LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LMT - US5398301094 - Common Stock
485 USD
+2.45 (+0.51%)
Taking everything into account, LMT scores 5 out of 10 in our fundamental rating. LMT was compared to 71 industry peers in the Aerospace & Defense industry. LMT has an average financial health and profitability rating. LMT is not valued too expensively and it also shows a decent 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.
LMT had positive earnings in each of the past 5 years.
LMT had a positive operating cash flow in each of the past 5 years.
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.
The Return On Equity of LMT (67.95%) is better than 100.00% of its industry peers.
The Return On Invested Capital of LMT (14.02%) is better than 91.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LMT 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
With a Profit Margin value of 5.73%, LMT perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
In the last couple of years the Profit Margin of LMT has declined.
LMT has a Operating Margin (8.32%) which is in line with its industry peers.
In the last couple of years the Operating Margin of LMT has declined.
LMT has a Gross Margin of 8.25%. This is amonst the worse of the industry: LMT underperforms 83.10% of its industry peers.
In the last couple of years the Gross Margin of LMT 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LMT is creating value.
The number of shares outstanding for LMT has been reduced compared to 1 year ago.
Compared to 5 years ago, LMT has less shares outstanding
The debt/assets ratio for LMT is higher compared to a year ago.
2.2 Solvency
LMT has an Altman-Z score of 3.18. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.18, LMT perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
The Debt to FCF ratio of LMT is 4.83, which is a neutral value as it means it would take LMT, 4.83 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.83, LMT is doing good in the industry, outperforming 74.65% of the companies in the same industry.
A Debt/Equity ratio of 3.32 is on the high side and indicates that LMT has dependencies on debt financing.
LMT has a worse Debt to Equity ratio (3.32) than 88.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.46
WACC9.61%
2.3 Liquidity
A Current Ratio of 1.13 indicates that LMT should not have too much problems paying its short term obligations.
LMT has a Current ratio of 1.13. This is amonst the worse of the industry: LMT underperforms 85.92% of its industry peers.
A Quick Ratio of 0.97 indicates that LMT may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, LMT is not doing good in the industry: 76.06% of the companies in the same industry are doing better.
| 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.
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.
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.
The Revenue is expected to grow by 2.92% on average over the next years.
EPS Next Y-18.53%
EPS Next 2Y3.21%
EPS Next 3Y4.49%
EPS Next 5Y4.82%
Revenue Next Year4.63%
Revenue Next 2Y4.43%
Revenue Next 3Y4.23%
Revenue Next 5Y2.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 16.62, LMT is valued correctly.
Based on the Price/Earnings ratio, LMT is valued cheaper than 97.18% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.50. LMT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.43, 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 92.96% of the companies listed in the same industry.
LMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.93.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LMT is valued cheaper than 84.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LMT is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.43 | ||
| EV/EBITDA | 16.74 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.3
EPS Next 2Y3.21%
EPS Next 3Y4.49%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
LMT's Dividend Yield is rather good when compared to the industry average which is at 0.41. LMT pays more dividend than 98.59% of the companies in the same industry.
LMT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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
74.05% of the earnings are spent on dividend by LMT. This is not a sustainable payout ratio.
LMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP74.05%
EPS Next 2Y3.21%
EPS Next 3Y4.49%
NYSE:LMT (12/24/2025, 9:55:06 AM)
485
+2.45 (+0.51%)
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 Cap112.23B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts73.33
Price TargetN/A
Short Float %1.44%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend12.91
Dividend Growth(5Y)7.21%
DP74.05%
Div Incr Years6
Div Non Decr Years6
Ex-Date
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)0.49%
PT rev (3m)11.22%
EPS NQ rev (1m)-3.02%
EPS NQ rev (3m)-5.97%
EPS NY rev (1m)0.28%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 16.43 | ||
| P/S | 1.53 | ||
| P/FCF | 24.43 | ||
| P/OCF | 17.64 | ||
| P/B | 18.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.74 |
EPS(TTM)29.19
EY6.02%
EPS(NY)29.52
Fwd EY6.09%
FCF(TTM)19.85
FCFY4.09%
OCF(TTM)27.49
OCFY5.67%
SpS316.98
BVpS26.71
TBVpS-30.57
PEG (NY)N/A
PEG (5Y)3.3
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 | 3.18 |
F-Score5
WACC9.61%
ROIC/WACC1.46
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-18.53%
EPS Next 2Y3.21%
EPS Next 3Y4.49%
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 2Y4.43%
Revenue Next 3Y4.23%
Revenue Next 5Y2.92%
EBIT growth 1Y-30.21%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year10.1%
EBIT Next 3Y10.85%
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.
What is the valuation status for LMT stock?
ChartMill assigns a valuation rating of 6 / 10 to LOCKHEED MARTIN CORP (LMT). This can be considered as Fairly Valued.
What is the profitability of LMT stock?
LOCKHEED MARTIN CORP (LMT) has a profitability rating of 6 / 10.
What is the financial health of LOCKHEED MARTIN CORP (LMT) stock?
The financial health rating of LOCKHEED MARTIN CORP (LMT) is 4 / 10.
How sustainable is the dividend of LOCKHEED MARTIN CORP (LMT) stock?
The dividend rating of LOCKHEED MARTIN CORP (LMT) is 6 / 10 and the dividend payout ratio is 74.05%.