LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
NYSE:LMT - New York Stock Exchange, Inc. - US5398301094 - Common Stock - Currency: USD
Taking everything into account, LMT scores 5 out of 10 in our fundamental rating. LMT was compared to 65 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LMT was profitable.
LMT had a positive operating cash flow in the past year.
LMT had positive earnings in each of the past 5 years.
Each year in the past 5 years LMT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.71%, LMT belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
The Return On Equity of LMT (82.34%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 17.83%, LMT belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LMT is significantly above the industry average of 7.89%.
| 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 73.85% of the companies in the same industry.
LMT's Profit Margin has declined in the last couple of years.
LMT has a better Operating Margin (10.29%) than 67.69% of its industry peers.
In the last couple of years the Operating Margin of LMT has declined.
The Gross Margin of LMT (10.23%) is worse than 81.54% of its industry peers.
LMT's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LMT is creating value.
The number of shares outstanding for LMT has been reduced compared to 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
An Altman-Z score of 3.44 indicates that LMT is not in any danger for bankruptcy at the moment.
LMT has a Altman-Z score (3.44) which is in line with its industry peers.
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's Debt to FCF ratio of 4.07 is amongst the best of the industry. LMT outperforms 83.08% 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.
LMT's Debt to Equity ratio of 2.79 is on the low side compared to the rest of the industry. LMT is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.84
WACC9.68%
2.3 Liquidity
LMT has a Current Ratio of 1.08. This is a normal value and indicates that LMT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.08, LMT is not doing good in the industry: 81.54% of the companies in the same industry are doing better.
A Quick Ratio of 0.91 indicates that LMT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.91, LMT is doing worse than 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
LMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.51%.
The Earnings Per Share has been growing slightly by 5.03% on average over the past years.
LMT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.12%.
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)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
The Earnings Per Share is expected to grow by 5.65% on average over the next years.
The Revenue is expected to grow by 3.22% on average over the next years.
EPS Next Y-0.96%
EPS Next 2Y4.12%
EPS Next 3Y4.93%
EPS Next 5Y5.65%
Revenue Next Year4.36%
Revenue Next 2Y4.06%
Revenue Next 3Y3.82%
Revenue Next 5Y3.22%
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
LMT is valuated correctly with a Price/Earnings ratio of 16.53.
87.69% of the companies in the same industry are more expensive than LMT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.22, LMT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.74, the valuation of LMT can be described as correct.
Based on the Price/Forward Earnings ratio, LMT is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, LMT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 15.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LMT is valued a bit cheaper than the industry average as 75.38% 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 90.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.25 | ||
| EV/EBITDA | 14.52 |
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)3.29
EPS Next 2Y4.12%
EPS Next 3Y4.93%
5. Dividend
5.1 Amount
LMT has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.34, LMT pays a better dividend. On top of this LMT pays more dividend than 96.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, LMT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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.
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
55.88% of the earnings are spent on dividend by LMT. This is a bit on the high side, but may be sustainable.
LMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.88%
EPS Next 2Y4.12%
EPS Next 3Y4.93%
472.8
-4.92 (-1.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners74.93%
Inst Owner Change0.89%
Ins Owners0.04%
Ins Owner Change12.01%
Market Cap110.90B
Analysts70.71
Price Target537.79 (13.75%)
Short Float %0.99%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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)13.94%
Min EPS beat(2)13.65%
Max EPS beat(2)14.24%
EPS beat(4)4
Avg EPS beat(4)9.09%
Min EPS beat(4)3.56%
Max EPS beat(4)14.24%
EPS beat(8)7
Avg EPS beat(8)6.77%
EPS beat(12)8
Avg EPS beat(12)2.28%
EPS beat(16)12
Avg EPS beat(16)3.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-0.07%
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)-0.14%
PT rev (1m)-2.76%
PT rev (3m)-11.43%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-6.06%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 15.74 | ||
| P/S | 1.54 | ||
| P/FCF | 22.25 | ||
| P/OCF | 16.44 | ||
| P/B | 16.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.52 |
EPS(TTM)28.6
EY6.05%
EPS(NY)30.04
Fwd EY6.35%
FCF(TTM)21.25
FCFY4.49%
OCF(TTM)28.76
OCFY6.08%
SpS306.14
BVpS28.49
TBVpS-27.05
PEG (NY)N/A
PEG (5Y)3.29
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 | 3.44 |
F-Score6
WACC9.68%
ROIC/WACC1.84
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-0.96%
EPS Next 2Y4.12%
EPS Next 3Y4.93%
EPS Next 5Y5.65%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%4.47%
Revenue Next Year4.36%
Revenue Next 2Y4.06%
Revenue Next 3Y3.82%
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%