LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LMT - US5398301094 - Common Stock
544.17 USD
+25.73 (+4.96%)
Taking everything into account, LMT scores 5 out of 10 in our fundamental rating. LMT was compared to 71 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of LMT get a neutral evaluation. Nothing too spectacular is happening here. LMT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
LMT had positive earnings in the past year.
LMT had a positive operating cash flow in the past year.
Each year in the past 5 years LMT has been profitable.
In the past 5 years LMT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.97%, LMT is doing good in the industry, outperforming 77.46% of the companies in the same industry.
With an excellent Return On Equity value of 67.95%, LMT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.02%, LMT belongs to the top of the industry, outperforming 91.55% of the companies in the same industry.
LMT had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 8.63%.
The 3 year average ROIC (18.86%) for LMT is well above the current ROIC(14.02%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 67.95% | ||
| ROIC | 14.02% |
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
LMT's Profit Margin of 5.73% is in line compared to the rest of the industry. LMT outperforms 59.15% of its industry peers.
In the last couple of years the Profit Margin of LMT has declined.
The Operating Margin of LMT (8.32%) is comparable to the rest of the industry.
LMT's Operating Margin has declined in the last couple of years.
LMT has a Gross Margin of 8.25%. This is amonst the worse of the industry: LMT underperforms 81.69% of its industry peers.
LMT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.32% | ||
| PM (TTM) | 5.73% | ||
| 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
LMT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for LMT has been reduced compared to 1 year ago.
Compared to 5 years ago, LMT has less shares outstanding
LMT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.27 indicates that LMT is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.27, LMT perfoms like the industry average, outperforming 45.07% of the companies in the same industry.
The Debt to FCF ratio of LMT is 4.83, which is a neutral value as it means it would take LMT, 4.83 years of fcf income to pay off all of its debts.
LMT has a better Debt to FCF ratio (4.83) than 74.65% of its industry peers.
LMT has a Debt/Equity ratio of 3.32. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.32, LMT is not doing good in the industry: 85.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.27 |
ROIC/WACC1.39
WACC10.06%
2.3 Liquidity
LMT has a Current Ratio of 1.13. This is a normal value and indicates that LMT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.13, LMT is doing worse than 84.51% of the companies in the same industry.
LMT has a Quick Ratio of 1.13. This is a bad value and indicates that LMT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LMT (0.97) is worse than 74.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.55% over the past year.
The Earnings Per Share has been growing slightly by 5.03% on average over the past years.
LMT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.88%.
The Revenue has been growing slightly by 3.50% on average over the past years.
EPS 1Y (TTM)4.55%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%2.21%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%8.8%
3.2 Future
Based on estimates for the next years, LMT will show a small growth in Earnings Per Share. The EPS will grow by 4.82% on average per year.
LMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
EPS Next Y-19.09%
EPS Next 2Y3.27%
EPS Next 3Y4.58%
EPS Next 5Y4.82%
Revenue Next Year4.63%
Revenue Next 2Y4.45%
Revenue Next 3Y4.25%
Revenue Next 5Y2.92%
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 18.64 indicates a rather expensive valuation of LMT.
Based on the Price/Earnings ratio, LMT is valued cheaper than 97.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of LMT to the average of the S&P500 Index (27.00), we can say LMT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.41, the valuation of LMT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LMT is valued cheaply inside the industry as 95.77% of the companies are valued more expensively.
LMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LMT is valued cheaper than 83.10% of the companies in the same industry.
91.55% of the companies in the same industry are more expensive than LMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.42 | ||
| EV/EBITDA | 17.81 |
4.3 Compensation for Growth
LMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.71
EPS Next 2Y3.27%
EPS Next 3Y4.58%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.85%. Purely for dividend investing, there may be better candidates out there.
LMT's Dividend Yield is rather good when compared to the industry average which is at 0.39. LMT pays more dividend than 98.59% of the companies in the same industry.
LMT's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
On average, the dividend of LMT grows each year by 7.21%, which is quite nice.
LMT has paid a dividend for at least 10 years, which is a reliable track record.
As LMT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.21%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
74.05% of the earnings are spent on dividend by LMT. This is not a sustainable payout ratio.
LMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP74.05%
EPS Next 2Y3.27%
EPS Next 3Y4.58%
NYSE:LMT (1/9/2026, 3:25:05 PM)
544.17
+25.73 (+4.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners74.7%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change-2.08%
Market Cap125.92B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts73.33
Price Target536.54 (-1.4%)
Short Float %1.25%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend12.91
Dividend Growth(5Y)7.21%
DP74.05%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.11%
Min EPS beat(2)8.18%
Max EPS beat(2)12.03%
EPS beat(4)4
Avg EPS beat(4)12.06%
Min EPS beat(4)8.18%
Max EPS beat(4)14.24%
EPS beat(8)8
Avg EPS beat(8)9.1%
EPS beat(12)10
Avg EPS beat(12)6.81%
EPS beat(16)12
Avg EPS beat(16)3.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)-0.09%
Revenue beat(8)3
Avg Revenue beat(8)0.83%
Revenue beat(12)5
Avg Revenue beat(12)1.08%
Revenue beat(16)5
Avg Revenue beat(16)0.1%
PT rev (1m)-1.35%
PT rev (3m)10.01%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)1.48%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 18.41 | ||
| P/S | 1.72 | ||
| P/FCF | 27.42 | ||
| P/OCF | 19.8 | ||
| P/B | 20.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.81 |
EPS(TTM)29.19
EY5.36%
EPS(NY)29.55
Fwd EY5.43%
FCF(TTM)19.85
FCFY3.65%
OCF(TTM)27.49
OCFY5.05%
SpS316.98
BVpS26.71
TBVpS-30.57
PEG (NY)N/A
PEG (5Y)3.71
Graham Number132.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 67.95% | ||
| ROCE | 16.37% | ||
| ROIC | 14.02% | ||
| ROICexc | 15.45% | ||
| ROICexgc | 25.41% | ||
| OM | 8.32% | ||
| PM (TTM) | 5.73% | ||
| GM | 8.25% | ||
| FCFM | 6.26% |
ROA(3y)11.21%
ROA(5y)11.9%
ROE(3y)82.45%
ROE(5y)83.72%
ROIC(3y)18.86%
ROIC(5y)19.56%
ROICexc(3y)20.04%
ROICexc(5y)21.1%
ROICexgc(3y)34.88%
ROICexgc(5y)36.6%
ROCE(3y)22.03%
ROCE(5y)22.85%
ROICexgc growth 3Y-7.66%
ROICexgc growth 5Y-4.12%
ROICexc growth 3Y-8.46%
ROICexc growth 5Y-4.57%
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%
F-Score5
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Debt/EBITDA | 2.63 | ||
| Cap/Depr | 105.05% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.67% | ||
| Profit Quality | 109.36% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 3.27 |
F-Score5
WACC10.06%
ROIC/WACC1.39
Cap/Depr(3y)115.09%
Cap/Depr(5y)118.75%
Cap/Sales(3y)2.47%
Cap/Sales(5y)2.48%
Profit Quality(3y)98.69%
Profit Quality(5y)102.38%
High Growth Momentum
Growth
EPS 1Y (TTM)4.55%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%2.21%
EPS Next Y-19.09%
EPS Next 2Y3.27%
EPS Next 3Y4.58%
EPS Next 5Y4.82%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%8.8%
Revenue Next Year4.63%
Revenue Next 2Y4.45%
Revenue Next 3Y4.25%
Revenue Next 5Y2.92%
EBIT growth 1Y-30.21%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year10.16%
EBIT Next 3Y10.84%
EBIT Next 5Y7.61%
FCF growth 1Y-20.85%
FCF growth 3Y-11.77%
FCF growth 5Y-1.93%
OCF growth 1Y-14.99%
OCF growth 3Y-8.9%
OCF growth 5Y-0.95%
LOCKHEED MARTIN CORP / LMT FAQ
Can you provide the ChartMill fundamental rating for LOCKHEED MARTIN CORP?
ChartMill assigns a fundamental rating of 5 / 10 to LMT.
Can you provide the valuation status for LOCKHEED MARTIN CORP?
ChartMill assigns a valuation rating of 6 / 10 to LOCKHEED MARTIN CORP (LMT). This can be considered as Fairly Valued.
Can you provide the profitability details for LOCKHEED MARTIN CORP?
LOCKHEED MARTIN CORP (LMT) has a profitability rating of 6 / 10.
How financially healthy is LOCKHEED MARTIN CORP?
The financial health rating of LOCKHEED MARTIN CORP (LMT) is 4 / 10.
What is the earnings growth outlook for LOCKHEED MARTIN CORP?
The Earnings per Share (EPS) of LOCKHEED MARTIN CORP (LMT) is expected to decline by -19.09% in the next year.