LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - NYSE:LMT - US5398301094 - Common Stock
485.54 USD
-3.96 (-0.81%)
LMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 industry peers in the Aerospace & Defense industry. While LMT is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past 5 years LMT has always been profitable.
LMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.14%, LMT is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
LMT's Return On Equity of 78.82% is amongst the best of the industry. LMT outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 14.80%, LMT belongs to the best of the industry, outperforming 95.71% 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 8.41%.
The 3 year average ROIC (18.86%) for LMT is well above the current ROIC(14.80%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 78.82% | ||
| ROIC | 14.8% |
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 Profit Margin of 5.85%. This is in the better half of the industry: LMT outperforms 64.29% of its industry peers.
In the last couple of years the Profit Margin of LMT has declined.
LMT has a Operating Margin (8.30%) which is in line with its industry peers.
In the last couple of years the Operating Margin of LMT has declined.
The Gross Margin of LMT (8.25%) is worse than 81.43% of its industry peers.
In the last couple of years the Gross Margin of LMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.3% | ||
| PM (TTM) | 5.85% | ||
| 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
LMT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LMT has less shares outstanding
LMT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LMT is higher compared to a year ago.
2.2 Solvency
LMT has an Altman-Z score of 3.14. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.14, LMT perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
LMT has a debt to FCF ratio of 6.50. This is a slightly negative value and a sign of low solvency as LMT would need 6.50 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.50, LMT is doing good in the industry, outperforming 67.14% of the companies in the same industry.
A Debt/Equity ratio of 3.47 is on the high side and indicates that LMT has dependencies on debt financing.
LMT's Debt to Equity ratio of 3.47 is on the low side compared to the rest of the industry. LMT is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.47 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 3.14 |
ROIC/WACC1.58
WACC9.35%
2.3 Liquidity
A Current Ratio of 0.98 indicates that LMT may have some problems paying its short term obligations.
LMT has a Current ratio of 0.98. This is amonst the worse of the industry: LMT underperforms 87.14% of its industry peers.
A Quick Ratio of 0.83 indicates that LMT may have some problems paying its short term obligations.
LMT's Quick ratio of 0.83 is on the low side compared to the rest of the industry. LMT is outperformed by 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.83 |
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 5.14% in the past year.
The Revenue has been growing slightly by 3.50% on average over the past years.
EPS 1Y (TTM)4.55%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%2.21%
Revenue 1Y (TTM)5.14%
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.
The Revenue is expected to grow by 3.23% on average over the next years.
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 16.63 indicates a correct valuation of LMT.
95.71% of the companies in the same industry are more expensive than LMT, based on the Price/Earnings ratio.
LMT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.55, which indicates a correct valuation of LMT.
Based on the Price/Forward Earnings ratio, LMT is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
LMT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
75.71% of the companies in the same industry are more expensive than LMT, based on the Enterprise Value to EBITDA ratio.
LMT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LMT is cheaper than 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.05 | ||
| EV/EBITDA | 17.69 |
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)3.31
EPS Next 2Y2.89%
EPS Next 3Y4.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.73%, LMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.16, LMT pays a better dividend. On top of this LMT pays more dividend than 98.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, LMT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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.
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 73.60% 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.
DP73.6%
EPS Next 2Y2.89%
EPS Next 3Y4.53%
NYSE:LMT (10/22/2025, 3:22:04 PM)
485.54
-3.96 (-0.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change0.02%
Ins Owners0.05%
Ins Owner Change0%
Market Cap113.36B
Revenue(TTM)71.04B
Net Income(TTM)4.20B
Analysts72.31
Price Target487.7 (0.44%)
Short Float %1.05%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
Yearly Dividend12.91
Dividend Growth(5Y)7.21%
DP73.6%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.9%
Min EPS beat(2)12.03%
Max EPS beat(2)13.78%
EPS beat(4)4
Avg EPS beat(4)10.9%
Min EPS beat(4)3.56%
Max EPS beat(4)14.24%
EPS beat(8)7
Avg EPS beat(8)8.07%
EPS beat(12)9
Avg EPS beat(12)6.11%
EPS beat(16)12
Avg EPS beat(16)3.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-0.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)-0.09%
Revenue beat(8)3
Avg Revenue beat(8)0.9%
Revenue beat(12)5
Avg Revenue beat(12)1.02%
Revenue beat(16)5
Avg Revenue beat(16)-0.32%
PT rev (1m)-0.45%
PT rev (3m)-9.72%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)-4.05%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)-19.87%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 16.55 | ||
| P/S | 1.58 | ||
| P/FCF | 34.05 | ||
| P/OCF | 22.35 | ||
| P/B | 21.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.69 |
EPS(TTM)29.19
EY6.01%
EPS(NY)29.33
Fwd EY6.04%
FCF(TTM)14.26
FCFY2.94%
OCF(TTM)21.72
OCFY4.47%
SpS307.72
BVpS22.85
TBVpS-34.21
PEG (NY)N/A
PEG (5Y)3.31
Graham Number122.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 78.82% | ||
| ROCE | 17.28% | ||
| ROIC | 14.8% | ||
| ROICexc | 15.38% | ||
| ROICexgc | 25.67% | ||
| OM | 8.3% | ||
| PM (TTM) | 5.85% | ||
| GM | 8.25% | ||
| FCFM | 4.63% |
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 | 3.47 | ||
| Debt/FCF | 6.5 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 105.9% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.63% | ||
| Profit Quality | 79.19% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.14 |
F-Score5
WACC9.35%
ROIC/WACC1.58
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)5.14%
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-31.04%
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-44.55%
FCF growth 3Y-11.77%
FCF growth 5Y-1.93%
OCF growth 1Y-34.36%
OCF growth 3Y-8.9%
OCF growth 5Y-0.95%