LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - NYSE:LMT - US5398301094 - Common Stock
473.62 USD
+0.5 (+0.11%)
473 USD
-0.62 (-0.13%)
Taking everything into account, LMT scores 5 out of 10 in our fundamental rating. LMT was compared to 69 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of LMT while its profitability can be described as average. 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.
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
LMT has a Return On Assets of 7.14%. This is in the better half of the industry: LMT outperforms 79.71% of its industry peers.
With an excellent Return On Equity value of 78.82%, LMT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.80%, LMT belongs to the best of the industry, outperforming 95.65% 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 8.29%.
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 better Profit Margin (5.85%) than 65.22% of its industry peers.
LMT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.30%, LMT perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
LMT's Operating Margin has declined in the last couple of years.
LMT has a worse Gross Margin (8.25%) than 79.71% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LMT is creating value.
LMT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LMT has less shares outstanding
The debt/assets ratio for LMT is higher compared to a year ago.
2.2 Solvency
LMT has an Altman-Z score of 3.10. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
LMT has a Altman-Z score of 3.10. This is comparable to the rest of the industry: LMT outperforms 44.93% of its industry peers.
The Debt to FCF ratio of LMT is 6.50, which is on the high side as it means it would take LMT, 6.50 years of fcf income to pay off all of its debts.
LMT has a Debt to FCF ratio of 6.50. This is in the better half of the industry: LMT outperforms 66.67% of its industry peers.
LMT has a Debt/Equity ratio of 3.47. This is a high value indicating a heavy dependency on external financing.
LMT has a worse Debt to Equity ratio (3.47) than 85.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.47 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 3.1 |
ROIC/WACC1.54
WACC9.62%
2.3 Liquidity
A Current Ratio of 0.98 indicates that LMT may have some problems paying its short term obligations.
LMT's Current ratio of 0.98 is on the low side compared to the rest of the industry. LMT is outperformed by 86.96% of its industry peers.
LMT has a Quick Ratio of 0.98. This is a bad value and indicates that LMT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LMT (0.83) is worse than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
LMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.27%.
The Earnings Per Share has been growing slightly by 5.03% on average over the past years.
The Revenue has been growing slightly by 1.09% in the past 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)4.27%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%6.42%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%0.18%
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.
Based on estimates for the next years, LMT will show a small growth in Revenue. The Revenue will grow by 3.23% on average per year.
EPS Next Y-18.31%
EPS Next 2Y3.09%
EPS Next 3Y4.59%
EPS Next 5Y5.66%
Revenue Next Year4.22%
Revenue Next 2Y4.11%
Revenue Next 3Y3.95%
Revenue Next 5Y3.23%
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
With a Price/Earnings ratio of 16.31, LMT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 95.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, LMT is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.08 indicates a correct valuation of LMT.
Based on the Price/Forward Earnings ratio, LMT is valued cheaply inside the industry as 88.41% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LMT to the average of the S&P500 Index (22.88), we can say LMT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 16.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LMT indicates a somewhat cheap valuation: LMT is cheaper than 73.91% of the companies listed 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 81.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.22 | ||
| EV/EBITDA | 17.19 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.24
EPS Next 2Y3.09%
EPS Next 3Y4.59%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.47, LMT pays a better dividend. On top of this LMT pays more dividend than 98.55% of the companies listed in the same industry.
LMT's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
On average, the dividend of LMT grows each year by 7.21%, which is quite nice.
LMT has paid a dividend for at least 10 years, which is 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
73.60% 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.
DP73.6%
EPS Next 2Y3.09%
EPS Next 3Y4.59%
473.62
+0.5 (+0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.34%
Inst Owner Change-1.33%
Ins Owners0.05%
Ins Owner Change0%
Market Cap110.58B
Analysts71.85
Price Target489.91 (3.44%)
Short Float %0.9%
Short Ratio1.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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)-1.83%
PT rev (3m)-9.21%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)-17.91%
EPS NY rev (3m)-18.19%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 16.08 | ||
| P/S | 1.54 | ||
| P/FCF | 33.22 | ||
| P/OCF | 21.81 | ||
| P/B | 20.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.19 |
EPS(TTM)29.04
EY6.13%
EPS(NY)29.45
Fwd EY6.22%
FCF(TTM)14.26
FCFY3.01%
OCF(TTM)21.72
OCFY4.59%
SpS307.72
BVpS22.85
TBVpS-34.21
PEG (NY)N/A
PEG (5Y)3.24
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%
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 Turnover1.22
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 | 3.1 |
F-Score5
WACC9.62%
ROIC/WACC1.54
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)4.27%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%6.42%
EPS Next Y-18.31%
EPS Next 2Y3.09%
EPS Next 3Y4.59%
EPS Next 5Y5.66%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%0.18%
Revenue Next Year4.22%
Revenue Next 2Y4.11%
Revenue Next 3Y3.95%
Revenue Next 5Y3.23%
EBIT growth 1Y-31.04%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year9.04%
EBIT Next 3Y10.25%
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%