LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
NYSE:LMT - New York Stock Exchange, Inc. - US5398301094 - Common Stock - Currency: USD
Overall LMT gets a fundamental rating of 5 out of 10. We evaluated LMT against 65 industry peers in the Aerospace & Defense industry. While LMT belongs to the best of the industry regarding profitability, 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.
LMT had a positive operating cash flow in the past year.
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
LMT has a better Return On Assets (12.02%) than 93.65% of its industry peers.
LMT has a better Return On Equity (92.71%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 19.86%, LMT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LMT had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 7.97%.
The 3 year average ROIC (18.86%) for LMT is below the current ROIC(19.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.02% | ||
| ROE | 92.71% | ||
| ROIC | 19.86% |
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 (9.36%) than 71.43% of its industry peers.
LMT's Profit Margin has declined in the last couple of years.
The Operating Margin of LMT (12.27%) is better than 77.78% of its industry peers.
In the last couple of years the Operating Margin of LMT has declined.
Looking at the Gross Margin, with a value of 12.22%, LMT is doing worse than 79.37% of the companies in the same industry.
LMT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.27% | ||
| PM (TTM) | 9.36% | ||
| GM | 12.22% |
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
Compared to 1 year ago, LMT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.63 indicates that LMT is not in any danger for bankruptcy at the moment.
LMT has a Altman-Z score of 3.63. This is comparable to the rest of the industry: LMT outperforms 58.73% 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 better Debt to FCF ratio (2.97) than 82.54% of its industry peers.
LMT has a Debt/Equity ratio of 2.66. This is a high value indicating a heavy dependency on external financing.
LMT has a worse Debt to Equity ratio (2.66) than 84.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 3.63 |
ROIC/WACC2.16
WACC9.19%
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 73.02% of its industry peers.
LMT has a Quick Ratio of 1.12. 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 Quick ratio value of 1.12, LMT is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
LMT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.50%.
LMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.03% yearly.
LMT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.14%.
LMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.
EPS 1Y (TTM)-0.5%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%-2.66%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%-1.34%
3.2 Future
LMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.42% yearly.
LMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.11% yearly.
EPS Next Y-0.75%
EPS Next 2Y4.13%
EPS Next 3Y4.96%
EPS Next 5Y4.42%
Revenue Next Year4.35%
Revenue Next 2Y4.1%
Revenue Next 3Y3.93%
Revenue Next 5Y3.11%
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 16.25 indicates a correct valuation of LMT.
LMT's Price/Earnings ratio is rather cheap when compared to the industry. LMT is cheaper than 88.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.98, LMT is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.38, LMT is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 88.89% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.66. LMT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
88.89% of the companies in the same industry are more expensive than LMT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LMT is valued cheaper than 98.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.29 | ||
| EV/EBITDA | 11.9 |
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)3.23
EPS Next 2Y4.13%
EPS Next 3Y4.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.96%, LMT has a reasonable but not impressive dividend return.
LMT's Dividend Yield is rather good when compared to the industry average which is at 1.44. LMT pays more dividend than 95.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, LMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of LMT is nicely growing with an annual growth rate of 7.21%!
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
45.66% of the earnings are spent on dividend by LMT. 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 2Y4.13%
EPS Next 3Y4.96%
450.37
+3.91 (+0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners74.93%
Inst Owner Change1.86%
Ins Owners0.04%
Ins Owner Change12.09%
Market Cap106.01B
Analysts73.57
Price Target554.6 (23.14%)
Short Float %1.3%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend12.91
Dividend Growth(5Y)7.21%
DP45.66%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.24%
Min EPS beat(2)3.56%
Max EPS beat(2)4.91%
EPS beat(4)4
Avg EPS beat(4)6.15%
Min EPS beat(4)3.56%
Max EPS beat(4)8.67%
EPS beat(8)6
Avg EPS beat(8)4.19%
EPS beat(12)8
Avg EPS beat(12)0.46%
EPS beat(16)11
Avg EPS beat(16)1.62%
Revenue beat(2)1
Avg Revenue beat(2)1.44%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)5.27%
Revenue beat(4)3
Avg Revenue beat(4)3.3%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)6.3%
Revenue beat(8)5
Avg Revenue beat(8)2.43%
Revenue beat(12)5
Avg Revenue beat(12)0.67%
Revenue beat(16)5
Avg Revenue beat(16)-0.09%
PT rev (1m)-2.63%
PT rev (3m)-9.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.55%
EPS NY rev (1m)-2.49%
EPS NY rev (3m)-3.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 16.38 | ||
| P/S | 1.49 | ||
| P/FCF | 16.29 | ||
| P/OCF | 12.75 | ||
| P/B | 14.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.9 |
EPS(TTM)27.71
EY6.15%
EPS(NY)27.5
Fwd EY6.11%
FCF(TTM)27.64
FCFY6.14%
OCF(TTM)35.32
OCFY7.84%
SpS302.88
BVpS30.59
TBVpS-23.7
PEG (NY)N/A
PEG (5Y)3.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.02% | ||
| ROE | 92.71% | ||
| ROCE | 23.2% | ||
| ROIC | 19.86% | ||
| ROICexc | 21.68% | ||
| ROICexgc | 34.39% | ||
| OM | 12.27% | ||
| PM (TTM) | 9.36% | ||
| GM | 12.22% | ||
| FCFM | 9.13% |
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%
ROICexcg growth 3Y-7.66%
ROICexcg 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 Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 2.97 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 118.8% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.95% | ||
| Profit Quality | 97.48% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.63 |
F-Score5
WACC9.19%
ROIC/WACC2.16
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)-0.5%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%-2.66%
EPS Next Y-0.75%
EPS Next 2Y4.13%
EPS Next 3Y4.96%
EPS Next 5Y4.42%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%-1.34%
Revenue Next Year4.35%
Revenue Next 2Y4.1%
Revenue Next 3Y3.93%
Revenue Next 5Y3.11%
EBIT growth 1Y1.65%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year24.35%
EBIT Next 3Y10.65%
EBIT Next 5Y8.51%
FCF growth 1Y12.13%
FCF growth 3Y-11.77%
FCF growth 5Y-1.93%
OCF growth 1Y11.11%
OCF growth 3Y-8.9%
OCF growth 5Y-0.95%