LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - NYSE:LMT - US5398301094 - Common Stock
457.04 USD
-0.03 (-0.01%)
457.25 USD
+0.21 (+0.05%)
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 only an average score on both its financial health and profitability. 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.
In the past year LMT had a positive cash flow from operations.
Each year in the past 5 years LMT has been profitable.
In the past 5 years LMT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LMT (6.97%) is better than 77.78% of its industry peers.
The Return On Equity of LMT (67.95%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.02%, LMT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 5.73%, LMT is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of LMT has declined.
The Gross Margin of LMT (8.25%) is worse than 80.56% 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.
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 3.12 indicates that LMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.12, LMT is in line with its industry, outperforming 45.83% of the companies in the same industry.
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.
The Debt to FCF ratio of LMT (4.83) is better 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.
The Debt to Equity ratio of LMT (3.32) is worse than 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.
With a Current ratio value of 1.13, LMT is not doing good in the industry: 81.94% of the companies in the same industry are doing better.
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 72.22% of the companies in the same industry.
| 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.
Looking at the last year, LMT shows a small growth in Revenue. The Revenue has grown by 2.88% in the last 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 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.
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 15.66, which indicates a correct valuation of LMT.
95.83% of the companies in the same industry are more expensive than LMT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LMT to the average of the S&P500 Index (26.34), we can say LMT is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.53, which indicates a correct valuation of LMT.
Based on the Price/Forward Earnings ratio, LMT is valued cheaply inside the industry as 90.28% of the companies are valued more expensively.
LMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 81.94% of the companies listed 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
The decent profitability rating of LMT 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
LMT has a Yearly Dividend Yield of 2.94%. 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 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
On average, the dividend of LMT grows each year by 7.21%, which is quite nice.
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.
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%.