LOCKHEED MARTIN CORP (1LMT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LMT - US5398301094 - Common Stock
382.35 EUR
+11.45 (+3.09%)
Taking everything into account, 1LMT scores 5 out of 10 in our fundamental rating. 1LMT was compared to 53 industry peers in the Aerospace & Defense industry. 1LMT has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1LMT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1LMT was profitable.
- 1LMT had a positive operating cash flow in the past year.
- Each year in the past 5 years 1LMT has been profitable.
- 1LMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.14%, 1LMT belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 78.82%, 1LMT belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 14.80%, 1LMT belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
- 1LMT had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 9.24%.
- The last Return On Invested Capital (14.80%) for 1LMT is well below the 3 year average (18.86%), which needs to be investigated, but indicates that 1LMT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 78.82% | ||
| ROIC | 14.8% |
ROA(3y)11.21%
ROA(5y)11.9%
ROE(3y)82.45%
ROE(5y)83.72%
ROIC(3y)18.86%
ROIC(5y)19.56%
1.3 Margins
- 1LMT has a Profit Margin of 5.85%. This is comparable to the rest of the industry: 1LMT outperforms 55.81% of its industry peers.
- 1LMT's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 8.30%, 1LMT perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
- 1LMT's Operating Margin has declined in the last couple of years.
- 1LMT has a worse Gross Margin (8.25%) than 83.72% of its industry peers.
- In the last couple of years the Gross Margin of 1LMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.3% | ||
| PM (TTM) | 5.85% | ||
| GM | 8.25% |
OM growth 3Y-9.81%
OM growth 5Y-6.86%
PM growth 3Y-7.27%
PM growth 5Y-6.33%
GM growth 3Y-10.04%
GM growth 5Y-6.72%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1LMT is creating value.
- Compared to 1 year ago, 1LMT has less shares outstanding
- Compared to 5 years ago, 1LMT has less shares outstanding
- The debt/assets ratio for 1LMT is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.03 indicates that 1LMT is not in any danger for bankruptcy at the moment.
- 1LMT's Altman-Z score of 3.03 is fine compared to the rest of the industry. 1LMT outperforms 65.12% of its industry peers.
- The Debt to FCF ratio of 1LMT is 6.50, which is on the high side as it means it would take 1LMT, 6.50 years of fcf income to pay off all of its debts.
- 1LMT has a Debt to FCF ratio (6.50) which is comparable to the rest of the industry.
- 1LMT has a Debt/Equity ratio of 3.47. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 3.47, 1LMT is doing worse than 83.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.47 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.56
WACC9.49%
2.3 Liquidity
- 1LMT has a Current Ratio of 0.98. This is a bad value and indicates that 1LMT is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.98, 1LMT is not doing good in the industry: 79.07% of the companies in the same industry are doing better.
- 1LMT has a Quick Ratio of 0.98. This is a bad value and indicates that 1LMT is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.83, 1LMT perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.27% over the past year.
- 1LMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.03% yearly.
- 1LMT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.09%.
- 1LMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.
EPS 1Y (TTM)4.27%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%6.42%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%0.18%
3.2 Future
- 1LMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.66% yearly.
- 1LMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.23% yearly.
EPS Next Y-18.31%
EPS Next 2Y3.09%
EPS Next 3Y4.59%
EPS Next 5Y5.66%
Revenue Next Year4.27%
Revenue Next 2Y4.06%
Revenue Next 3Y3.94%
Revenue Next 5Y3.23%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.40 indicates a correct valuation of 1LMT.
- Compared to the rest of the industry, the Price/Earnings ratio of 1LMT indicates a rather cheap valuation: 1LMT is cheaper than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, 1LMT is valued a bit cheaper.
- 1LMT is valuated correctly with a Price/Forward Earnings ratio of 15.19.
- Based on the Price/Forward Earnings ratio, 1LMT is valued cheaper than 90.70% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, 1LMT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
- 72.09% of the companies in the same industry are more expensive than 1LMT, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, 1LMT is valued a bit cheaper than the industry average as 69.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.37 | ||
| EV/EBITDA | 16.39 |
4.3 Compensation for Growth
- 1LMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.06
EPS Next 2Y3.09%
EPS Next 3Y4.59%
5. Dividend
5.1 Amount
- 1LMT has a Yearly Dividend Yield of 2.89%.
- The stock price of 1LMT dropped by -24.82% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 0.74, 1LMT pays a better dividend. On top of this 1LMT pays more dividend than 95.35% of the companies listed in the same industry.
- 1LMT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
- The dividend of 1LMT is nicely growing with an annual growth rate of 7.21%!
Dividend Growth(5Y)7.21%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1LMT pays out 73.60% of its income as dividend. This is not a sustainable payout ratio.
- 1LMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP73.6%
EPS Next 2Y3.09%
EPS Next 3Y4.59%
LOCKHEED MARTIN CORP / 1LMT.MI FAQ
Can you provide the ChartMill fundamental rating for LOCKHEED MARTIN CORP?
ChartMill assigns a fundamental rating of 5 / 10 to 1LMT.MI.
What is the valuation status of LOCKHEED MARTIN CORP (1LMT.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to LOCKHEED MARTIN CORP (1LMT.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for LOCKHEED MARTIN CORP?
LOCKHEED MARTIN CORP (1LMT.MI) has a profitability rating of 6 / 10.
How financially healthy is LOCKHEED MARTIN CORP?
The financial health rating of LOCKHEED MARTIN CORP (1LMT.MI) is 3 / 10.
What is the expected EPS growth for LOCKHEED MARTIN CORP (1LMT.MI) stock?
The Earnings per Share (EPS) of LOCKHEED MARTIN CORP (1LMT.MI) is expected to decline by -18.31% in the next year.