LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LMT • US5398301094
636 USD
+1.78 (+0.28%)
At close: Feb 2, 2026
638.3 USD
+2.3 (+0.36%)
After Hours: 2/2/2026, 6:08:05 PM
Taking everything into account, LMT scores 5 out of 10 in our fundamental rating. LMT was compared to 72 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- LMT had positive earnings in the past year.
- 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
- LMT has a Return On Assets of 8.38%. This is amongst the best in the industry. LMT outperforms 88.89% of its industry peers.
- Looking at the Return On Equity, with a value of 74.65%, LMT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Invested Capital of LMT (18.14%) is better than 97.22% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LMT is significantly above the industry average of 8.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.38% | ||
| ROE | 74.65% | ||
| ROIC | 18.14% |
ROA(3y)10.39%
ROA(5y)10.88%
ROE(3y)86.72%
ROE(5y)75.93%
ROIC(3y)18.43%
ROIC(5y)19.09%
1.3 Margins
- LMT has a better Profit Margin (6.69%) than 65.28% of its industry peers.
- In the last couple of years the Profit Margin of LMT has declined.
- Looking at the Operating Margin, with a value of 10.35%, LMT is in the better half of the industry, outperforming 65.28% 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 10.24%. This is in the lower half of the industry: LMT underperforms 76.39% of its industry peers.
- LMT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.35% | ||
| PM (TTM) | 6.69% | ||
| GM | 10.24% |
OM growth 3Y-6.42%
OM growth 5Y-4.83%
PM growth 3Y-8.36%
PM growth 5Y-8.54%
GM growth 3Y-6.95%
GM growth 5Y-5.06%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LMT is still creating some value.
- LMT has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, LMT has less shares outstanding
- Compared to 1 year ago, LMT has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.71 indicates that LMT is not in any danger for bankruptcy at the moment.
- LMT has a Altman-Z score (3.71) which is comparable to the rest of the industry.
- LMT has a debt to FCF ratio of 3.14. This is a good value and a sign of high solvency as LMT would need 3.14 years to pay back of all of its debts.
- LMT has a better Debt to FCF ratio (3.14) than 83.33% of its industry peers.
- A Debt/Equity ratio of 3.05 is on the high side and indicates that LMT has dependencies on debt financing.
- LMT has a worse Debt to Equity ratio (3.05) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.05 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 3.71 |
ROIC/WACC1.76
WACC10.28%
2.3 Liquidity
- LMT has a Current Ratio of 1.09. This is a normal value and indicates that LMT is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.09, LMT is doing worse than 84.72% of the companies in the same industry.
- A Quick Ratio of 0.94 indicates that LMT may have some problems paying its short term obligations.
- LMT has a worse Quick ratio (0.94) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
- The earnings per share for LMT have decreased by -1.41% in the last year.
- Measured over the past 5 years, LMT shows a small growth in Earnings Per Share. The EPS has been growing by 1.86% on average per year.
- LMT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.64%.
- LMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.79% yearly.
EPS 1Y (TTM)-1.41%
EPS 3Y7.96%
EPS 5Y1.86%
EPS Q2Q%-24.38%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y4.38%
Revenue growth 5Y2.79%
Sales Q2Q%9.12%
3.2 Future
- Based on estimates for the next years, LMT will show a small growth in Earnings Per Share. The EPS will grow by 6.61% on average per year.
- The Revenue is expected to grow by 1.58% on average over the next years.
EPS Next Y8.23%
EPS Next 2Y7.59%
EPS Next 3Y7.19%
EPS Next 5Y6.61%
Revenue Next Year4.36%
Revenue Next 2Y4.26%
Revenue Next 3Y3.21%
Revenue Next 5Y1.58%
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 accelerating.
- 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
- With a Price/Earnings ratio of 23.28, LMT is valued on the expensive side.
- Based on the Price/Earnings ratio, LMT is valued cheaper than 91.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.41, LMT is valued at the same level.
- LMT is valuated rather expensively with a Price/Forward Earnings ratio of 21.51.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 91.67% of the companies listed in the same industry.
- LMT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 21.51 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LMT is valued cheaper than 83.33% of the companies in the same industry.
- 97.22% 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 | 21.3 | ||
| EV/EBITDA | 17.38 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LMT does not grow enough to justify the current Price/Earnings ratio.
- LMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)12.54
EPS Next 2Y7.59%
EPS Next 3Y7.19%
5. Dividend
5.1 Amount
- LMT has a Yearly Dividend Yield of 2.18%.
- Compared to an average industry Dividend Yield of 0.34, LMT pays a better dividend. On top of this LMT pays more dividend than 98.61% of the companies listed in the same industry.
- LMT's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
- On average, the dividend of LMT grows each year by 6.46%, 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)6.46%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- LMT pays out 62.41% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of LMT is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP62.41%
EPS Next 2Y7.59%
EPS Next 3Y7.19%
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 5 / 10.
What is the earnings growth outlook for LOCKHEED MARTIN CORP?
The Earnings per Share (EPS) of LOCKHEED MARTIN CORP (LMT) is expected to grow by 8.23% in the next year.