LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - NYSE:LMT - US5398301094 - Common Stock
457.04 USD
-0.03 (-0.01%)
459 USD
+1.96 (+0.43%)
Overall LMT gets a fundamental rating of 5 out of 10. We evaluated LMT against 72 industry peers in the Aerospace & Defense industry. LMT has an average financial health and profitability rating. LMT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LMT was profitable.
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's Return On Assets of 6.97% is fine compared to the rest of the industry. LMT outperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 67.95%, LMT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LMT's Return On Invested Capital of 14.02% is amongst the best of the industry. LMT outperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LMT is significantly above the industry average of 8.47%.
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 fine compared to the rest of the industry. LMT outperforms 63.89% of its industry peers.
In the last couple of years the Profit Margin of LMT has declined.
Looking at the Operating Margin, with a value of 8.32%, LMT is in line with its industry, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Operating Margin of LMT has declined.
With a Gross Margin value of 8.25%, LMT is not doing good in the industry: 80.56% of the companies in the same industry are doing better.
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.
LMT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LMT has less shares outstanding
Compared to 1 year ago, LMT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.12 indicates that LMT is not in any danger for bankruptcy at the moment.
LMT's Altman-Z score of 3.12 is in line compared to the rest of the industry. LMT outperforms 45.83% of its industry peers.
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 72.22% of its industry peers.
A Debt/Equity ratio of 3.32 is on the high side and indicates that LMT has dependencies on debt financing.
LMT's Debt to Equity ratio of 3.32 is on the low side compared to the rest of the industry. LMT is outperformed by 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.44
WACC9.75%
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 81.94% 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.
LMT's Quick ratio of 0.97 is on the low side compared to the rest of the industry. LMT is outperformed by 72.22% 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.
Measured over the past 5 years, LMT shows a small growth in Earnings Per Share. The EPS has been growing by 5.03% on average per year.
LMT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.88%.
Measured over the past years, LMT shows a small growth in Revenue. The Revenue has been growing by 3.50% on average per year.
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
LMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.40% yearly.
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-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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.66, the valuation of LMT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 95.83% of the companies listed in the same industry.
LMT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
LMT is valuated correctly with a Price/Forward Earnings ratio of 15.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 90.28% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LMT to the average of the S&P500 Index (34.43), we can say LMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LMT is valued cheaper than 81.94% of the companies in the same industry.
88.89% 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 | 23.23 | ||
| EV/EBITDA | 16.1 |
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)3.11
EPS Next 2Y3.05%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.94%, 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 1.12. LMT pays more dividend than 98.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, LMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of LMT is nicely growing with an annual growth rate of 7.21%!
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.
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%
457.04
-0.03 (-0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-1.27%
Ins Owners0.05%
Ins Owner Change-1.99%
Market Cap106.71B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts72.31
Price Target542.21 (18.64%)
Short Float %1.05%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)-2.93%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)1.88%
EPS NY rev (3m)-18.37%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 15.53 | ||
| P/S | 1.45 | ||
| P/FCF | 23.23 | ||
| P/OCF | 16.77 | ||
| P/B | 17.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.1 |
EPS(TTM)29.19
EY6.39%
EPS(NY)29.43
Fwd EY6.44%
FCF(TTM)19.67
FCFY4.3%
OCF(TTM)27.25
OCFY5.96%
SpS314.17
BVpS26.47
TBVpS-30.3
PEG (NY)N/A
PEG (5Y)3.11
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 | 3.12 |
F-Score5
WACC9.75%
ROIC/WACC1.44
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%.