LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
USA - NYSE:LMT - US5398301094 - Common Stock
473.25 USD
+1.94 (+0.41%)
473.25 USD
0 (0%)
LMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 69 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 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.
In the past 5 years LMT has always been profitable.
In the past 5 years LMT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.14%, LMT is in the better half of the industry, outperforming 79.71% of the companies in the same industry.
LMT has a better Return On Equity (78.82%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 14.80%, LMT belongs to the best of the industry, outperforming 95.65% 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 8.22%.
The last Return On Invested Capital (14.80%) for LMT is well below the 3 year average (18.86%), which needs to be investigated, but indicates that LMT had better years and this may not be a problem.
| 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's Profit Margin of 5.85% is fine compared to the rest of the industry. LMT outperforms 65.22% of its industry peers.
LMT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.30%, LMT is in line with its industry, outperforming 56.52% of the companies in the same industry.
In the last couple of years the Operating Margin of LMT has declined.
LMT's Gross Margin of 8.25% is on the low side compared to the rest of the industry. LMT is outperformed by 79.71% of its industry peers.
In the last couple of years the Gross Margin of LMT has declined.
| 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.
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 3.10. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.10, LMT perfoms like the industry average, outperforming 44.93% 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.
With a decent Debt to FCF ratio value of 6.50, LMT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
LMT has a Debt/Equity ratio of 3.47. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LMT (3.47) is worse than 85.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.47 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 3.1 |
ROIC/WACC1.54
WACC9.62%
2.3 Liquidity
A Current Ratio of 0.98 indicates that LMT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, LMT is doing worse than 86.96% of the companies in the same industry.
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 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.27% over the past year.
The Earnings Per Share has been growing slightly by 5.03% on average over the past years.
The Revenue has been growing slightly by 1.09% in the past year.
Measured over the past years, LMT shows a small growth in Revenue. The Revenue has been growing by 3.50% on average per year.
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
LMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.66% yearly.
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-18.31%
EPS Next 2Y3.09%
EPS Next 3Y4.59%
EPS Next 5Y5.66%
Revenue Next Year4.22%
Revenue Next 2Y4.11%
Revenue Next 3Y3.95%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.30, LMT is valued correctly.
LMT's Price/Earnings ratio is rather cheap when compared to the industry. LMT is cheaper than 94.20% of the companies in the same industry.
LMT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
LMT is valuated correctly with a Price/Forward Earnings ratio of 16.07.
LMT's Price/Forward Earnings ratio is rather cheap when compared to the industry. LMT is cheaper than 89.86% of the companies in the same industry.
LMT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 16.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LMT is valued a bit cheaper than the industry average as 72.46% 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 82.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.19 | ||
| EV/EBITDA | 17.13 |
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)3.24
EPS Next 2Y3.09%
EPS Next 3Y4.59%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.80%.
LMT's Dividend Yield is rather good when compared to the industry average which is at 1.47. LMT pays more dividend than 98.55% of the companies in the same industry.
LMT's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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.
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 73.60% of its income as dividend. 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 2Y3.09%
EPS Next 3Y4.59%
473.25
+1.94 (+0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.34%
Inst Owner Change-1.33%
Ins Owners0.05%
Ins Owner Change0%
Market Cap110.49B
Analysts71.85
Price Target489.91 (3.52%)
Short Float %1.17%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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)-1.83%
PT rev (3m)-9.21%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)-17.91%
EPS NY rev (3m)-18.19%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 16.07 | ||
| P/S | 1.54 | ||
| P/FCF | 33.19 | ||
| P/OCF | 21.79 | ||
| P/B | 20.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.13 |
EPS(TTM)29.04
EY6.14%
EPS(NY)29.45
Fwd EY6.22%
FCF(TTM)14.26
FCFY3.01%
OCF(TTM)21.72
OCFY4.59%
SpS307.72
BVpS22.85
TBVpS-34.21
PEG (NY)N/A
PEG (5Y)3.24
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 | 3.1 |
F-Score5
WACC9.62%
ROIC/WACC1.54
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-18.31%
EPS Next 2Y3.09%
EPS Next 3Y4.59%
EPS Next 5Y5.66%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%0.18%
Revenue Next Year4.22%
Revenue Next 2Y4.11%
Revenue Next 3Y3.95%
Revenue Next 5Y3.23%
EBIT growth 1Y-31.04%
EBIT growth 3Y-8.05%
EBIT growth 5Y-3.6%
EBIT Next Year9.04%
EBIT Next 3Y10.25%
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%