L3Harris TechnologiesMEX:LHX 74 ROE % is 10.43% as of Mar. 2026, which is 13% above its 10-year median of 9.27. GuruFocus rates MEX:LHX with a GF Score™ of 74/100 and a GF Value™ of MXN4,603.93 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 347 Aerospace & Defense companies, L3Harris Technologies ranks better than 58.21% on this metric.
The historical rank and industry rank for L3Harris Technologies's ROE % or its related term are showing as below:
MEX:LHX'
s ROE % Range Over the Past 10 Years
Min: 5.63 Med: 9.27 Max: 28.58
Current: 8.9
During the past 13 years, L3Harris Technologies's highest ROE % was 28.58%. The lowest was 5.63%. And the median was 9.27%.
MEX:LHX's ROE % is ranked better than 58.21% of 347
companies
in the Aerospace & Defense industry
Industry Median: 5.91
vs MEX:LHX: 8.90
L3Harris Technologies (MEX:LHX) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, L3Harris Technologies's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
L3Harris Technologies ROE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, L3Harris Technologies's ROE % distribution charts can be found below:
* The bar in red indicates where L3Harris Technologies's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
L3Harris Technologies (MEX:LHX) has a ROE % of 10.43% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on L3Harris Technologies and its competitors. This is 13% above median its historical median of 9.27. Over the past decade, L3Harris Technologies' ROE % has ranged from 5.63 to 28.58. According to the industry distribution chart, L3Harris Technologies ranks #145 out of 347 companies in the Aerospace & Defense industry, placing it in the top 41.8%.
Is L3Harris Technologies' ROE % too high?
L3Harris Technologies' current ROE % of 10.43% is 13% above median its 10-year median of 9.27. Over the past 10 years, this metric has ranged from a low of 5.63 to a high of 28.58. The Aerospace & Defense industry median ROE % is 5.91. L3Harris Technologies' value of 10.43% is 76.5% above this industry median. Based on the distribution chart, L3Harris Technologies ranks #145 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, L3Harris Technologies has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does L3Harris Technologies' ROE % compare to TDG and HEI.A?
According to the Aerospace & Defense industry distribution chart, L3Harris Technologies ranks #145 out of 347 companies for ROE %. This puts L3Harris Technologies in the upper half of its industry. The industry median ROE % is 5.91. L3Harris Technologies' value of 10.43% is 76.5% above this benchmark. Historically, L3Harris Technologies' own ROE % has ranged from 5.63 to 28.58 over the past decade. While the company's 10-year median is 9.27 vs. the industry median of 5.91, L3Harris Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.91, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. L3Harris Technologies's current ROE % of 10.43% is 76.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on L3Harris Technologies and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L3Harris Technologies's current ROE % is 10.43%, which is 13% above median its own 10-year median of 9.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L3Harris Technologies stock overvalued right now?
Based on GuruFocus' analysis, L3Harris Technologies (MEX:LHX) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN4,603.93, compared to a current price of MXN5,183.00 — trading 12.6% above its estimated fair value. The current ROE % is 10.43%, which is 13% above median its 10-year median of 9.27 and 76.5% above the Aerospace & Defense industry median of 5.91. L3Harris Technologies' overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For L3Harris Technologies (MEX:LHX), the current ROE % is 10.43% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is L3Harris Technologies (MEX:LHX) Overvalued in 2026?
Based on GuruFocus' analysis, L3Harris Technologies stock appears to be overvalued.
The current stock price of MXN5,183.00 is trading 12.6% above its estimated GF Value™ of MXN4,603.93.
GuruFocus considers L3Harris Technologies to be Modestly Overvalued.
Key valuation signals for MEX:LHX:
ROE %: 10.43% (13% above median its 10-year median of 9.27)
GF Value™: MXN4,603.93 vs. price of MXN5,183.00 (12.6% above fair value)
Industry Position: 76.5% above the Aerospace & Defense median (#145 of 347)
No single metric tells the full story. See the MEX:LHX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
In addition to its legacy software-defined radio franchise, L3Harris Technologies has through a series of acquisitions established franchises producing uncrewed aerial vehicles, sensors, avionics, space-based systems, missiles, and solid rocket motors. It is also adept at refitting civilian aircraft for military use, provides military and commercial training services, and maintains the US Federal Aviation Administration's communications infrastructure.
74GF Score
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