LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - NYSE:LMT - US5398301094 - Common Stock
474.72 USD
+3.94 (+0.84%)
474.42 USD
-0.3 (-0.06%)
Overall LMT gets a fundamental rating of 5 out of 10. We evaluated LMT against 71 industry peers in the Aerospace & Defense industry. LMT has an average financial health and profitability rating. LMT has a correct valuation and a medium 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.
In the past 5 years LMT always reported a positive cash flow from operatings.
1.2 Ratios
LMT has a better Return On Assets (6.97%) than 77.46% of its industry peers.
LMT has a Return On Equity of 67.95%. This is amongst the best in the industry. LMT outperforms 100.00% of its industry peers.
LMT's Return On Invested Capital of 14.02% is amongst the best of the industry. LMT outperforms 91.55% of its industry peers.
LMT had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 8.46%.
The 3 year average ROIC (18.86%) for LMT is well above the current ROIC(14.02%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 67.95% | ||
| ROIC | 14.02% |
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 5.73%. This is in the better half of the industry: LMT outperforms 63.38% of its industry peers.
LMT's Profit Margin has declined in the last couple of years.
LMT's Operating Margin of 8.32% is in line compared to the rest of the industry. LMT outperforms 56.34% of its industry peers.
In the last couple of years the Operating Margin of LMT has declined.
LMT has a Gross Margin of 8.25%. This is amonst the worse of the industry: LMT underperforms 80.28% of its industry peers.
In the last couple of years the Gross Margin of LMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.32% | ||
| PM (TTM) | 5.73% | ||
| 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.
LMT has less shares outstanding than it did 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
An Altman-Z score of 3.17 indicates that LMT is not in any danger for bankruptcy at the moment.
The Altman-Z score of LMT (3.17) is comparable to the rest of the industry.
The Debt to FCF ratio of LMT is 4.83, which is a neutral value as it means it would take LMT, 4.83 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.83, LMT is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
LMT has a Debt/Equity ratio of 3.32. This is a high value indicating a heavy dependency on external financing.
LMT's Debt to Equity ratio of 3.32 is on the low side compared to the rest of the industry. LMT is outperformed by 85.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.46
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.13 indicates that LMT should not have too much problems paying its short term obligations.
LMT has a Current ratio of 1.13. This is amonst the worse of the industry: LMT underperforms 81.69% of its industry peers.
LMT has a Quick Ratio of 1.13. 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 has a worse Quick ratio (0.97) than 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.55% over the past year.
Measured over the past 5 years, LMT shows a small growth in Earnings Per Share. The EPS has been growing by 5.03% on average per year.
Looking at the last year, LMT shows a small growth in Revenue. The Revenue has grown by 2.88% in the last year.
Measured over the past years, LMT shows a small growth in Revenue. The Revenue has been growing by 3.50% on average per year.
EPS 1Y (TTM)4.55%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%2.21%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%8.8%
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 5.40% on average per year.
The Revenue is expected to grow by 2.92% on average over the next years.
EPS Next Y-18.77%
EPS Next 2Y3.05%
EPS Next 3Y4.31%
EPS Next 5Y5.4%
Revenue Next Year4.59%
Revenue Next 2Y4.41%
Revenue Next 3Y4.2%
Revenue Next 5Y2.92%
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
Based on the Price/Earnings ratio of 16.26, the valuation of LMT can be described as correct.
Based on the Price/Earnings ratio, LMT is valued cheaper than 92.96% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. LMT is valued slightly cheaper when compared to this.
LMT is valuated correctly with a Price/Forward Earnings ratio of 16.13.
88.73% of the companies in the same industry are more expensive than LMT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.98. LMT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LMT is valued a bit cheaper than 78.87% of the companies in the same industry.
90.14% 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 | 24.13 | ||
| EV/EBITDA | 16.63 |
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 2Y3.05%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 3.03%.
Compared to an average industry Dividend Yield of 1.37, LMT pays a better dividend. On top of this LMT pays more dividend than 97.18% of the companies listed in the same industry.
LMT's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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
LMT pays out 74.05% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP74.05%
EPS Next 2Y3.05%
EPS Next 3Y4.31%
474.72
+3.94 (+0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-1.73%
Ins Owners0.05%
Ins Owner Change-5.67%
Market Cap110.83B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts72.31
Price Target542.21 (14.22%)
Short Float %1.12%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend12.91
Dividend Growth(5Y)7.21%
DP74.05%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.11%
Min EPS beat(2)8.18%
Max EPS beat(2)12.03%
EPS beat(4)4
Avg EPS beat(4)12.06%
Min EPS beat(4)8.18%
Max EPS beat(4)14.24%
EPS beat(8)8
Avg EPS beat(8)9.1%
EPS beat(12)10
Avg EPS beat(12)6.81%
EPS beat(16)12
Avg EPS beat(16)3.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)-0.09%
Revenue beat(8)3
Avg Revenue beat(8)0.83%
Revenue beat(12)5
Avg Revenue beat(12)1.08%
Revenue beat(16)5
Avg Revenue beat(16)0.1%
PT rev (1m)11.18%
PT rev (3m)8.65%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)1.88%
EPS NY rev (3m)-18.37%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 16.13 | ||
| P/S | 1.51 | ||
| P/FCF | 24.13 | ||
| P/OCF | 17.42 | ||
| P/B | 17.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.63 |
EPS(TTM)29.19
EY6.15%
EPS(NY)29.43
Fwd EY6.2%
FCF(TTM)19.67
FCFY4.14%
OCF(TTM)27.25
OCFY5.74%
SpS314.17
BVpS26.47
TBVpS-30.3
PEG (NY)N/A
PEG (5Y)3.23
Graham Number131.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 67.95% | ||
| ROCE | 16.37% | ||
| ROIC | 14.02% | ||
| ROICexc | 15.45% | ||
| ROICexgc | 25.41% | ||
| OM | 8.32% | ||
| PM (TTM) | 5.73% | ||
| GM | 8.25% | ||
| FCFM | 6.26% |
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 | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Debt/EBITDA | 2.63 | ||
| Cap/Depr | 105.05% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.67% | ||
| Profit Quality | 109.36% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 3.17 |
F-Score5
WACC9.6%
ROIC/WACC1.46
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-18.77%
EPS Next 2Y3.05%
EPS Next 3Y4.31%
EPS Next 5Y5.4%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%8.8%
Revenue Next Year4.59%
Revenue Next 2Y4.41%
Revenue Next 3Y4.2%
Revenue Next 5Y2.92%
EBIT growth 1Y-30.21%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year10.51%
EBIT Next 3Y10.44%
EBIT Next 5Y7.61%
FCF growth 1Y-20.85%
FCF growth 3Y-11.77%
FCF growth 5Y-1.93%
OCF growth 1Y-14.99%
OCF growth 3Y-8.9%
OCF growth 5Y-0.95%
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.
What is the valuation status for LMT stock?
ChartMill assigns a valuation rating of 6 / 10 to LOCKHEED MARTIN CORP (LMT). This can be considered as Fairly Valued.
What is the profitability of LMT stock?
LOCKHEED MARTIN CORP (LMT) has a profitability rating of 6 / 10.
What is the financial health of LOCKHEED MARTIN CORP (LMT) stock?
The financial health rating of LOCKHEED MARTIN CORP (LMT) is 4 / 10.
How sustainable is the dividend of LOCKHEED MARTIN CORP (LMT) stock?
The dividend rating of LOCKHEED MARTIN CORP (LMT) is 6 / 10 and the dividend payout ratio is 74.05%.