LOCKHEED MARTIN CORP (LOM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LOM - US5398301094 - Common Stock
495 EUR
+3.05 (+0.62%)
We assign a fundamental rating of 5 out of 10 to LOM. LOM was compared to 53 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of LOM get a neutral evaluation. Nothing too spectacular is happening here. LOM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year LOM was profitable.
- In the past year LOM had a positive cash flow from operations.
- In the past 5 years LOM has always been profitable.
- LOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LOM has a better Return On Assets (6.97%) than 81.13% of its industry peers.
- Looking at the Return On Equity, with a value of 67.95%, LOM belongs to the top of the industry, outperforming 98.11% of the companies in the same industry.
- LOM has a better Return On Invested Capital (14.02%) than 84.91% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LOM is significantly above the industry average of 9.24%.
- The 3 year average ROIC (18.86%) for LOM 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
- Looking at the Profit Margin, with a value of 5.73%, LOM is in line with its industry, outperforming 47.17% of the companies in the same industry.
- LOM's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 8.32%, LOM perfoms like the industry average, outperforming 50.94% of the companies in the same industry.
- LOM's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 8.25%, LOM is not doing good in the industry: 84.91% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of LOM 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOM is creating value.
- LOM has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for LOM has been reduced compared to 5 years ago.
- Compared to 1 year ago, LOM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.44 indicates that LOM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of LOM (3.44) is better than 69.81% of its industry peers.
- LOM has a debt to FCF ratio of 4.83. This is a neutral value as LOM would need 4.83 years to pay back of all of its debts.
- LOM has a Debt to FCF ratio of 4.83. This is in the better half of the industry: LOM outperforms 66.04% of its industry peers.
- A Debt/Equity ratio of 3.32 is on the high side and indicates that LOM has dependencies on debt financing.
- LOM has a Debt to Equity ratio of 3.32. This is amonst the worse of the industry: LOM underperforms 86.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.4
WACC9.98%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that LOM should not have too much problems paying its short term obligations.
- LOM has a worse Current ratio (1.13) than 62.26% of its industry peers.
- LOM has a Quick Ratio of 1.13. This is a bad value and indicates that LOM is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.97, LOM is in the better half of the industry, outperforming 67.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- LOM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.55%.
- LOM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.03% yearly.
- LOM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.88%.
- Measured over the past years, LOM 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
- LOM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.82% yearly.
- LOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
EPS Next Y-20.4%
EPS Next 2Y3.3%
EPS Next 3Y4.5%
EPS Next 5Y4.82%
Revenue Next Year4.64%
Revenue Next 2Y4.5%
Revenue Next 3Y4.39%
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
- Based on the Price/Earnings ratio of 20.23, the valuation of LOM can be described as rather expensive.
- Based on the Price/Earnings ratio, LOM is valued cheaply inside the industry as 98.11% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.82. LOM is valued slightly cheaper when compared to this.
- LOM is valuated rather expensively with a Price/Forward Earnings ratio of 19.97.
- Based on the Price/Forward Earnings ratio, LOM is valued cheaply inside the industry as 94.34% of the companies are valued more expensively.
- LOM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 19.97 |
4.2 Price Multiples
- LOM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LOM is cheaper than 62.26% of the companies in the same industry.
- 81.13% of the companies in the same industry are more expensive than LOM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.75 | ||
| EV/EBITDA | 19.84 |
4.3 Compensation for Growth
- The decent profitability rating of LOM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.02
EPS Next 2Y3.3%
EPS Next 3Y4.5%
5. Dividend
5.1 Amount
- LOM has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.74, LOM pays a better dividend. On top of this LOM pays more dividend than 98.11% of the companies listed in the same industry.
- LOM's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
- The dividend of LOM is nicely growing with an annual growth rate of 7.21%!
Dividend Growth(5Y)7.21%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- LOM pays out 74.05% of its income as dividend. This is not a sustainable payout ratio.
- LOM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP74.05%
EPS Next 2Y3.3%
EPS Next 3Y4.5%
LOCKHEED MARTIN CORP / LOM.DE FAQ
Can you provide the ChartMill fundamental rating for LOCKHEED MARTIN CORP?
ChartMill assigns a fundamental rating of 5 / 10 to LOM.DE.
What is the valuation status of LOCKHEED MARTIN CORP (LOM.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to LOCKHEED MARTIN CORP (LOM.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for LOCKHEED MARTIN CORP?
LOCKHEED MARTIN CORP (LOM.DE) has a profitability rating of 6 / 10.
Can you provide the financial health for LOM stock?
The financial health rating of LOCKHEED MARTIN CORP (LOM.DE) is 5 / 10.
Is the dividend of LOCKHEED MARTIN CORP sustainable?
The dividend rating of LOCKHEED MARTIN CORP (LOM.DE) is 5 / 10 and the dividend payout ratio is 74.05%.