LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
NYSE:LMT - New York Stock Exchange, Inc. - US5398301094 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to LMT. LMT was compared to 64 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of LMT get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year LMT had a positive cash flow from operations.
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 (9.71%) than 93.75% of its industry peers.
With an excellent Return On Equity value of 82.34%, LMT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.83%, LMT belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
LMT had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 7.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 82.34% | ||
| ROIC | 17.83% |
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 decent Profit Margin value of 7.66%, LMT is doing good in the industry, outperforming 71.88% of the companies in the same industry.
LMT's Profit Margin has declined in the last couple of years.
LMT has a Operating Margin of 10.29%. This is in the better half of the industry: LMT outperforms 70.31% of its industry peers.
LMT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 10.23%, LMT is doing worse than 81.25% of the companies in the same industry.
In the last couple of years the Gross Margin of LMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.29% | ||
| PM (TTM) | 7.66% | ||
| GM | 10.23% |
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.
LMT has less shares outstanding than it did 1 year ago.
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
LMT has an Altman-Z score of 3.42. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LMT (3.42) is comparable to the rest of the industry.
The Debt to FCF ratio of LMT is 4.07, which is a neutral value as it means it would take LMT, 4.07 years of fcf income to pay off all of its debts.
LMT has a Debt to FCF ratio of 4.07. This is amongst the best in the industry. LMT outperforms 81.25% of its industry peers.
LMT has a Debt/Equity ratio of 2.79. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LMT (2.79) is worse than 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.77
WACC10.09%
2.3 Liquidity
A Current Ratio of 1.08 indicates that LMT should not have too much problems paying its short term obligations.
The Current ratio of LMT (1.08) is worse than 81.25% of its industry peers.
LMT has a Quick Ratio of 1.08. 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 Quick ratio of 0.91. This is in the lower half of the industry: LMT underperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.51% over the past year.
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 3.12%.
LMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.
EPS 1Y (TTM)3.51%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%13.93%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%4.47%
3.2 Future
LMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.65% yearly.
Based on estimates for the next years, LMT will show a small growth in Revenue. The Revenue will grow by 3.22% on average per year.
EPS Next Y-0.15%
EPS Next 2Y4.33%
EPS Next 3Y5.33%
EPS Next 5Y5.65%
Revenue Next Year4.4%
Revenue Next 2Y4.15%
Revenue Next 3Y4%
Revenue Next 5Y3.22%
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 16.45, which 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 89.06% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. LMT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.60 indicates a correct valuation of LMT.
Based on the Price/Forward Earnings ratio, LMT is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
LMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.45 | ||
| Fwd PE | 15.6 |
4.2 Price Multiples
79.69% of the companies in the same industry are more expensive than LMT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LMT is valued cheaper than 92.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.11 | ||
| EV/EBITDA | 14.31 |
4.3 Compensation for Growth
LMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.27
EPS Next 2Y4.33%
EPS Next 3Y5.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.84%, LMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.34, LMT pays a better dividend. On top of this LMT pays more dividend than 96.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, LMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
The dividend of LMT is nicely growing with an annual growth rate of 7.21%!
LMT has paid a dividend for at least 10 years, which is a reliable track record.
As LMT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.21%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
LMT pays out 55.88% 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.
DP55.88%
EPS Next 2Y4.33%
EPS Next 3Y5.33%
470.45
+0.17 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners74.93%
Inst Owner Change-1.18%
Ins Owners0.04%
Ins Owner Change12.01%
Market Cap110.23B
Analysts73.79
Price Target539.03 (14.58%)
Short Float %0.84%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend12.91
Dividend Growth(5Y)7.21%
DP55.88%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.01%
Min EPS beat(2)13.78%
Max EPS beat(2)14.24%
EPS beat(4)4
Avg EPS beat(4)9.12%
Min EPS beat(4)3.56%
Max EPS beat(4)14.24%
EPS beat(8)7
Avg EPS beat(8)6.78%
EPS beat(12)8
Avg EPS beat(12)2.29%
EPS beat(16)12
Avg EPS beat(16)3.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-0.09%
Revenue beat(4)1
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)5.27%
Revenue beat(8)4
Avg Revenue beat(8)1.79%
Revenue beat(12)5
Avg Revenue beat(12)0.9%
Revenue beat(16)5
Avg Revenue beat(16)-0.15%
PT rev (1m)0.01%
PT rev (3m)-5.36%
EPS NQ rev (1m)-2.68%
EPS NQ rev (3m)-3.16%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.45 | ||
| Fwd PE | 15.6 | ||
| P/S | 1.53 | ||
| P/FCF | 22.11 | ||
| P/OCF | 16.34 | ||
| P/B | 16.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.31 |
EPS(TTM)28.6
EY6.08%
EPS(NY)30.16
Fwd EY6.41%
FCF(TTM)21.28
FCFY4.52%
OCF(TTM)28.79
OCFY6.12%
SpS306.49
BVpS28.52
TBVpS-27.08
PEG (NY)N/A
PEG (5Y)3.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 82.34% | ||
| ROCE | 20.82% | ||
| ROIC | 17.83% | ||
| ROICexc | 18.78% | ||
| ROICexgc | 30.63% | ||
| OM | 10.29% | ||
| PM (TTM) | 7.66% | ||
| GM | 10.23% | ||
| FCFM | 6.94% |
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-Score6
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 4.07 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 109.72% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.02% | ||
| Profit Quality | 90.59% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.42 |
F-Score6
WACC10.09%
ROIC/WACC1.77
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)3.51%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%13.93%
EPS Next Y-0.15%
EPS Next 2Y4.33%
EPS Next 3Y5.33%
EPS Next 5Y5.65%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%4.47%
Revenue Next Year4.4%
Revenue Next 2Y4.15%
Revenue Next 3Y4%
Revenue Next 5Y3.22%
EBIT growth 1Y-13.61%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year25.77%
EBIT Next 3Y10.78%
EBIT Next 5Y7.62%
FCF growth 1Y-20.37%
FCF growth 3Y-11.77%
FCF growth 5Y-1.93%
OCF growth 1Y-15.21%
OCF growth 3Y-8.9%
OCF growth 5Y-0.95%