LOCKHEED MARTIN CORP (LOM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LOM - US5398301094 - Common Stock
506 EUR
+3.7 (+0.74%)
Overall LOM gets a fundamental rating of 5 out of 10. We evaluated LOM against 54 industry peers in the Aerospace & Defense industry. LOM has an average financial health and profitability rating. LOM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- LOM had positive earnings in the past year.
- LOM had a positive operating cash flow in the past year.
- In the past 5 years LOM has always been profitable.
- In the past 5 years LOM always reported a positive cash flow from operatings.
1.2 Ratios
- LOM's Return On Assets of 6.97% is fine compared to the rest of the industry. LOM outperforms 79.63% 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 98.15% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 14.02%, LOM belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
- LOM had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 9.17%.
- The last Return On Invested Capital (14.02%) for LOM is well below the 3 year average (18.86%), which needs to be investigated, but indicates that LOM 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
- Looking at the Profit Margin, with a value of 5.73%, LOM is in line with its industry, outperforming 46.30% of the companies in the same industry.
- In the last couple of years the Profit Margin of LOM has declined.
- LOM's Operating Margin of 8.32% is in line compared to the rest of the industry. LOM outperforms 51.85% of its industry peers.
- 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: 87.04% 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
- LOM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for LOM has been reduced compared to 1 year ago.
- LOM has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for LOM is higher compared to a year ago.
2.2 Solvency
- LOM has an Altman-Z score of 3.45. This indicates that LOM is financially healthy and has little risk of bankruptcy at the moment.
- LOM has a better Altman-Z score (3.45) than 70.37% of its industry peers.
- The Debt to FCF ratio of LOM is 4.83, which is a neutral value as it means it would take LOM, 4.83 years of fcf income to pay off all of its debts.
- LOM's Debt to FCF ratio of 4.83 is fine compared to the rest of the industry. LOM outperforms 64.81% 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.
- The Debt to Equity ratio of LOM (3.32) is worse than 87.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.44
WACC9.75%
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 Current ratio of 1.13. This is in the lower half of the industry: LOM underperforms 62.96% of its industry peers.
- A Quick Ratio of 0.97 indicates that LOM may have some problems paying 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 66.67% 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%.
- Measured over the past 5 years, LOM shows a small growth in Earnings Per Share. The EPS has been growing by 5.03% on average per year.
- The Revenue has been growing slightly by 2.88% in the past year.
- The Revenue has been growing slightly by 3.50% on average over the past years.
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.
- 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-19.09%
EPS Next 2Y3.27%
EPS Next 3Y4.58%
EPS Next 5Y4.82%
Revenue Next Year4.63%
Revenue Next 2Y4.44%
Revenue Next 3Y4.27%
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.
- 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
- Based on the Price/Earnings ratio of 20.29, the valuation of LOM can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of LOM indicates a rather cheap valuation: LOM is cheaper than 96.30% of the companies listed in the same industry.
- LOM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- The Price/Forward Earnings ratio is 20.04, which indicates a rather expensive current valuation of LOM.
- LOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. LOM is cheaper than 88.89% of the companies in the same industry.
- LOM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 20.04 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LOM is valued a bit cheaper than the industry average as 64.81% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOM indicates a rather cheap valuation: LOM is cheaper than 81.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.84 | ||
| EV/EBITDA | 19.87 |
4.3 Compensation for Growth
- The decent profitability rating of LOM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.03
EPS Next 2Y3.27%
EPS Next 3Y4.58%
5. Dividend
5.1 Amount
- LOM has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
- LOM's Dividend Yield is rather good when compared to the industry average which is at 0.75. LOM pays more dividend than 98.15% of the companies 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 | 2.39% |
5.2 History
- On average, the dividend of LOM grows each year by 7.21%, which is quite nice.
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 LOM. This is not a sustainable payout ratio.
- The dividend of LOM 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%
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%.