LOCKHEED MARTIN CORP (LMT)
US5398301094 - Common Stock
We assign a fundamental rating of 6 out of 10 to LMT. LMT was compared to 64 industry peers in the Aerospace & Defense industry. LMT has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
In the past 5 years LMT has always been profitable.
LMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LMT has a better Return On Assets (12.02%) than 95.31% of its industry peers.
With an excellent Return On Equity value of 92.71%, LMT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of LMT (19.87%) is better than 98.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LMT is significantly above the industry average of 7.71%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of LMT (9.36%) is better than 75.00% of its industry peers.
LMT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.27%, LMT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
LMT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.22%, LMT is not doing good in the industry: 78.13% 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 | 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LMT is creating value.
LMT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LMT has been reduced compared to 5 years ago.
Compared to 1 year ago, LMT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.76 indicates that LMT is not in any danger for bankruptcy at the moment.
LMT's Altman-Z score of 3.76 is in line compared to the rest of the industry. LMT outperforms 59.38% of its industry peers.
LMT has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as LMT would need 2.97 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.97, LMT belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
A Debt/Equity ratio of 2.66 is on the high side and indicates that LMT has dependencies on debt financing.
With a Debt to Equity ratio value of 2.66, LMT is not doing good in the industry: 82.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 3.76 |
ROIC/WACC2.05
WACC9.68%
2.3 Liquidity
A Current Ratio of 1.30 indicates that LMT should not have too much problems paying its short term obligations.
The Current ratio of LMT (1.30) is worse than 70.31% of its industry peers.
A Quick Ratio of 1.12 indicates that LMT should not have too much problems paying its short term obligations.
LMT has a Quick ratio (1.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.01% over the past year.
The Earnings Per Share has been growing by 9.29% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.33% in the past year.
LMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.68% yearly.
EPS 1Y (TTM)2.01%
EPS 3Y3.77%
EPS 5Y9.29%
EPS Q2Q%1.04%
Revenue 1Y (TTM)5.33%
Revenue growth 3Y1.1%
Revenue growth 5Y4.68%
Sales Q2Q%1.34%
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 3.40% on average per year.
Based on estimates for the next years, LMT will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
EPS Next Y-3.31%
EPS Next 2Y0.84%
EPS Next 3Y2.54%
EPS Next 5Y3.4%
Revenue Next Year6.9%
Revenue Next 2Y5.4%
Revenue Next 3Y4.83%
Revenue Next 5Y3.85%
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 decreasing.
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
The Price/Earnings ratio is 17.42, which indicates a rather expensive current valuation of LMT.
Compared to the rest of the industry, the Price/Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 89.06% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. LMT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.18, LMT is valued on the expensive side.
LMT's Price/Forward Earnings ratio is rather cheap when compared to the industry. LMT is cheaper than 82.81% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, LMT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 17.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LMT is valued cheaper than 85.94% of the companies in the same industry.
98.44% 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 | 17.72 | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.88
EPS Next 2Y0.84%
EPS Next 3Y2.54%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.75%.
Compared to an average industry Dividend Yield of 1.46, LMT pays a better dividend. On top of this LMT pays more dividend than 95.31% of the companies listed in the same industry.
LMT's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
5.2 History
The dividend of LMT is nicely growing with an annual growth rate of 8.25%!
LMT has been paying a dividend for at least 10 years, so it has 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)8.25%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
45.66% of the earnings are spent on dividend by LMT. This is a bit on the high side, but may be sustainable.
The dividend of LMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.66%
EPS Next 2Y0.84%
EPS Next 3Y2.54%
LOCKHEED MARTIN CORP
NYSE:LMT (12/23/2024, 8:17:02 PM)
After market: 489 +2.51 (+0.52%)486.49
-2.53 (-0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners74.11%
Inst Owner Change0.88%
Ins Owners0.04%
Ins Owner Change-2.07%
Market Cap115.32B
Analysts73.57
Price Target616.72 (26.77%)
Short Float %1.01%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Dividend Growth(5Y)8.25%
DP45.66%
Div Incr Years6
Div Non Decr Years6
Ex-Date
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)2.69%
PT rev (3m)10.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.21%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 17.18 | ||
| P/S | 1.62 | ||
| P/FCF | 17.72 | ||
| P/OCF | 13.87 | ||
| P/B | 16.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.86 |
EPS(TTM)27.92
EY5.74%
EPS(NY)28.32
Fwd EY5.82%
FCF(TTM)27.45
FCFY5.64%
OCF(TTM)35.07
OCFY7.21%
SpS300.77
BVpS30.37
TBVpS-23.54
PEG (NY)N/A
PEG (5Y)1.88
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.76 |
F-Score5
WACC9.68%
ROIC/WACC2.05
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)2.01%
EPS 3Y3.77%
EPS 5Y9.29%
EPS Q2Q%1.04%
EPS Next Y-3.31%
EPS Next 2Y0.84%
EPS Next 3Y2.54%
EPS Next 5Y3.4%
Revenue 1Y (TTM)5.33%
Revenue growth 3Y1.1%
Revenue growth 5Y4.68%
Sales Q2Q%1.34%
Revenue Next Year6.9%
Revenue Next 2Y5.4%
Revenue Next 3Y4.83%
Revenue Next 5Y3.85%
EBIT growth 1Y1.65%
EBIT growth 3Y-0.43%
EBIT growth 5Y3.01%
EBIT Next Year14.96%
EBIT Next 3Y7.9%
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%