LOCKHEED MARTIN CORP (LMT)
US5398301094 - Common Stock
Overall LMT gets a fundamental rating of 6 out of 10. We evaluated LMT against 65 industry peers in the Aerospace & Defense industry. LMT scores excellent on profitability, but there are some minor concerns on its financial health. LMT is valued correctly, but it does not seem to be growing.
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.
In the past 5 years LMT has always been profitable.
Each year in the past 5 years LMT had a positive operating cash flow.
1.2 Ratios
LMT has a Return On Assets of 12.02%. This is amongst the best in the industry. LMT outperforms 95.38% of its industry peers.
The Return On Equity of LMT (92.71%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.87%, LMT belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
LMT had an Average Return On Invested Capital over the past 3 years of 20.32%. This is significantly above the industry average of 7.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.02% | ||
| ROE | 92.71% | ||
| ROIC | 19.87% |
ROA(3y)12.15%
ROA(5y)12.61%
ROE(3y)73.58%
ROE(5y)106.71%
ROIC(3y)20.32%
ROIC(5y)20.55%
1.3 Margins
The Profit Margin of LMT (9.36%) is better than 75.38% of its industry peers.
LMT's Profit Margin has improved in the last couple of years.
The Operating Margin of LMT (12.27%) is better than 81.54% of its industry peers.
In the last couple of years the Operating Margin of LMT has declined.
LMT has a worse Gross Margin (12.22%) than 76.92% of its industry peers.
In the last couple of years the Gross Margin of LMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.27% | ||
| PM (TTM) | 9.36% | ||
| GM | 12.22% |
OM growth 3Y-1.51%
OM growth 5Y-1.59%
PM growth 3Y-0.67%
PM growth 5Y1.76%
GM growth 3Y-1.5%
GM growth 5Y-1.72%
2. Health
2.1 Basic Checks
LMT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for LMT has been reduced compared to 1 year ago.
The number of shares outstanding for LMT has been reduced compared to 5 years ago.
LMT has a worse debt/assets ratio than last year.
2.2 Solvency
LMT has an Altman-Z score of 3.91. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
LMT's Altman-Z score of 3.91 is fine compared to the rest of the industry. LMT outperforms 61.54% of its industry peers.
LMT has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as LMT would need 2.97 years to pay back of all of its debts.
LMT has a Debt to FCF ratio of 2.97. This is amongst the best in the industry. LMT outperforms 84.62% of its industry peers.
A Debt/Equity ratio of 2.66 is on the high side and indicates that LMT has dependencies on debt financing.
The Debt to Equity ratio of LMT (2.66) is worse than 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 3.91 |
ROIC/WACC2.25
WACC8.84%
2.3 Liquidity
LMT has a Current Ratio of 1.30. 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 1.30 is on the low side compared to the rest of the industry. LMT is outperformed by 66.15% of its industry peers.
A Quick Ratio of 1.12 indicates that LMT should not have too much problems paying its short term obligations.
LMT has a Quick ratio (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.01% over the past year.
The Earnings Per Share has been growing by 9.29% on average over the past years. This is quite good.
LMT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.33%.
Measured over the past years, LMT shows a small growth in Revenue. The Revenue has been growing by 4.68% on average per year.
EPS 1Y (TTM)2.01%
EPS 3Y3.77%
EPS 5Y9.29%
EPS Q2Q%1.04%
Revenue 1Y (TTM)5.33%
Revenue growth 3Y1.1%
Revenue growth 5Y4.68%
Sales Q2Q%1.34%
3.2 Future
The Earnings Per Share is expected to grow by 2.81% on average over the next years.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y-3.29%
EPS Next 2Y0.89%
EPS Next 3Y2.31%
EPS Next 5Y2.81%
Revenue Next Year6.9%
Revenue Next 2Y5.37%
Revenue Next 3Y4.77%
Revenue Next 5Y3.15%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.42, which indicates a rather expensive current valuation of LMT.
86.15% of the companies in the same industry are more expensive than LMT, based on the Price/Earnings ratio.
LMT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.20.
LMT is valuated rather expensively with a Price/Forward Earnings ratio of 19.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 83.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, LMT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.42 | ||
| Fwd PE | 19.13 |
4.2 Price Multiples
LMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LMT is cheaper than 83.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 96.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.75 | ||
| EV/EBITDA | 14.09 |
4.3 Compensation for Growth
LMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.09
EPS Next 2Y0.89%
EPS Next 3Y2.31%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.44%.
Compared to an average industry Dividend Yield of 1.36, LMT pays a better dividend. On top of this LMT pays more dividend than 95.38% of the companies listed in the same industry.
LMT's Dividend Yield is comparable with the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
On average, the dividend of LMT grows each year by 8.25%, which is quite nice.
LMT has paid a dividend for at least 10 years, which is 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)8.25%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
LMT pays out 45.66% of its income as dividend. This is a bit on the high side, but may be sustainable.
LMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.66%
EPS Next 2Y0.89%
EPS Next 3Y2.31%
LOCKHEED MARTIN CORP
NYSE:LMT (11/22/2024, 8:04:00 PM)
After market: 542.22 0 (0%)542.22
+0.21 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap128.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.42 | ||
| Fwd PE | 19.13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.02% | ||
| ROE | 92.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.27% | ||
| PM (TTM) | 9.36% | ||
| GM | 12.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.01%
EPS 3Y3.77%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.33%
Revenue growth 3Y1.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y