NYSE:LMT stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Dec 14, 2023

LOCKHEED MARTIN CORP (NYSE:LMT) was identified as a decent value stock by our stock screener. NYSE:LMT scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

What does the Valuation looks like for NYSE:LMT

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:LMT has achieved a 8 out of 10:

Based on the Price/Earnings ratio, LMT is valued cheaply inside the industry as 92.19% of the companies are valued more expensively.
LMT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.40.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 82.81% of the companies listed in the same industry.
LMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.94.
Based on the Enterprise Value to EBITDA ratio, LMT is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 92.19% of the companies listed in the same industry.
LMT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LMT has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Insights: NYSE:LMT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LMT was assigned a score of 8 for profitability:

LMT has a Return On Assets of 12.29%. This is amongst the best in the industry. LMT outperforms 96.88% of its industry peers.
The Return On Equity of LMT (75.11%) is better than 98.44% of its industry peers.
With an excellent Return On Invested Capital value of 18.47%, LMT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LMT is significantly above the industry average of 7.70%.
LMT's Profit Margin of 10.29% is amongst the best of the industry. LMT outperforms 84.38% of its industry peers.
In the last couple of years the Profit Margin of LMT has grown nicely.
LMT has a better Operating Margin (12.72%) than 84.38% of its industry peers.

Deciphering NYSE:LMT's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:LMT, the assigned 6 for health provides valuable insights:

LMT has an Altman-Z score of 3.67. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.67, LMT is doing good in the industry, outperforming 71.88% of the companies in the same industry.
LMT has a debt to FCF ratio of 3.00. This is a good value and a sign of high solvency as LMT would need 3.00 years to pay back of all of its debts.
LMT's Debt to FCF ratio of 3.00 is amongst the best of the industry. LMT outperforms 93.75% of its industry peers.

Unpacking NYSE:LMT's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:LMT scores a 4 out of 10:

LMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.67%, which is quite impressive.
Measured over the past years, LMT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.23% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of LMT

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.