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LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis

NYSE:LMT - New York Stock Exchange, Inc. - US5398301094 - Common Stock - Currency: USD

459.65  +5.29 (+1.16%)

After market: 460 +0.35 (+0.08%)

Fundamental Rating

5

LMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. While LMT has a great profitability rating, there are some minor concerns on its financial health. LMT has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

LMT had positive earnings in the past year.
In the past year LMT had a positive cash flow from operations.
LMT had positive earnings in 4 of the past 5 years.
Of the past 5 years LMT 4 years had a positive operating cash flow.
LMT Yearly Net Income VS EBIT VS OCF VS FCFLMT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

1.2 Ratios

LMT has a better Return On Assets (12.02%) than 95.31% of its industry peers.
Looking at the Return On Equity, with a value of 92.71%, LMT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LMT has a Return On Invested Capital of 19.87%. This is amongst the best in the industry. LMT outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LMT is significantly above the industry average of 7.62%.
Industry RankSector Rank
ROA 12.02%
ROE 92.71%
ROIC 19.87%
ROA(3y)12.15%
ROA(5y)12.61%
ROE(3y)73.58%
ROE(5y)106.71%
ROIC(3y)20.32%
ROIC(5y)20.55%
LMT Yearly ROA, ROE, ROICLMT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200 -200 300

1.3 Margins

LMT has a better Profit Margin (9.36%) than 75.00% of its industry peers.
LMT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.27%, LMT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
LMT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.22%, LMT is not doing good in the industry: 79.69% of the companies in the same industry are doing better.
LMT's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 12.27%
PM (TTM) 9.36%
GM 12.22%
OM growth 3Y-1.51%
OM growth 5Y-1.59%
PM growth 3Y-0.67%
PM growth 5Y1.76%
GM growth 3Y-1.5%
GM growth 5Y-1.72%
LMT Yearly Profit, Operating, Gross MarginsLMT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10

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5

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.
There is no outstanding debt for LMT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
LMT Yearly Shares OutstandingLMT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
LMT Yearly Total Debt VS Total AssetsLMT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.2 Solvency

LMT has an Altman-Z score of 3.65. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LMT (3.65) is comparable to the rest of the industry.
The Debt to FCF ratio of LMT is 2.97, which is a good value as it means it would take LMT, 2.97 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.97, LMT belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
A Debt/Equity ratio of 2.66 is on the high side and indicates that LMT has dependencies on debt financing.
LMT has a worse Debt to Equity ratio (2.66) than 82.81% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.66
Debt/FCF 2.97
Altman-Z 3.65
ROIC/WACC1.97
WACC10.06%
LMT Yearly LT Debt VS Equity VS FCFLMT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.30 indicates that LMT should not have too much problems paying its short term obligations.
The Current ratio of LMT (1.30) is worse than 71.88% of its industry peers.
LMT has a Quick Ratio of 1.12. 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 Quick ratio (1.12) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.3
Quick Ratio 1.12
LMT Yearly Current Assets VS Current LiabilitesLMT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

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2

3. Growth

3.1 Past

LMT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.50%.
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.
EPS 1Y (TTM)-0.5%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%-2.66%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.34%

3.2 Future

LMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.42% yearly.
The Revenue is expected to grow by 3.11% on average over the next years.
EPS Next Y1.78%
EPS Next 2Y4.21%
EPS Next 3Y4.76%
EPS Next 5Y4.42%
Revenue Next Year3.83%
Revenue Next 2Y3.78%
Revenue Next 3Y3.35%
Revenue Next 5Y3.11%

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.
LMT Yearly Revenue VS EstimatesLMT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20B 40B 60B 80B
LMT Yearly EPS VS EstimatesLMT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10 20 30

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 16.59, the valuation of LMT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 89.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.51, LMT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.30, the valuation of LMT can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 85.94% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, LMT is valued rather cheaply.
Industry RankSector Rank
PE 16.59
Fwd PE 16.3
LMT Price Earnings VS Forward Price EarningsLMT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 200 400 600 800

4.2 Price Multiples

90.63% of the companies in the same industry are more expensive than LMT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.74
EV/EBITDA 12.06
LMT Per share dataLMT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200 300

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.32
PEG (5Y)3.3
EPS Next 2Y4.21%
EPS Next 3Y4.76%

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6

5. Dividend

5.1 Amount

LMT has a Yearly Dividend Yield of 2.89%.
LMT's Dividend Yield is rather good when compared to the industry average which is at 1.36. LMT pays more dividend than 96.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, LMT pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.89%

5.2 History

On average, the dividend of LMT grows each year by 8.25%, which is quite nice.
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)8.25%
Div Incr Years6
Div Non Decr Years6
LMT Yearly Dividends per shareLMT Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

5.3 Sustainability

LMT pays out 45.66% of its income as dividend. This is a bit on the high side, but may be sustainable.
LMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.66%
EPS Next 2Y4.21%
EPS Next 3Y4.76%
LMT Yearly Income VS Free CF VS DividendLMT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B
LMT Dividend Payout.LMT Dividend Payout, showing the Payout Ratio.LMT Dividend Payout.PayoutRetained Earnings

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LOCKHEED MARTIN CORP

NYSE:LMT (1/30/2025, 5:15:36 PM)

After market: 460 +0.35 (+0.08%)

459.65

+5.29 (+1.16%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-28 2025-01-28/bmo
Earnings (Next)N/A N/A
Inst Owners74.11%
Inst Owner Change-0.84%
Ins Owners0.04%
Ins Owner Change-0.89%
Market Cap108.96B
Analysts73.57
Price Target569.56 (23.91%)
Short Float %1.27%
Short Ratio2.39
Dividend
Industry RankSector Rank
Dividend Yield 2.89%
Yearly Dividend12.35
Dividend Growth(5Y)8.25%
DP45.66%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.24%
Min EPS beat(2)3.56%
Max EPS beat(2)4.91%
EPS beat(4)4
Avg EPS beat(4)6.15%
Min EPS beat(4)3.56%
Max EPS beat(4)8.67%
EPS beat(8)6
Avg EPS beat(8)4.19%
EPS beat(12)8
Avg EPS beat(12)0.46%
EPS beat(16)11
Avg EPS beat(16)1.62%
Revenue beat(2)1
Avg Revenue beat(2)1.44%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)5.27%
Revenue beat(4)3
Avg Revenue beat(4)3.3%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)6.3%
Revenue beat(8)5
Avg Revenue beat(8)2.43%
Revenue beat(12)5
Avg Revenue beat(12)0.67%
Revenue beat(16)5
Avg Revenue beat(16)-0.09%
PT rev (1m)-1.55%
PT rev (3m)1.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.99%
EPS NY rev (1m)0%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.24%
Valuation
Industry RankSector Rank
PE 16.59
Fwd PE 16.3
P/S 1.53
P/FCF 16.74
P/OCF 13.11
P/B 15.13
P/tB N/A
EV/EBITDA 12.06
EPS(TTM)27.71
EY6.03%
EPS(NY)28.2
Fwd EY6.14%
FCF(TTM)27.45
FCFY5.97%
OCF(TTM)35.07
OCFY7.63%
SpS300.77
BVpS30.37
TBVpS-23.54
PEG (NY)9.32
PEG (5Y)3.3
Profitability
Industry RankSector Rank
ROA 12.02%
ROE 92.71%
ROCE 23.2%
ROIC 19.87%
ROICexc 21.68%
ROICexgc 34.4%
OM 12.27%
PM (TTM) 9.36%
GM 12.22%
FCFM 9.13%
ROA(3y)12.15%
ROA(5y)12.61%
ROE(3y)73.58%
ROE(5y)106.71%
ROIC(3y)20.32%
ROIC(5y)20.55%
ROICexc(3y)21.85%
ROICexc(5y)22.05%
ROICexgc(3y)37.78%
ROICexgc(5y)38.12%
ROCE(3y)23.73%
ROCE(5y)24%
ROICexcg growth 3Y-0.21%
ROICexcg growth 5Y-1.85%
ROICexc growth 3Y-0.88%
ROICexc growth 5Y0.22%
OM growth 3Y-1.51%
OM growth 5Y-1.59%
PM growth 3Y-0.67%
PM growth 5Y1.76%
GM growth 3Y-1.5%
GM growth 5Y-1.72%
F-Score5
Asset Turnover1.28
Health
Industry RankSector Rank
Debt/Equity 2.66
Debt/FCF 2.97
Debt/EBITDA 1.87
Cap/Depr 118.8%
Cap/Sales 2.53%
Interest Coverage 250
Cash Conversion 80.95%
Profit Quality 97.48%
Current Ratio 1.3
Quick Ratio 1.12
Altman-Z 3.65
F-Score5
WACC10.06%
ROIC/WACC1.97
Cap/Depr(3y)116.26%
Cap/Depr(5y)122.1%
Cap/Sales(3y)2.43%
Cap/Sales(5y)2.5%
Profit Quality(3y)106.3%
Profit Quality(5y)101.27%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.5%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%-2.66%
EPS Next Y1.78%
EPS Next 2Y4.21%
EPS Next 3Y4.76%
EPS Next 5Y4.42%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.34%
Revenue Next Year3.83%
Revenue Next 2Y3.78%
Revenue Next 3Y3.35%
Revenue Next 5Y3.11%
EBIT growth 1Y1.65%
EBIT growth 3Y-0.43%
EBIT growth 5Y3.01%
EBIT Next Year15.82%
EBIT Next 3Y8.2%
EBIT Next 5Y6.41%
FCF growth 1Y-23.97%
FCF growth 3Y-0.99%
FCF growth 5Y27.34%
OCF growth 1Y-18.02%
OCF growth 3Y-1.08%
OCF growth 5Y20.34%