LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LMT - US5398301094 - Common Stock
483.67 USD
-4.33 (-0.89%)
483.7 USD
+0.03 (+0.01%)
Overall LMT gets a fundamental rating of 5 out of 10. We evaluated LMT against 71 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
LMT had positive earnings in the past year.
In the past year LMT had a positive cash flow from operations.
In the past 5 years LMT has always been profitable.
Each year in the past 5 years LMT had a positive operating cash flow.
1.2 Ratios
LMT's Return On Assets of 6.97% is fine compared to the rest of the industry. LMT outperforms 76.06% of its industry peers.
With an excellent Return On Equity value of 67.95%, LMT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LMT has a Return On Invested Capital of 14.02%. This is amongst the best in 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 8.60%.
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 comparable to the rest of the industry: LMT outperforms 59.15% of its industry peers.
In the last couple of years the Profit Margin of LMT has declined.
With a Operating Margin value of 8.32%, LMT perfoms like the industry average, outperforming 53.52% 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 8.25%, LMT is not doing good in the industry: 83.10% 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.
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.
Compared to 1 year ago, LMT has a worse debt to assets ratio.
2.2 Solvency
LMT has an Altman-Z score of 3.19. 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 3.19, LMT is in line with its industry, outperforming 42.25% 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.
Looking at the Debt to FCF ratio, with a value of 4.83, LMT is in the better half of the industry, outperforming 74.65% 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.
With a Debt to Equity ratio value of 3.32, LMT is not doing good in the industry: 88.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.19 |
ROIC/WACC1.41
WACC9.91%
2.3 Liquidity
A Current Ratio of 1.13 indicates that LMT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, LMT is doing worse than 85.92% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that LMT may have some problems paying its short term obligations.
LMT has a Quick ratio of 0.97. This is in the lower half of the industry: LMT underperforms 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
LMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.55%.
LMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.03% yearly.
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
The Earnings Per Share is expected to grow by 4.82% on average over the next years.
LMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
EPS Next Y-19.09%
EPS Next 2Y3.27%
EPS Next 3Y4.58%
EPS Next 5Y4.82%
Revenue Next Year4.63%
Revenue Next 2Y4.45%
Revenue Next 3Y4.25%
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
With a Price/Earnings ratio of 16.57, LMT is valued correctly.
Based on the Price/Earnings ratio, LMT is valued cheaper than 95.77% of the companies in the same industry.
LMT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
LMT is valuated correctly with a Price/Forward Earnings ratio of 16.37.
Based on the Price/Forward Earnings ratio, LMT is valued cheaper than 92.96% of the companies in the same industry.
LMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.57 | ||
| Fwd PE | 16.37 |
4.2 Price Multiples
84.51% 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 91.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.37 | ||
| EV/EBITDA | 16.9 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.29
EPS Next 2Y3.27%
EPS Next 3Y4.58%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.39, LMT pays a better dividend. On top of this LMT pays more dividend than 98.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, LMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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.
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 2Y3.27%
EPS Next 3Y4.58%
483.67
-4.33 (-0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners74.67%
Inst Owner Change-1.76%
Ins Owners0.05%
Ins Owner Change-2.08%
Market Cap111.92B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts73.33
Price Target536.54 (10.93%)
Short Float %1.25%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend12.91
Dividend Growth(5Y)7.21%
DP74.05%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)-1.35%
PT rev (3m)9.52%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-5.82%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)1.48%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.57 | ||
| Fwd PE | 16.37 | ||
| P/S | 1.53 | ||
| P/FCF | 24.37 | ||
| P/OCF | 17.59 | ||
| P/B | 18.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.9 |
EPS(TTM)29.19
EY6.04%
EPS(NY)29.55
Fwd EY6.11%
FCF(TTM)19.85
FCFY4.1%
OCF(TTM)27.49
OCFY5.68%
SpS316.98
BVpS26.71
TBVpS-30.57
PEG (NY)N/A
PEG (5Y)3.29
Graham Number132.45
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 | 3.19 |
F-Score5
WACC9.91%
ROIC/WACC1.41
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-19.09%
EPS Next 2Y3.27%
EPS Next 3Y4.58%
EPS Next 5Y4.82%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%8.8%
Revenue Next Year4.63%
Revenue Next 2Y4.45%
Revenue Next 3Y4.25%
Revenue Next 5Y2.92%
EBIT growth 1Y-30.21%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year10.16%
EBIT Next 3Y10.84%
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.
Can you provide the valuation status for LOCKHEED MARTIN CORP?
ChartMill assigns a valuation rating of 6 / 10 to LOCKHEED MARTIN CORP (LMT). This can be considered as Fairly Valued.
Can you provide the profitability details for LOCKHEED MARTIN CORP?
LOCKHEED MARTIN CORP (LMT) has a profitability rating of 6 / 10.
How financially healthy is LOCKHEED MARTIN CORP?
The financial health rating of LOCKHEED MARTIN CORP (LMT) is 4 / 10.
What is the earnings growth outlook for LOCKHEED MARTIN CORP?
The Earnings per Share (EPS) of LOCKHEED MARTIN CORP (LMT) is expected to decline by -19.09% in the next year.