LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:LMT • US5398301094

634.22 USD
+11.71 (+1.88%)
At close: Jan 30, 2026
633.5 USD
-0.72 (-0.11%)
After Hours: 1/30/2026, 7:22:53 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to LMT. LMT was compared to 73 industry peers in the Aerospace & Defense industry. LMT has an average financial health and profitability rating. LMT is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

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 4 of the past 5 years.
  • LMT had a positive operating cash flow in 4 of the past 5 years.
LMT Yearly Net Income VS EBIT VS OCF VS FCFLMT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.97%, LMT is in the better half of the industry, outperforming 76.71% of the companies in the same industry.
  • 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.
  • LMT has a Return On Invested Capital of 14.02%. This is amongst the best in the industry. LMT outperforms 91.78% 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 8.55%.
  • 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 RankSector 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%
LMT Yearly ROA, ROE, ROICLMT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 200 -200 300

1.3 Margins

  • LMT has a better Profit Margin (5.73%) than 60.27% of its industry peers.
  • In the last couple of years the Profit Margin of LMT has declined.
  • LMT has a Operating Margin (8.32%) which is in line with its industry peers.
  • LMT's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 8.25%, LMT is not doing good in the industry: 78.08% of the companies in the same industry are doing better.
  • LMT's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
LMT Yearly Profit, Operating, Gross MarginsLMT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10

More info and screens

4

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.
  • There is no outstanding debt for LMT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
LMT Yearly Shares OutstandingLMT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
LMT Yearly Total Debt VS Total AssetsLMT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 3.53 indicates that LMT is not in any danger for bankruptcy at the moment.
  • With a Altman-Z score value of 3.53, LMT perfoms like the industry average, outperforming 46.58% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of LMT (4.83) is better than 72.60% 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.
  • LMT has a Debt to Equity ratio of 3.32. This is amonst the worse of the industry: LMT underperforms 84.93% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.32
Debt/FCF 4.83
Altman-Z 3.53
ROIC/WACC1.4
WACC10.02%
LMT Yearly LT Debt VS Equity VS FCFLMT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.13 indicates that LMT should not have too much problems paying its short term obligations.
  • The Current ratio of LMT (1.13) is worse than 83.56% 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.
  • Looking at the Quick ratio, with a value of 0.97, LMT is doing worse than 73.97% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 0.97
LMT Yearly Current Assets VS Current LiabilitesLMT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

More info and screens

2

3. Growth

3.1 Past

  • LMT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.41%.
  • The Earnings Per Share has been growing slightly by 1.86% on average over the past years.
EPS 1Y (TTM)-1.41%
EPS 3Y7.96%
EPS 5Y1.86%
EPS Q2Q%-24.38%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.12%

3.2 Future

  • The Earnings Per Share is expected to grow by 6.61% on average over the next years.
  • LMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.58% yearly.
EPS Next Y8.23%
EPS Next 2Y7.59%
EPS Next 3Y7.19%
EPS Next 5Y6.61%
Revenue Next Year4.36%
Revenue Next 2Y4.26%
Revenue Next 3Y3.21%
Revenue Next 5Y1.58%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
LMT Yearly Revenue VS EstimatesLMT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B 80B
LMT Yearly EPS VS EstimatesLMT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

  • LMT is valuated rather expensively with a Price/Earnings ratio of 23.21.
  • LMT's Price/Earnings ratio is rather cheap when compared to the industry. LMT is cheaper than 93.15% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.30. LMT is around the same levels.
  • The Price/Forward Earnings ratio is 21.45, which indicates a rather expensive current valuation of LMT.
  • LMT's Price/Forward Earnings ratio is rather cheap when compared to the industry. LMT is cheaper than 91.78% of the companies in the same industry.
  • LMT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
Industry RankSector Rank
PE 23.21
Fwd PE 21.45
LMT Price Earnings VS Forward Price EarningsLMT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • LMT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LMT is cheaper than 73.97% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, LMT is valued cheaply inside the industry as 87.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 31.95
EV/EBITDA 20.9
LMT Per share dataLMT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200 300

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LMT does not grow enough to justify the current Price/Earnings ratio.
  • LMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)12.51
EPS Next 2Y7.59%
EPS Next 3Y7.19%

More info and screens

6

5. Dividend

5.1 Amount

  • LMT has a Yearly Dividend Yield of 2.22%. 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 0.34. LMT pays more dividend than 98.63% of the companies in the same industry.
  • LMT's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.22%

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.
  • 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
LMT Yearly Dividends per shareLMT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

5.3 Sustainability

  • LMT pays out 74.05% of its income as dividend. 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 2Y7.59%
EPS Next 3Y7.19%
LMT Yearly Income VS Free CF VS DividendLMT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
LMT Dividend Payout.LMT Dividend Payout, showing the Payout Ratio.LMT Dividend Payout.PayoutRetained Earnings

More info and screens

LOCKHEED MARTIN CORP / LMT FAQ

Can you provide the ChartMill fundamental rating for LOCKHEED MARTIN CORP?

ChartMill assigns a fundamental rating of 4 / 10 to LMT.


Can you provide the valuation status for LOCKHEED MARTIN CORP?

ChartMill assigns a valuation rating of 5 / 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 grow by 8.23% in the next year.