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LOCKHEED MARTIN CORP (1LMT.MI) Stock Fundamental Analysis

BIT:1LMT - Borsa Italiana Milan - US5398301094 - Common Stock - Currency: EUR

444.25  -27.15 (-5.76%)

Fundamental Rating

5

Overall 1LMT gets a fundamental rating of 5 out of 10. We evaluated 1LMT against 40 industry peers in the Aerospace & Defense industry. While 1LMT has a great profitability rating, there are some minor concerns on its financial health. 1LMT has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

1LMT had positive earnings in the past year.
In the past year 1LMT had a positive cash flow from operations.
1LMT had positive earnings in 4 of the past 5 years.
1LMT had a positive operating cash flow in 4 of the past 5 years.
1LMT.MI Yearly Net Income VS EBIT VS OCF VS FCF1LMT.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

1.2 Ratios

Looking at the Return On Assets, with a value of 12.02%, 1LMT belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
The Return On Equity of 1LMT (92.71%) is better than 97.30% of its industry peers.
1LMT's Return On Invested Capital of 19.87% is amongst the best of the industry. 1LMT outperforms 97.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1LMT is significantly above the industry average of 8.88%.
Industry RankSector Rank
ROA 12.02%
ROE 92.71%
ROIC 19.87%
ROA(3y)12.15%
ROA(5y)12.61%
ROE(3y)73.58%
ROE(5y)106.71%
ROIC(3y)20.32%
ROIC(5y)20.55%
1LMT.MI Yearly ROA, ROE, ROIC1LMT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200 -200 300

1.3 Margins

1LMT's Profit Margin of 9.36% is amongst the best of the industry. 1LMT outperforms 83.78% of its industry peers.
In the last couple of years the Profit Margin of 1LMT has grown nicely.
1LMT has a Operating Margin of 12.27%. This is in the better half of the industry: 1LMT outperforms 78.38% of its industry peers.
1LMT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.22%, 1LMT is doing worse than 78.38% of the companies in the same industry.
1LMT's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 12.27%
PM (TTM) 9.36%
GM 12.22%
OM growth 3Y-1.51%
OM growth 5Y-1.59%
PM growth 3Y-0.67%
PM growth 5Y1.76%
GM growth 3Y-1.5%
GM growth 5Y-1.72%
1LMT.MI Yearly Profit, Operating, Gross Margins1LMT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10

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6

2. Health

2.1 Basic Checks

1LMT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1LMT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
1LMT.MI Yearly Shares Outstanding1LMT.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
1LMT.MI Yearly Total Debt VS Total Assets1LMT.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.2 Solvency

An Altman-Z score of 3.67 indicates that 1LMT is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1LMT (3.67) is better than 91.89% of its industry peers.
1LMT has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as 1LMT would need 2.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.97, 1LMT is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
1LMT has a Debt/Equity ratio of 2.66. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.66, 1LMT is doing worse than 81.08% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.66
Debt/FCF 2.97
Altman-Z 3.67
ROIC/WACC1.94
WACC10.26%
1LMT.MI Yearly LT Debt VS Equity VS FCF1LMT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.30 indicates that 1LMT should not have too much problems paying its short term obligations.
1LMT has a Current ratio of 1.30. This is in the better half of the industry: 1LMT outperforms 62.16% of its industry peers.
1LMT has a Quick Ratio of 1.12. This is a normal value and indicates that 1LMT is financially healthy and should not expect problems in meeting its short term obligations.
1LMT has a better Quick ratio (1.12) than 81.08% of its industry peers.
Industry RankSector Rank
Current Ratio 1.3
Quick Ratio 1.12
1LMT.MI Yearly Current Assets VS Current Liabilites1LMT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

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2

3. Growth

3.1 Past

The earnings per share for 1LMT have decreased by -0.50% in the last year.
1LMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.03% yearly.
EPS 1Y (TTM)-0.5%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%-2.66%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.34%

3.2 Future

The Earnings Per Share is expected to grow by 4.42% on average over the next years.
Based on estimates for the next years, 1LMT will show a small growth in Revenue. The Revenue will grow by 3.11% on average per year.
EPS Next Y1.78%
EPS Next 2Y4.21%
EPS Next 3Y4.76%
EPS Next 5Y4.42%
Revenue Next Year3.83%
Revenue Next 2Y3.78%
Revenue Next 3Y3.35%
Revenue Next 5Y3.11%

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.
1LMT.MI Yearly Revenue VS Estimates1LMT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20B 40B 60B 80B
1LMT.MI Yearly EPS VS Estimates1LMT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10 20 30

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 16.57 indicates a correct valuation of 1LMT.
91.89% of the companies in the same industry are more expensive than 1LMT, based on the Price/Earnings ratio.
1LMT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 16.28, the valuation of 1LMT can be described as correct.
70.27% of the companies in the same industry are more expensive than 1LMT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1LMT to the average of the S&P500 Index (92.74), we can say 1LMT is valued rather cheaply.
Industry RankSector Rank
PE 16.57
Fwd PE 16.28
1LMT.MI Price Earnings VS Forward Price Earnings1LMT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 500 1K 1.5K 2K

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, 1LMT is valued a bit cheaper than the industry average as 70.27% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 1LMT is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.73
EV/EBITDA 12.17
1LMT.MI Per share data1LMT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1LMT does not grow enough to justify the current Price/Earnings ratio.
1LMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.31
PEG (5Y)3.29
EPS Next 2Y4.21%
EPS Next 3Y4.76%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.87%, 1LMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.41, 1LMT pays a better dividend. On top of this 1LMT pays more dividend than 97.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, 1LMT pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.87%

5.2 History

On average, the dividend of 1LMT grows each year by 8.25%, which is quite nice.
Dividend Growth(5Y)8.25%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

1LMT pays out 45.66% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1LMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.66%
EPS Next 2Y4.21%
EPS Next 3Y4.76%
1LMT.MI Yearly Income VS Free CF VS Dividend1LMT.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B
1LMT.MI Dividend Payout.1LMT.MI Dividend Payout, showing the Payout Ratio.1LMT.MI Dividend Payout.PayoutRetained Earnings

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LOCKHEED MARTIN CORP

BIT:1LMT (1/31/2025, 7:00:00 PM)

444.25

-27.15 (-5.76%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-28 2025-01-28/bmo
Earnings (Next)N/A N/A
Inst Owners74.11%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap105.31B
Analysts73.57
Price Target534.29 (20.27%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.87%
Yearly Dividend12.35
Dividend Growth(5Y)8.25%
DP45.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.24%
Min EPS beat(2)3.56%
Max EPS beat(2)4.91%
EPS beat(4)4
Avg EPS beat(4)6.15%
Min EPS beat(4)3.56%
Max EPS beat(4)8.67%
EPS beat(8)6
Avg EPS beat(8)4.19%
EPS beat(12)8
Avg EPS beat(12)0.46%
EPS beat(16)11
Avg EPS beat(16)1.62%
Revenue beat(2)1
Avg Revenue beat(2)1.44%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)5.27%
Revenue beat(4)3
Avg Revenue beat(4)3.3%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)6.3%
Revenue beat(8)5
Avg Revenue beat(8)2.43%
Revenue beat(12)5
Avg Revenue beat(12)0.67%
Revenue beat(16)5
Avg Revenue beat(16)-0.09%
PT rev (1m)-8.23%
PT rev (3m)-3.06%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.24%
Valuation
Industry RankSector Rank
PE 16.57
Fwd PE 16.28
P/S 1.53
P/FCF 16.73
P/OCF 13.09
P/B 15.12
P/tB N/A
EV/EBITDA 12.17
EPS(TTM)26.81
EY6.03%
EPS(NY)27.29
Fwd EY6.14%
FCF(TTM)26.56
FCFY5.98%
OCF(TTM)33.94
OCFY7.64%
SpS291.02
BVpS29.39
TBVpS-22.77
PEG (NY)9.31
PEG (5Y)3.29
Profitability
Industry RankSector Rank
ROA 12.02%
ROE 92.71%
ROCE 23.2%
ROIC 19.87%
ROICexc 21.68%
ROICexgc 34.4%
OM 12.27%
PM (TTM) 9.36%
GM 12.22%
FCFM 9.13%
ROA(3y)12.15%
ROA(5y)12.61%
ROE(3y)73.58%
ROE(5y)106.71%
ROIC(3y)20.32%
ROIC(5y)20.55%
ROICexc(3y)21.85%
ROICexc(5y)22.05%
ROICexgc(3y)37.78%
ROICexgc(5y)38.12%
ROCE(3y)23.73%
ROCE(5y)24%
ROICexcg growth 3Y-0.21%
ROICexcg growth 5Y-1.85%
ROICexc growth 3Y-0.88%
ROICexc growth 5Y0.22%
OM growth 3Y-1.51%
OM growth 5Y-1.59%
PM growth 3Y-0.67%
PM growth 5Y1.76%
GM growth 3Y-1.5%
GM growth 5Y-1.72%
F-Score5
Asset Turnover1.28
Health
Industry RankSector Rank
Debt/Equity 2.66
Debt/FCF 2.97
Debt/EBITDA 1.87
Cap/Depr 118.8%
Cap/Sales 2.53%
Interest Coverage 250
Cash Conversion 80.95%
Profit Quality 97.48%
Current Ratio 1.3
Quick Ratio 1.12
Altman-Z 3.67
F-Score5
WACC10.26%
ROIC/WACC1.94
Cap/Depr(3y)116.26%
Cap/Depr(5y)122.1%
Cap/Sales(3y)2.43%
Cap/Sales(5y)2.5%
Profit Quality(3y)106.3%
Profit Quality(5y)101.27%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.5%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%-2.66%
EPS Next Y1.78%
EPS Next 2Y4.21%
EPS Next 3Y4.76%
EPS Next 5Y4.42%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.34%
Revenue Next Year3.83%
Revenue Next 2Y3.78%
Revenue Next 3Y3.35%
Revenue Next 5Y3.11%
EBIT growth 1Y1.65%
EBIT growth 3Y-0.43%
EBIT growth 5Y3.01%
EBIT Next Year15.82%
EBIT Next 3Y8.2%
EBIT Next 5Y6.41%
FCF growth 1Y-23.97%
FCF growth 3Y-0.99%
FCF growth 5Y27.34%
OCF growth 1Y-18.02%
OCF growth 3Y-1.08%
OCF growth 5Y20.34%