LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LMT - US5398301094 - Common Stock
451.06 USD
-9.72 (-2.11%)
451.45 USD
+0.39 (+0.09%)
LMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of LMT get a neutral evaluation. Nothing too spectacular is happening here. LMT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
LMT had positive earnings in the past year.
In the past year LMT had a positive cash flow from operations.
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 has a Return On Assets of 6.97%. This is in the better half of the industry: LMT outperforms 77.46% of its industry peers.
With an excellent Return On Equity value of 67.95%, LMT belongs to the best 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 91.55% of its industry peers.
LMT had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 8.52%.
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 63.38% 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.
LMT has a Gross Margin of 8.25%. This is amonst the worse of the industry: LMT underperforms 80.28% 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.
LMT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LMT has less shares outstanding
LMT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.13 indicates that LMT is not in any danger for bankruptcy at the moment.
LMT has a Altman-Z score of 3.13. This is comparable to the rest of the industry: LMT outperforms 46.48% 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 Debt to FCF ratio of 4.83. This is in the better half of the industry: LMT outperforms 74.65% 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.
With a Debt to Equity ratio value of 3.32, LMT is not doing good in the industry: 85.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.13 |
ROIC/WACC1.39
WACC10.07%
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 has a worse Current ratio (1.13) than 81.69% 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: 71.83% 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.
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%.
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
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
LMT is valuated correctly with a Price/Earnings ratio of 15.45.
95.77% of the companies in the same industry are more expensive than LMT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.65, LMT is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.33, which indicates a correct valuation of LMT.
90.14% of the companies in the same industry are more expensive than LMT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, LMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 15.33 |
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 81.69% of the companies listed in the same industry.
LMT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LMT is cheaper than 91.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.93 | ||
| EV/EBITDA | 16.21 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.07
EPS Next 2Y3.05%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.95%. 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 1.15. LMT pays more dividend than 98.59% of the companies in the same industry.
LMT's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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.
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
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%
451.06
-9.72 (-2.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-1.76%
Ins Owners0.05%
Ins Owner Change-1.99%
Market Cap105.31B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts72.31
Price Target543.87 (20.58%)
Short Float %1.12%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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)11.52%
PT rev (3m)9.18%
EPS NQ rev (1m)-2.45%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)1.91%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 15.33 | ||
| P/S | 1.44 | ||
| P/FCF | 22.93 | ||
| P/OCF | 16.56 | ||
| P/B | 17.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.21 |
EPS(TTM)29.19
EY6.47%
EPS(NY)29.43
Fwd EY6.52%
FCF(TTM)19.67
FCFY4.36%
OCF(TTM)27.25
OCFY6.04%
SpS314.17
BVpS26.47
TBVpS-30.3
PEG (NY)N/A
PEG (5Y)3.07
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 | 3.13 |
F-Score5
WACC10.07%
ROIC/WACC1.39
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%.