LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LMT - US5398301094 - Common Stock
590.82 USD
-3.09 (-0.52%)
591 USD
+0.18 (+0.03%)
We assign a fundamental rating of 5 out of 10 to LMT. LMT was compared to 73 industry peers in the Aerospace & Defense industry. LMT has only an average score on both its financial health and profitability. LMT has a decent growth rate and is not valued too expensively.
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.
- In the past 5 years LMT always reported a positive cash flow from operatings.
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's Return On Equity of 67.95% is amongst the best of the industry. LMT outperforms 100.00% of its industry peers.
- LMT has a better Return On Invested Capital (14.02%) than 91.78% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LMT is significantly above the industry average of 8.56%.
- 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
- The Profit Margin of LMT (5.73%) is better than 60.27% of its industry peers.
- 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.
- LMT's Gross Margin of 8.25% is on the low side compared to the rest of the industry. LMT is outperformed by 79.45% 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LMT is creating value.
- Compared to 1 year ago, LMT has less shares outstanding
- 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 3.46 indicates that LMT is not in any danger for bankruptcy at the moment.
- LMT's Altman-Z score of 3.46 is in line compared to the rest of the industry. LMT outperforms 46.58% 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.
- LMT has a better Debt to FCF ratio (4.83) than 73.97% 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 has a worse Debt to Equity ratio (3.32) than 84.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.46 |
ROIC/WACC1.44
WACC9.74%
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 83.56% of its industry peers.
- A Quick Ratio of 0.97 indicates that LMT may have some problems paying its short term obligations.
- With a Quick ratio value of 0.97, LMT is not doing good in the industry: 73.97% of the companies in the same industry are doing better.
| 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.
- LMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.03% yearly.
- The Revenue has been growing slightly by 2.88% in the past year.
- 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 4.82% 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 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 2Y4.44%
Revenue Next 3Y4.27%
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.
- 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
- LMT is valuated rather expensively with a Price/Earnings ratio of 20.24.
- 97.26% of the companies in the same industry are more expensive than LMT, based on the Price/Earnings ratio.
- LMT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 19.99, the valuation of LMT can be described as rather expensive.
- LMT's Price/Forward Earnings ratio is rather cheap when compared to the industry. LMT is cheaper than 95.89% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. LMT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 19.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LMT is valued a bit cheaper than the industry average as 78.08% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 91.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.77 | ||
| EV/EBITDA | 20.05 |
4.3 Compensation for Growth
- The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.02
EPS Next 2Y3.27%
EPS Next 3Y4.58%
5. Dividend
5.1 Amount
- LMT has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.34, LMT pays a better dividend. On top of this LMT pays more dividend than 98.63% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, LMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
- The dividend of LMT is nicely growing with an annual growth rate of 7.21%!
- 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)7.21%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- LMT pays out 74.05% of its income as dividend. 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%
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 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 decline by -19.09% in the next year.