LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
NYSE:LMT - US5398301094 - Common Stock
447.2 USD
+1.2 (+0.27%)
446.87 USD
-0.33 (-0.07%)
Overall LMT gets a fundamental rating of 5 out of 10. We evaluated LMT 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 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.
LMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LMT has a Return On Assets of 7.14%. This is in the better half of the industry: LMT outperforms 79.41% of its industry peers.
The Return On Equity of LMT (78.82%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.80%, LMT belongs to the top of the industry, outperforming 97.06% 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 8.59%.
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 better Profit Margin (5.85%) than 66.18% of its industry peers.
In the last couple of years the Profit Margin of LMT has declined.
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.
LMT has a Gross Margin of 8.25%. This is in the lower half of the industry: LMT underperforms 77.94% 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.
The number of shares outstanding for LMT has been reduced compared to 1 year ago.
The number of shares outstanding for LMT has been reduced compared to 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 3.03. This indicates that LMT is financially healthy and has little risk of bankruptcy at the moment.
LMT has a Altman-Z score (3.03) which is in line with its industry peers.
The Debt to FCF ratio of LMT is 6.50, which is on the high side as it means it would take LMT, 6.50 years of fcf income to pay off 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 has a worse Debt to Equity ratio (3.47) than 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.47 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.51
WACC9.83%
2.3 Liquidity
A Current Ratio of 0.98 indicates that LMT may have some problems paying its short term obligations.
LMT's Current ratio of 0.98 is on the low side compared to the rest of the industry. LMT is outperformed by 86.76% of its industry peers.
A Quick Ratio of 0.83 indicates that LMT may have some problems paying its short term obligations.
LMT has a worse Quick ratio (0.83) than 73.53% of its industry peers.
| 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%.
Measured over the past 5 years, LMT shows a small growth in Earnings Per Share. The EPS has been growing by 5.03% on average per year.
The Revenue has been growing slightly by 1.09% in the past year.
LMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.
EPS 1Y (TTM)4.27%
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.
The Revenue is expected to grow by 3.23% on average over the next years.
EPS Next Y-0.49%
EPS Next 2Y4.37%
EPS Next 3Y5.32%
EPS Next 5Y5.66%
Revenue Next Year4.28%
Revenue Next 2Y4.07%
Revenue Next 3Y3.99%
Revenue Next 5Y3.23%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 15.40 indicates a correct valuation of LMT.
Based on the Price/Earnings ratio, LMT is valued cheaply inside the industry as 95.59% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LMT to the average of the S&P500 Index (26.76), we can say LMT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.82, the valuation of LMT can be described as correct.
Based on the Price/Forward Earnings ratio, LMT is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
LMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
76.47% of the companies in the same industry are more expensive than LMT, based on the Enterprise Value to EBITDA ratio.
82.35% of the companies in the same industry are more expensive than LMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.36 | ||
| EV/EBITDA | 16.39 |
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)3.06
EPS Next 2Y4.37%
EPS Next 3Y5.32%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 3.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.19, 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 a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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
73.60% 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.
DP73.6%
EPS Next 2Y4.37%
EPS Next 3Y5.32%
447.2
+1.2 (+0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.34%
Inst Owner Change-1.36%
Ins Owners0.05%
Ins Owner Change12.01%
Market Cap104.41B
Analysts72.86
Price Target499.02 (11.59%)
Short Float %1.36%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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)-8.28%
PT rev (3m)-7.42%
EPS NQ rev (1m)-4.33%
EPS NQ rev (3m)-6.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 14.82 | ||
| P/S | 1.45 | ||
| P/FCF | 31.36 | ||
| P/OCF | 20.59 | ||
| P/B | 19.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.39 |
EPS(TTM)29.04
EY6.49%
EPS(NY)30.18
Fwd EY6.75%
FCF(TTM)14.26
FCFY3.19%
OCF(TTM)21.72
OCFY4.86%
SpS307.72
BVpS22.85
TBVpS-34.21
PEG (NY)N/A
PEG (5Y)3.06
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 | 3.03 |
F-Score5
WACC9.83%
ROIC/WACC1.51
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-0.49%
EPS Next 2Y4.37%
EPS Next 3Y5.32%
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 2Y4.07%
Revenue Next 3Y3.99%
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%