LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - NYSE:LMT - US5398301094 - Common Stock
511.07 USD
-3.17 (-0.62%)
511 USD
-0.07 (-0.01%)
LMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Aerospace & Defense industry. While LMT is still in line with the averages on profitability rating, there are concerns on its financial health. LMT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LMT was profitable.
LMT had a positive operating cash flow in the past year.
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 has a better Return On Assets (7.14%) than 79.41% of its industry peers.
With an excellent Return On Equity value of 78.82%, LMT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.80%, LMT belongs to the best of the industry, outperforming 95.59% 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 8.27%.
The 3 year average ROIC (18.86%) for LMT is well above the current ROIC(14.80%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 78.82% | ||
| ROIC | 14.8% |
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 5.85%. This is in the better half of the industry: LMT outperforms 64.71% of its industry peers.
LMT's Profit Margin has declined in the last couple of years.
The Operating Margin of LMT (8.30%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LMT has declined.
The Gross Margin of LMT (8.25%) is worse than 79.41% of its industry peers.
LMT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.3% | ||
| PM (TTM) | 5.85% | ||
| 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.
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
An Altman-Z score of 3.21 indicates that LMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.21, LMT is in line with its industry, outperforming 44.12% of the companies in the same industry.
LMT has a debt to FCF ratio of 6.50. This is a slightly negative value and a sign of low solvency as LMT would need 6.50 years to pay back of all of its debts.
LMT has a Debt to FCF ratio of 6.50. This is in the better half of the industry: LMT outperforms 67.65% of its industry peers.
LMT has a Debt/Equity ratio of 3.47. This is a high value indicating a heavy dependency on external financing.
LMT's Debt to Equity ratio of 3.47 is on the low side compared to the rest of the industry. LMT is outperformed by 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.47 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 3.21 |
ROIC/WACC1.55
WACC9.57%
2.3 Liquidity
LMT has a Current Ratio of 0.98. This is a bad value and indicates that LMT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.98, LMT is not doing good in the industry: 86.76% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that LMT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.83, LMT is doing worse than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
LMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.27%.
LMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.03% yearly.
The Revenue has been growing slightly by 1.09% in the past year.
The Revenue has been growing slightly by 3.50% on average over the past years.
EPS 1Y (TTM)4.27%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%6.42%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%0.18%
3.2 Future
The Earnings Per Share is expected to grow by 5.66% on average over the next years.
Based on estimates for the next years, LMT will show a small growth in Revenue. The Revenue will grow by 3.23% on average per year.
EPS Next Y-20.26%
EPS Next 2Y2.93%
EPS Next 3Y4.61%
EPS Next 5Y5.66%
Revenue Next Year4.28%
Revenue Next 2Y4.08%
Revenue Next 3Y3.91%
Revenue Next 5Y3.23%
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
The Price/Earnings ratio is 17.60, which indicates a rather expensive current valuation of LMT.
Based on the Price/Earnings ratio, LMT is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
LMT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.41, which indicates a rather expensive current valuation of LMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 86.76% of the companies listed in the same industry.
LMT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 17.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LMT is valued a bit cheaper than the industry average as 72.06% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 80.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.84 | ||
| EV/EBITDA | 18.45 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.5
EPS Next 2Y2.93%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.64%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.21, LMT pays a better dividend. On top of this LMT pays more dividend than 98.53% of the companies listed in the same industry.
LMT's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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
73.60% of the earnings are spent on dividend by LMT. 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.
DP73.6%
EPS Next 2Y2.93%
EPS Next 3Y4.61%
511.07
-3.17 (-0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change0.01%
Ins Owners0.05%
Ins Owner Change0%
Market Cap119.32B
Analysts72.31
Price Target487.7 (-4.57%)
Short Float %1.05%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend12.91
Dividend Growth(5Y)7.21%
DP73.6%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.9%
Min EPS beat(2)12.03%
Max EPS beat(2)13.78%
EPS beat(4)4
Avg EPS beat(4)10.9%
Min EPS beat(4)3.56%
Max EPS beat(4)14.24%
EPS beat(8)7
Avg EPS beat(8)8.07%
EPS beat(12)9
Avg EPS beat(12)6.11%
EPS beat(16)12
Avg EPS beat(16)3.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-0.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)-0.09%
Revenue beat(8)3
Avg Revenue beat(8)0.9%
Revenue beat(12)5
Avg Revenue beat(12)1.02%
Revenue beat(16)5
Avg Revenue beat(16)-0.32%
PT rev (1m)-2.09%
PT rev (3m)-10.36%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-4.91%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)-20.18%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 17.41 | ||
| P/S | 1.66 | ||
| P/FCF | 35.84 | ||
| P/OCF | 23.53 | ||
| P/B | 22.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.45 |
EPS(TTM)29.04
EY5.68%
EPS(NY)29.36
Fwd EY5.74%
FCF(TTM)14.26
FCFY2.79%
OCF(TTM)21.72
OCFY4.25%
SpS307.72
BVpS22.85
TBVpS-34.21
PEG (NY)N/A
PEG (5Y)3.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 78.82% | ||
| ROCE | 17.28% | ||
| ROIC | 14.8% | ||
| ROICexc | 15.38% | ||
| ROICexgc | 25.67% | ||
| OM | 8.3% | ||
| PM (TTM) | 5.85% | ||
| GM | 8.25% | ||
| FCFM | 4.63% |
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%
ROICexcg growth 3Y-7.66%
ROICexcg 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 | 3.47 | ||
| Debt/FCF | 6.5 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 105.9% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.63% | ||
| Profit Quality | 79.19% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.21 |
F-Score5
WACC9.57%
ROIC/WACC1.55
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)4.27%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%6.42%
EPS Next Y-20.26%
EPS Next 2Y2.93%
EPS Next 3Y4.61%
EPS Next 5Y5.66%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%0.18%
Revenue Next Year4.28%
Revenue Next 2Y4.08%
Revenue Next 3Y3.91%
Revenue Next 5Y3.23%
EBIT growth 1Y-31.04%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year10.51%
EBIT Next 3Y10.44%
EBIT Next 5Y7.54%
FCF growth 1Y-44.55%
FCF growth 3Y-11.77%
FCF growth 5Y-1.93%
OCF growth 1Y-34.36%
OCF growth 3Y-8.9%
OCF growth 5Y-0.95%