LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - NYSE:LMT - US5398301094 - Common Stock
458.35 USD
-10.57 (-2.25%)
459.748 USD
+1.4 (+0.31%)
Overall LMT gets a fundamental rating of 5 out of 10. We evaluated LMT against 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LMT was profitable.
LMT had a positive operating cash flow in the past year.
LMT had positive earnings in each of the past 5 years.
LMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LMT has a better Return On Assets (6.97%) than 78.08% of its industry peers.
LMT's Return On Equity of 67.95% is amongst the best of the industry. LMT outperforms 100.00% of its industry peers.
LMT has a Return On Invested Capital of 14.02%. This is amongst the best in the industry. LMT outperforms 91.78% 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 8.49%.
The last Return On Invested Capital (14.02%) for LMT is well below the 3 year average (18.86%), which needs to be investigated, but indicates that LMT had better years and this may not be a problem.
| 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
With a decent Profit Margin value of 5.73%, LMT is doing good in the industry, outperforming 64.38% of the companies in the same industry.
In the last couple of years the Profit Margin of LMT has declined.
LMT has a Operating Margin (8.32%) which is in line with its industry peers.
LMT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 8.25%, LMT is not doing good in the industry: 80.82% of the companies in the same industry are doing better.
LMT's Gross Margin has declined in the last couple of years.
| 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
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
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 3.12. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.12, LMT is in line with its industry, outperforming 43.84% of the companies in the same industry.
LMT has a debt to FCF ratio of 4.83. This is a neutral value as LMT would need 4.83 years to pay back of all of its debts.
The Debt to FCF ratio of LMT (4.83) is better than 72.60% of its industry peers.
LMT has a Debt/Equity ratio of 3.32. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.32, LMT is not doing good in the industry: 84.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.44
WACC9.73%
2.3 Liquidity
LMT has a Current Ratio of 1.13. This is a normal value and indicates that LMT is financially healthy and should not expect problems in meeting its short term obligations.
LMT has a worse Current ratio (1.13) than 82.19% of its industry peers.
A Quick Ratio of 0.97 indicates that LMT may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, LMT is not doing good in the industry: 71.23% of the companies in the same industry are doing better.
| 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.
LMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.
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
The Earnings Per Share is expected to grow by 5.40% on average over the next years.
Based on estimates for the next years, LMT will show a small growth in Revenue. The Revenue will grow by 2.92% on average per year.
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
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
LMT is valuated correctly with a Price/Earnings ratio of 15.70.
Based on the Price/Earnings ratio, LMT is valued cheaper than 95.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.06, LMT is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.58, LMT is valued correctly.
LMT's Price/Forward Earnings ratio is rather cheap when compared to the industry. LMT is cheaper than 90.41% of the companies in the same industry.
LMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 15.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LMT is valued cheaply inside the industry as 80.82% of the companies are valued more expensively.
89.04% 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 | 23.3 | ||
| EV/EBITDA | 16.14 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.12
EPS Next 2Y3.05%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.94%.
LMT's Dividend Yield is rather good when compared to the industry average which is at 1.12. LMT pays more dividend than 98.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, LMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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
74.05% of the earnings are spent on dividend by LMT. 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%
458.35
-10.57 (-2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-1.27%
Ins Owners0.05%
Ins Owner Change-1.99%
Market Cap107.01B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts72.31
Price Target542.21 (18.3%)
Short Float %1.05%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)-2.93%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)1.88%
EPS NY rev (3m)-18.37%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 15.58 | ||
| P/S | 1.46 | ||
| P/FCF | 23.3 | ||
| P/OCF | 16.82 | ||
| P/B | 17.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.14 |
EPS(TTM)29.19
EY6.37%
EPS(NY)29.43
Fwd EY6.42%
FCF(TTM)19.67
FCFY4.29%
OCF(TTM)27.25
OCFY5.94%
SpS314.17
BVpS26.47
TBVpS-30.3
PEG (NY)N/A
PEG (5Y)3.12
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 | 3.12 |
F-Score5
WACC9.73%
ROIC/WACC1.44
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%.