LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LMT - US5398301094 - Common Stock
577.89 USD
+5.19 (+0.91%)
577.146 USD
-0.74 (-0.13%)
Overall LMT gets a fundamental rating of 5 out of 10. We evaluated LMT against 71 industry peers in the Aerospace & Defense industry. LMT has only an average score on both its financial health and profitability. LMT is not valued too expensively and it also shows a decent 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.
- Each year in the past 5 years LMT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.97%, LMT is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
- The Return On Equity of LMT (67.95%) is better than 100.00% of its industry peers.
- With an excellent Return On Invested Capital value of 14.02%, LMT belongs to the best of the industry, outperforming 91.55% 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 8.54%.
- The last Return On Invested Capital (14.02%) for LMT is well below the 3 year average (18.86%), which needs to be investigated, but indicates that LMT 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
- 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.
- The Operating Margin of LMT (8.32%) is comparable to the rest of the industry.
- LMT's Operating Margin has declined in the last couple of years.
- The Gross Margin of LMT (8.25%) is worse than 81.69% of its industry peers.
- 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
- LMT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, LMT has less shares outstanding
- Compared to 5 years ago, LMT has less shares outstanding
- Compared to 1 year ago, LMT has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.41 indicates that LMT is not in any danger for bankruptcy at the moment.
- With a Altman-Z score value of 3.41, LMT perfoms like the industry average, outperforming 46.48% 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 73.24% 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.
- The Debt to Equity ratio of LMT (3.32) is worse than 85.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.41 |
ROIC/WACC1.5
WACC9.37%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that LMT should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.13, LMT is not doing good in the industry: 84.51% of the companies in the same industry are doing better.
- LMT has a Quick Ratio of 1.13. This is a bad value and indicates that LMT is not financially healthy enough and could expect problems in meeting its short term obligations.
- LMT has a worse Quick ratio (0.97) than 74.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.55% over the past year.
- The Earnings Per Share has been growing slightly by 5.03% on average over the past years.
- LMT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.88%.
- LMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.
EPS 1Y (TTM)4.55%
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
- Based on estimates for the next years, LMT will show a small growth in Earnings Per Share. The EPS will grow by 4.82% on average per year.
- Based on estimates for the next years, LMT will show a small growth in Revenue. The Revenue will grow by 2.92% on average per year.
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.
- 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
- LMT is valuated rather expensively with a Price/Earnings ratio of 19.80.
- Based on the Price/Earnings ratio, LMT is valued cheaply inside the industry as 97.18% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.54. LMT is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 19.56, LMT is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, LMT is valued cheaper than 94.37% of the companies in the same industry.
- LMT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LMT is valued a bit cheaper than 77.46% of the companies 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 91.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.11 | ||
| EV/EBITDA | 19.42 |
4.3 Compensation for Growth
- The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.94
EPS Next 2Y3.27%
EPS Next 3Y4.58%
5. Dividend
5.1 Amount
- LMT has a Yearly Dividend Yield of 2.66%.
- Compared to an average industry Dividend Yield of 0.37, LMT pays a better dividend. On top of this LMT pays more dividend than 98.59% of the companies listed in the same industry.
- LMT's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
- On average, the dividend of LMT grows each year by 7.21%, which is quite nice.
- LMT has been paying a dividend for at least 10 years, so it has 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
- 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%
577.89
+5.19 (+0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-21 2025-10-21/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners74.7%
Inst Owner Change0.03%
Ins Owners0.05%
Ins Owner Change-2.08%
Market Cap133.72B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts70.71
Price Target536.54 (-7.16%)
Short Float %1.25%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)-1.53%
PT rev (3m)10.01%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)1.48%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 19.56 | ||
| P/S | 1.82 | ||
| P/FCF | 29.11 | ||
| P/OCF | 21.02 | ||
| P/B | 21.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.42 |
EPS(TTM)29.19
EY5.05%
EPS(NY)29.55
Fwd EY5.11%
FCF(TTM)19.85
FCFY3.43%
OCF(TTM)27.49
OCFY4.76%
SpS316.98
BVpS26.71
TBVpS-30.57
PEG (NY)N/A
PEG (5Y)3.94
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 | 3.41 |
F-Score5
WACC9.37%
ROIC/WACC1.5
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 5 / 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.