LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LMT - US5398301094 - Common Stock
454.16 USD
+1.75 (+0.39%)
454.992 USD
+0.83 (+0.18%)
We assign a fundamental rating of 5 out of 10 to LMT. LMT was compared to 71 industry peers in the Aerospace & Defense industry. LMT has an average financial health and profitability rating. LMT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LMT had positive earnings in the past year.
LMT had a positive operating cash flow in the past year.
Each year in the past 5 years LMT has been profitable.
Each year in the past 5 years LMT had a positive operating cash flow.
1.2 Ratios
LMT has a better Return On Assets (6.97%) than 77.46% of its industry peers.
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 8.53%.
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
Looking at the Profit Margin, with a value of 5.73%, LMT is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
LMT's Profit Margin has declined in the last couple of years.
LMT has a Operating Margin (8.32%) which is in line with its industry peers.
LMT's Operating Margin has declined in the last couple of years.
LMT's Gross Margin of 8.25% is on the low side compared to the rest of the industry. LMT is outperformed by 80.28% 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.
Compared to 1 year ago, LMT has less shares outstanding
Compared to 5 years ago, LMT has less shares outstanding
LMT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.11 indicates that LMT is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.11, LMT perfoms like the industry average, outperforming 46.48% 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.
LMT has a Debt to FCF ratio of 4.83. This is in the better half of the industry: LMT outperforms 74.65% of its industry peers.
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 85.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.11 |
ROIC/WACC1.4
WACC10.04%
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 worse Current ratio (1.13) than 81.69% of its industry peers.
A Quick Ratio of 0.97 indicates that LMT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.97, LMT is doing worse than 71.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
LMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.55%.
LMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.03% yearly.
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 5.40% on average per year.
The Revenue is expected to grow by 2.92% on average over the next years.
EPS Next Y-18.77%
EPS Next 2Y3.05%
EPS Next 3Y4.31%
EPS Next 5Y5.4%
Revenue Next Year4.59%
Revenue Next 2Y4.41%
Revenue Next 3Y4.2%
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
A Price/Earnings ratio of 15.56 indicates a correct valuation of LMT.
Compared to the rest of the industry, the Price/Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 95.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, LMT is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.43, which indicates a correct valuation of LMT.
Based on the Price/Forward Earnings ratio, LMT is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
LMT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 15.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 81.69% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LMT is valued cheaper than 91.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.09 | ||
| EV/EBITDA | 16.02 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.09
EPS Next 2Y3.05%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.95%, LMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.15, LMT pays a better dividend. On top of this LMT pays more dividend than 98.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, LMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
The dividend of LMT is nicely growing with an annual growth rate of 7.21%!
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 2Y3.05%
EPS Next 3Y4.31%
454.16
+1.75 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-1.76%
Ins Owners0.05%
Ins Owner Change-1.99%
Market Cap106.03B
Revenue(TTM)73.35B
Net Income(TTM)4.20B
Analysts72.31
Price Target543.87 (19.75%)
Short Float %1.12%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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)11.52%
PT rev (3m)9.18%
EPS NQ rev (1m)-2.45%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)1.91%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 15.43 | ||
| P/S | 1.45 | ||
| P/FCF | 23.09 | ||
| P/OCF | 16.67 | ||
| P/B | 17.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.02 |
EPS(TTM)29.19
EY6.43%
EPS(NY)29.43
Fwd EY6.48%
FCF(TTM)19.67
FCFY4.33%
OCF(TTM)27.25
OCFY6%
SpS314.17
BVpS26.47
TBVpS-30.3
PEG (NY)N/A
PEG (5Y)3.09
Graham Number131.86
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 | 3.11 |
F-Score5
WACC10.04%
ROIC/WACC1.4
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-18.77%
EPS Next 2Y3.05%
EPS Next 3Y4.31%
EPS Next 5Y5.4%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%8.8%
Revenue Next Year4.59%
Revenue Next 2Y4.41%
Revenue Next 3Y4.2%
Revenue Next 5Y2.92%
EBIT growth 1Y-30.21%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year10.51%
EBIT Next 3Y10.44%
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%.