LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
NYSE:LMT - New York Stock Exchange, Inc. - US5398301094 - Common Stock - Currency: USD
Taking everything into account, LMT scores 5 out of 10 in our fundamental rating. LMT was compared to 65 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.
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 Return On Assets of 9.71%. This is amongst the best in the industry. LMT outperforms 93.85% of its industry peers.
LMT has a better Return On Equity (82.34%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 17.83%, LMT belongs to the best 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 18.86%. This is significantly above the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 82.34% | ||
| ROIC | 17.83% |
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
With a decent Profit Margin value of 7.66%, LMT is doing good in the industry, outperforming 70.77% of the companies in the same industry.
In the last couple of years the Profit Margin of LMT has declined.
LMT has a better Operating Margin (10.29%) than 70.77% of its industry peers.
In the last couple of years the Operating Margin of LMT has declined.
LMT's Gross Margin of 10.23% is on the low side compared to the rest of the industry. LMT is outperformed by 81.54% of its industry peers.
In the last couple of years the Gross Margin of LMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.29% | ||
| PM (TTM) | 7.66% | ||
| GM | 10.23% |
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.
Compared to 1 year ago, LMT has less shares outstanding
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
An Altman-Z score of 3.40 indicates that LMT is not in any danger for bankruptcy at the moment.
LMT has a Altman-Z score of 3.40. This is comparable to the rest of the industry: LMT outperforms 50.77% of its industry peers.
The Debt to FCF ratio of LMT is 4.07, which is a neutral value as it means it would take LMT, 4.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LMT (4.07) is better than 78.46% of its industry peers.
LMT has a Debt/Equity ratio of 2.79. This is a high value indicating a heavy dependency on external financing.
LMT has a worse Debt to Equity ratio (2.79) than 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.4 |
ROIC/WACC1.78
WACC9.99%
2.3 Liquidity
A Current Ratio of 1.08 indicates that LMT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, LMT is doing worse than 81.54% of the companies in the same industry.
LMT has a Quick Ratio of 1.08. This is a bad value and indicates that LMT is not financially healthy enough and could expect problems in meeting its short term obligations.
LMT's Quick ratio of 0.91 is on the low side compared to the rest of the industry. LMT is outperformed by 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.51% 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 3.12% in the past year.
The Revenue has been growing slightly by 3.50% on average over the past years.
EPS 1Y (TTM)3.51%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%13.93%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%4.47%
3.2 Future
LMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.65% yearly.
The Revenue is expected to grow by 3.22% on average over the next years.
EPS Next Y-0.1%
EPS Next 2Y4.4%
EPS Next 3Y5.33%
EPS Next 5Y5.65%
Revenue Next Year4.39%
Revenue Next 2Y4.05%
Revenue Next 3Y4%
Revenue Next 5Y3.22%
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 stable.
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
A Price/Earnings ratio of 16.17 indicates a correct valuation of LMT.
LMT's Price/Earnings ratio is rather cheap when compared to the industry. LMT is cheaper than 96.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of LMT to the average of the S&P500 Index (27.45), we can say LMT is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.32, which indicates a correct valuation of LMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 93.85% of the companies listed in the same industry.
LMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LMT is valued cheaper than 90.77% 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 93.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.74 | ||
| EV/EBITDA | 14.11 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.21
EPS Next 2Y4.4%
EPS Next 3Y5.33%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.88%.
LMT's Dividend Yield is rather good when compared to the industry average which is at 1.27. LMT pays more dividend than 96.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, LMT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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
55.88% of the earnings are spent on dividend by LMT. This is a bit on the high side, but may be sustainable.
The dividend of LMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.88%
EPS Next 2Y4.4%
EPS Next 3Y5.33%
462.52
-0.03 (-0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.05%
Inst Owner Change-1.18%
Ins Owners0.05%
Ins Owner Change12.01%
Market Cap108.37B
Analysts73.79
Price Target544.06 (17.63%)
Short Float %0.92%
Short Ratio1.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend12.91
Dividend Growth(5Y)7.21%
DP55.88%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.01%
Min EPS beat(2)13.78%
Max EPS beat(2)14.24%
EPS beat(4)4
Avg EPS beat(4)9.12%
Min EPS beat(4)3.56%
Max EPS beat(4)14.24%
EPS beat(8)7
Avg EPS beat(8)6.78%
EPS beat(12)8
Avg EPS beat(12)2.29%
EPS beat(16)12
Avg EPS beat(16)3.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-0.09%
Revenue beat(4)1
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)5.27%
Revenue beat(8)4
Avg Revenue beat(8)1.78%
Revenue beat(12)5
Avg Revenue beat(12)0.9%
Revenue beat(16)5
Avg Revenue beat(16)-0.15%
PT rev (1m)0.93%
PT rev (3m)-1.7%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 15.32 | ||
| P/S | 1.51 | ||
| P/FCF | 21.74 | ||
| P/OCF | 16.06 | ||
| P/B | 16.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.11 |
EPS(TTM)28.6
EY6.18%
EPS(NY)30.2
Fwd EY6.53%
FCF(TTM)21.28
FCFY4.6%
OCF(TTM)28.79
OCFY6.23%
SpS306.49
BVpS28.52
TBVpS-27.08
PEG (NY)N/A
PEG (5Y)3.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 82.34% | ||
| ROCE | 20.82% | ||
| ROIC | 17.83% | ||
| ROICexc | 18.78% | ||
| ROICexgc | 30.63% | ||
| OM | 10.29% | ||
| PM (TTM) | 7.66% | ||
| GM | 10.23% | ||
| FCFM | 6.94% |
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-Score6
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 4.07 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 109.72% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.02% | ||
| Profit Quality | 90.59% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.4 |
F-Score6
WACC9.99%
ROIC/WACC1.78
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)3.51%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%13.93%
EPS Next Y-0.1%
EPS Next 2Y4.4%
EPS Next 3Y5.33%
EPS Next 5Y5.65%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%4.47%
Revenue Next Year4.39%
Revenue Next 2Y4.05%
Revenue Next 3Y4%
Revenue Next 5Y3.22%
EBIT growth 1Y-13.61%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year25.67%
EBIT Next 3Y10.68%
EBIT Next 5Y7.62%
FCF growth 1Y-20.37%
FCF growth 3Y-11.77%
FCF growth 5Y-1.93%
OCF growth 1Y-15.21%
OCF growth 3Y-8.9%
OCF growth 5Y-0.95%