

Finally, we would of course follow all the financial results and major publications of this group ensuring that these are compared with the figures predicted by the analysts’ and the objectives fixed by the group.

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General presentation of Leonardo

We shall now examine the Leonardo Company in more detail with explanations of its activities. In fact with a better understanding and knowledge of the sources of this group’s revenue and the sectors in which it exercises its activities you will be more able to understand the challenges it faces and its future perspectives.

The Leonardo Company is an Italian group specialised in the defence and aerospace sectors. More precisely, this company is currently one of the largest European companies in the manufacture and sale of aerospace defence systems. To best understand this group’s activities it is easier to divide them into the different activity sectors based on the turnover they generate and how:

  • The activities related to the production and sale of defence systems represent the principal source of the group’s revenue with 45.1% of its turnover. These notably concern weapons and radar.
  • The manufacture and sale of helicopters holds second position and represents nearly 29.1% of this group’s turnover with both civil and military helicopters.
  • Then we find the aeronautical equipment sector which generates 24.6% of this company’s revenue, notably with airplanes.
  • Finally the remaining 1.2% of this company’s turnover is generated through other related activities.

 

It can also be extremely useful to know the distribution of the group’s turnover from a geographical point of view. The Leonardo Company achieves 16.1% of its turnover in Italy, 10.2% in the United Kingdom, 23.2% in other European countries, 28.9% in the United States and 21.6% from other countries around the world.

Analysis of Leonardo share price
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The major competitors of Leonardo

Although Leonardo is of course one of the leaders in this activity sector worldwide, it is clearly not alone in this sector and must face a number of significant competitors which you should know about and analyse before taking position on this asset.

Lockheed Martin 

This American company is currently the world leader in the defence and security sectors. It designs and builds systems based on electronics and technology mainly destined for the aerospace sector.

Boeing 

The American giant Boeing is another major competitor of Leonardo. This aeronautical and aerospace manufacturer is in fact specialised in civil aviation as well as military aeronautical equipment such as helicopters, satellites and launchers.

Northrop Grumman Corporation

This American conglomeration was created through the merger of two companies in 1994 and is specialised in aeronautical, aerospace and electronics defence. It is one of the largest companies worldwide in the armaments sector.

Raytheon

This is another American group specialised in defence and electronics systems for the aerospace sector. In 2020 this group merged with United Technologies and became Raytheon Technologies thus becoming one of the largest groups in this sector worldwide.

Aviation Industry Corporation of China

This Chinese group is a private holding company specialised in aeronautical manufacturing which was separated into two distinct parts in 1999 before being reunited in 2008. AVIC is specialised in the manufacture of military aircraft, airline aircraft and helicopters.

General Dynamics

This American company was previously a manufacturer of military aircraft for the United States government. Nowadays although it no longer produces military aircraft it is still one of the largest companies worldwide in its sector which is that of the sale of arms.

BAE Systems

This British company is specialised in the defence and aerospace sector and is also present in North America through its subsidiary BAE Systems Inc.. Concerning the defence sector, the group is one of the largest companies in this sector worldwide at present. It was formed through a merger in 1999 of the British Aerospace company and the Marconi Electronic Systems company.

Norinco

This company, also known as the China North Industries Corporation, was created in 1980 and is specialised in the export of weapons manufactured in the People’s Republic of China. This company is in fact the second largest Chinese company in the weapons sector and is placed among the top ten worldwide in terms of turnover. It employs over 980,000 people worldwide which is more than all the American companies in this activity sector.

Airbus 

Finally, the Airbus group should also be considered a direct competitor of the Leonardo Group. This international French industrial corporation is in fact specialised in the aeronautical and aerospace sectors, both civil and military. It was created in the year 2000 under the name the European Aeronautic Defence and Space Company, or EADS. The group is currently composed of mainly the large French, German and Spanish manufacturers and is owned by the Lagardère and Daimler companies.


The major partners of Leonardo

Of course, although the Leonardo Group has a number of adversaries in its activity sector, it also has certain allies and in fact regularly implements strategic partnerships with the aim of increasing its growth, enter new markets or increase profitability. Here are a few recent examples that will assist you in understanding these advantages.

Kangde Investment Group

In 2018 for example, this Italian aeronautical specialist company signed a Memorandum of Understanding with the Chinese Kangde Investment Group. This agreement was signed in relation to a manufacturing programme for a long range carrier plane, the COMAC CR929, with the principal objective of increasing its presence on the Chinese market. Still relative to this agreement, Leonardo would provide its skills and intellectual property developed in Italy and Kangde would take responsibility for the financial cover of this programme. The signature of this agreement also required the creation of a joint company named Kangde Marco Polo Aerostructures Jiangsu which would be responsible for the implementation, production and assembly of composite material components for the CR929.

Thales 

Much later, in 2019, the Leonardo Group also implemented a targeted partnership with the Thales Company with the aim of acquiring the aerospace activities of the Maxar Technologies Company. This subsidiary based in the United States is notably responsible for the manufacture of antennas for satellites. It should be remembered here that this is not the first partnership between Thales and Leonardo, the two companies already combined their forces to create a joint company named Thales Aliena Space which is owned 67% by Thales and 33% by Leonardo.

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Frequently Asked Questions

How and why did the Finmeccanica Company become Leonardo?

This company was not always named the Leonardo Company. In fact, it was originally named Finmeccanica. It wasn’t until January 2017 that the company changed its name to Leonardo SpA in honour of the famous Italian scientist Leonardo de Vinci. This decision was taken during a large restructuring programme implemented by the delegated administrator, Mauro Moretto who started his mandate in 2014.

Is the Leonardo share price included in a major market index?

The Leonardo Company currently boasts one of the largest stock market company capitals in Italy. This company is therefore included in several stock market indices, major and minor. The best known of the indices in which it is included is the major Italian stock market index which is of course the FTSE MIB.

How to complete a technical analysis of the Leonardo share price?

A fundamental analysis of the Leonardo share price requires a study of the economical events and publications relative to this company but a technical analysis, which is complementary, refers mainly to the examination of stock market charts which can display various technical indicators relative to trends and volatility.

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