LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - NYSE:LMT - US5398301094 - Common Stock
461.59 USD
-7.33 (-1.56%)
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
In the past year LMT was profitable.
In the past year LMT had a positive cash flow from operations.
LMT had positive earnings in each of the past 5 years.
Each year in the past 5 years LMT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LMT (6.97%) is better than 77.46% of its industry peers.
Looking at the Return On Equity, with a value of 67.95%, LMT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.02%, LMT belongs to the best of the industry, outperforming 91.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LMT is significantly above the industry average of 8.48%.
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
LMT has a better Profit Margin (5.73%) than 63.38% of its industry peers.
LMT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.32%, LMT perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
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 81.69% of its industry peers.
LMT's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for LMT has been reduced compared to 1 year ago.
Compared to 5 years ago, LMT has less shares outstanding
The debt/assets ratio for LMT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.15 indicates that LMT is not in any danger for bankruptcy at the moment.
LMT's Altman-Z score of 3.15 is in line compared to the rest of the industry. LMT outperforms 42.25% 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.
With a decent Debt to FCF ratio value of 4.83, LMT is doing good in the industry, outperforming 73.24% of the companies in the same industry.
A Debt/Equity ratio of 3.32 is on the high side and indicates that LMT has dependencies on debt financing.
LMT has a Debt to Equity ratio of 3.32. This is amonst the worse of the industry: LMT underperforms 85.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.47
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.13 indicates that LMT should not have too much problems paying its short term obligations.
LMT has a worse Current ratio (1.13) than 83.10% 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.
The Quick ratio of LMT (0.97) is worse than 73.24% of its industry peers.
| 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.
Measured over the past years, LMT shows a small growth in Revenue. The Revenue has been growing by 3.50% on average per year.
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 5.66% yearly.
Based on estimates for the next years, LMT will show a small growth in Revenue. The Revenue will grow by 3.23% on average per year.
EPS Next Y-20.29%
EPS Next 2Y2.89%
EPS Next 3Y4.53%
EPS Next 5Y5.66%
Revenue Next Year4.25%
Revenue Next 2Y4.1%
Revenue Next 3Y3.94%
Revenue Next 5Y3.23%
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
A Price/Earnings ratio of 15.81 indicates a correct valuation of LMT.
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 25.67, LMT is valued a bit cheaper.
LMT is valuated correctly with a Price/Forward Earnings ratio of 15.74.
Based on the Price/Forward Earnings ratio, LMT is valued cheaper than 90.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LMT to the average of the S&P500 Index (31.86), we can say LMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 15.74 |
4.2 Price Multiples
78.87% of the companies in the same industry are more expensive than LMT, based on the Enterprise Value to EBITDA ratio.
90.14% 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 | 23.46 | ||
| EV/EBITDA | 16.46 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.14
EPS Next 2Y2.89%
EPS Next 3Y4.53%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.11, LMT pays a better dividend. On top of this LMT pays more dividend than 98.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, LMT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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.
LMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP74.05%
EPS Next 2Y2.89%
EPS Next 3Y4.53%
NYSE:LMT (11/7/2025, 10:27:05 AM)
461.59
-7.33 (-1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-0.72%
Ins Owners0.05%
Ins Owner Change-1.99%
Market Cap107.77B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts72.31
Price Target542.21 (17.47%)
Short Float %1.05%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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)10.67%
PT rev (3m)0.37%
EPS NQ rev (1m)-2.87%
EPS NQ rev (3m)-3.11%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-19.9%
Revenue NQ rev (1m)1.03%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 15.74 | ||
| P/S | 1.47 | ||
| P/FCF | 23.46 | ||
| P/OCF | 16.94 | ||
| P/B | 17.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.46 |
EPS(TTM)29.19
EY6.32%
EPS(NY)29.33
Fwd EY6.35%
FCF(TTM)19.67
FCFY4.26%
OCF(TTM)27.25
OCFY5.9%
SpS314.17
BVpS26.47
TBVpS-30.3
PEG (NY)N/A
PEG (5Y)3.14
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 | 3.15 |
F-Score5
WACC9.51%
ROIC/WACC1.47
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-20.29%
EPS Next 2Y2.89%
EPS Next 3Y4.53%
EPS Next 5Y5.66%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%8.8%
Revenue Next Year4.25%
Revenue Next 2Y4.1%
Revenue Next 3Y3.94%
Revenue Next 5Y3.23%
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 5Y7.54%
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 5 / 10 and the dividend payout ratio is 74.05%.