LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - NYSE:LMT - US5398301094 - Common Stock
468.26 USD
-1.65 (-0.35%)
468.3 USD
+0.04 (+0.01%)
We assign a fundamental rating of 5 out of 10 to LMT. LMT was compared to 71 industry peers in the Aerospace & Defense industry. LMT has an average financial health and profitability rating. LMT has a correct valuation and a medium 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.
LMT had positive earnings in each of the past 5 years.
LMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LMT has a better Return On Assets (6.97%) than 77.46% of its industry peers.
LMT has a Return On Equity of 67.95%. This is amongst the best in the industry. LMT outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 14.02%, LMT belongs to the best 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 8.47%.
The last Return On Invested Capital (14.02%) for LMT is well below the 3 year average (18.86%), which needs to be investigated, but indicates that LMT had better years and this may not be a problem.
| 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
With a decent Profit Margin value of 5.73%, LMT is doing good in the industry, outperforming 63.38% of the companies in the same industry.
LMT's Profit Margin has declined in the last couple of years.
The Operating Margin of LMT (8.32%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LMT has declined.
The Gross Margin of LMT (8.25%) is worse than 80.28% of its industry peers.
In the last couple of years the Gross Margin of LMT has declined.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LMT is creating value.
Compared to 1 year ago, LMT has less shares outstanding
Compared to 5 years ago, LMT has less shares outstanding
The debt/assets ratio for LMT is higher compared to a year ago.
2.2 Solvency
LMT has an Altman-Z score of 3.15. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
LMT has a Altman-Z score of 3.15. This is comparable to the rest of the industry: LMT outperforms 46.48% of its industry peers.
LMT has a debt to FCF ratio of 4.83. This is a neutral value as LMT would need 4.83 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.83, LMT is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
A Debt/Equity ratio of 3.32 is on the high side and indicates that LMT has dependencies on debt financing.
LMT has a Debt to Equity ratio of 3.32. This is amonst the worse of the industry: LMT underperforms 85.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.46
WACC9.6%
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.
LMT's Current ratio of 1.13 is on the low side compared to the rest of the industry. LMT is outperformed by 81.69% of its industry peers.
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 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
LMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.55%.
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
The Earnings Per Share is expected to grow by 5.40% on average over the next years.
Based on estimates for the next years, LMT will show a small growth in Revenue. The Revenue will grow by 2.92% on average per year.
EPS Next Y-18.77%
EPS Next 2Y3.05%
EPS Next 3Y4.31%
EPS Next 5Y5.4%
Revenue Next Year4.59%
Revenue Next 2Y4.41%
Revenue Next 3Y4.2%
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
With a Price/Earnings ratio of 16.04, LMT is valued correctly.
95.77% of the companies in the same industry are more expensive than LMT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.07, LMT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.91, the valuation of LMT can be described as correct.
90.14% of the companies in the same industry are more expensive than LMT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LMT to the average of the S&P500 Index (34.08), we can say LMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 15.91 |
4.2 Price Multiples
LMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LMT is cheaper than 80.28% of the companies in the same industry.
LMT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LMT is cheaper than 88.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.8 | ||
| EV/EBITDA | 16.49 |
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)3.19
EPS Next 2Y3.05%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.03%, LMT has a reasonable but not impressive dividend return.
LMT's Dividend Yield is rather good when compared to the industry average which is at 1.37. LMT pays more dividend than 97.18% of the companies in the same industry.
LMT's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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.
LMT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
The dividend of LMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP74.05%
EPS Next 2Y3.05%
EPS Next 3Y4.31%
468.26
-1.65 (-0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-1.73%
Ins Owners0.05%
Ins Owner Change-5.67%
Market Cap109.32B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts72.31
Price Target542.21 (15.79%)
Short Float %1.12%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend12.91
Dividend Growth(5Y)7.21%
DP74.05%
Div Incr Years6
Div Non Decr Years6
Ex-Date
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)11.18%
PT rev (3m)8.65%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)1.88%
EPS NY rev (3m)-18.37%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 15.91 | ||
| P/S | 1.49 | ||
| P/FCF | 23.8 | ||
| P/OCF | 17.19 | ||
| P/B | 17.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.49 |
EPS(TTM)29.19
EY6.23%
EPS(NY)29.43
Fwd EY6.28%
FCF(TTM)19.67
FCFY4.2%
OCF(TTM)27.25
OCFY5.82%
SpS314.17
BVpS26.47
TBVpS-30.3
PEG (NY)N/A
PEG (5Y)3.19
Graham Number131.86
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 | 3.15 |
F-Score5
WACC9.6%
ROIC/WACC1.46
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-18.77%
EPS Next 2Y3.05%
EPS Next 3Y4.31%
EPS Next 5Y5.4%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%8.8%
Revenue Next Year4.59%
Revenue Next 2Y4.41%
Revenue Next 3Y4.2%
Revenue Next 5Y2.92%
EBIT growth 1Y-30.21%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year10.51%
EBIT Next 3Y10.44%
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.
What is the valuation status for LMT stock?
ChartMill assigns a valuation rating of 6 / 10 to LOCKHEED MARTIN CORP (LMT). This can be considered as Fairly Valued.
What is the profitability of LMT stock?
LOCKHEED MARTIN CORP (LMT) has a profitability rating of 6 / 10.
What is the financial health of LOCKHEED MARTIN CORP (LMT) stock?
The financial health rating of LOCKHEED MARTIN CORP (LMT) is 4 / 10.
How sustainable is the dividend of LOCKHEED MARTIN CORP (LMT) stock?
The dividend rating of LOCKHEED MARTIN CORP (LMT) is 6 / 10 and the dividend payout ratio is 74.05%.