LOCKHEED MARTIN CORP (LMT)
US5398301094 - Common Stock
Taking everything into account, LMT scores 6 out of 10 in our fundamental rating. LMT was compared to 64 industry peers in the Aerospace & Defense industry. While LMT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
Each year in the past 5 years LMT has been profitable.
LMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LMT has a Return On Assets of 12.33%. This is amongst the best in the industry. LMT outperforms 93.75% of its industry peers.
LMT has a Return On Equity of 101.89%. This is amongst the best in the industry. LMT outperforms 98.44% of its industry peers.
LMT's Return On Invested Capital of 19.74% is amongst the best of the industry. LMT outperforms 98.44% 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 8.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.33% | ||
| ROE | 101.89% | ||
| ROIC | 19.74% |
ROA(3y)12.15%
ROA(5y)12.61%
ROE(3y)73.58%
ROE(5y)106.71%
ROIC(3y)20.32%
ROIC(5y)20.55%
1.3 Margins
With a decent Profit Margin value of 9.73%, LMT is doing good in the industry, outperforming 76.56% of the companies in the same industry.
In the last couple of years the Profit Margin of LMT has grown nicely.
LMT has a Operating Margin of 12.34%. This is amongst the best in the industry. LMT outperforms 81.25% of its industry peers.
LMT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.23%, LMT is not doing good in the industry: 76.56% of the companies in the same industry are doing better.
LMT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.34% | ||
| PM (TTM) | 9.73% | ||
| GM | 12.23% |
OM growth 3Y-1.51%
OM growth 5Y-1.59%
PM growth 3Y-0.67%
PM growth 5Y1.76%
GM growth 3Y-1.5%
GM growth 5Y-1.72%
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
LMT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LMT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.67 indicates that LMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.67, LMT is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Debt to FCF ratio of LMT is 3.12, which is a good value as it means it would take LMT, 3.12 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LMT (3.12) is better than 84.38% of its industry peers.
A Debt/Equity ratio of 2.89 is on the high side and indicates that LMT has dependencies on debt financing.
LMT has a Debt to Equity ratio of 2.89. This is amonst the worse of the industry: LMT underperforms 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 3.12 | ||
| Altman-Z | 3.67 |
ROIC/WACC2.17
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.30 indicates that LMT should not have too much problems paying its short term obligations.
LMT has a Current ratio of 1.30. This is in the lower half of the industry: LMT underperforms 67.19% of its industry peers.
A Quick Ratio of 1.11 indicates that LMT should not have too much problems paying its short term obligations.
The Quick ratio of LMT (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
LMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.01%, which is quite impressive.
Measured over the past years, LMT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.29% on average per year.
Looking at the last year, LMT shows a small growth in Revenue. The Revenue has grown by 5.28% in the last year.
The Revenue has been growing slightly by 4.68% on average over the past years.
EPS 1Y (TTM)26.01%
EPS 3Y3.77%
EPS 5Y9.29%
EPS growth Q2Q-4.24%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y1.1%
Revenue growth 5Y4.68%
Revenue growth Q2Q13.68%
3.2 Future
LMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.80% yearly.
LMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.91% yearly.
EPS Next Y-5.57%
EPS Next 2Y0.25%
EPS Next 3Y1.87%
EPS Next 5Y2.8%
Revenue Next Year4.23%
Revenue Next 2Y3.88%
Revenue Next 3Y3.74%
Revenue Next 5Y2.91%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.73, the valuation of LMT can be described as correct.
87.50% of the companies in the same industry are more expensive than LMT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.92. LMT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.48, LMT is valued correctly.
Based on the Price/Forward Earnings ratio, LMT is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, LMT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.73 | ||
| Fwd PE | 16.48 |
4.2 Price Multiples
LMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LMT is cheaper than 84.38% 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 92.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.85 | ||
| EV/EBITDA | 12.78 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y0.25%
EPS Next 3Y1.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.74%, LMT has a reasonable but not impressive dividend return.
LMT's Dividend Yield is rather good when compared to the industry average which is at 1.36. LMT pays more dividend than 96.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, LMT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
On average, the dividend of LMT grows each year by 8.25%, which is quite nice.
LMT has paid a dividend for at least 10 years, which is a reliable track record.
LMT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.25%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
LMT pays out 45.04% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of LMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.04%
EPS Next 2Y0.25%
EPS Next 3Y1.87%
LOCKHEED MARTIN CORP
NYSE:LMT (4/26/2024, 7:04:00 PM)
After market: 461.29 0 (0%)461.29
-3.49 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap110.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.73 | ||
| Fwd PE | 16.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.33% | ||
| ROE | 101.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.34% | ||
| PM (TTM) | 9.73% | ||
| GM | 12.23% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)26.01%
EPS 3Y3.77%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.28%
Revenue growth 3Y1.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y