LOCKHEED MARTIN CORP (LMT) Stock Fundamental Analysis
NYSE:LMT - New York Stock Exchange, Inc. - US5398301094 - Common Stock - Currency: USD
Overall LMT gets a fundamental rating of 5 out of 10. We evaluated LMT against 65 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.
In the past year LMT had a positive cash flow from operations.
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
LMT has a better Return On Assets (9.71%) than 93.85% of its industry peers.
LMT's Return On Equity of 82.34% is amongst the best of the industry. LMT outperforms 100.00% of its industry peers.
The Return On Invested Capital of LMT (17.83%) is better than 98.46% of its industry peers.
LMT had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 8.39%.
| 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
LMT's Profit Margin of 7.66% is fine compared to the rest of the industry. LMT outperforms 70.77% of its industry peers.
In the last couple of years the Profit Margin of LMT has declined.
Looking at the Operating Margin, with a value of 10.29%, LMT is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
LMT's Operating Margin has declined in the last couple of years.
The Gross Margin of LMT (10.23%) is worse than 81.54% of its industry peers.
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
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 3.42 indicates that LMT is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.42, LMT perfoms like the industry average, outperforming 50.77% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 4.07, LMT is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
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 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.76
WACC10.13%
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.
The Current ratio of LMT (1.08) is worse than 81.54% of its industry peers.
A Quick Ratio of 0.91 indicates that LMT may have some problems paying its short term obligations.
LMT has a worse Quick ratio (0.91) than 70.77% 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.
The Earnings Per Share has been growing slightly by 5.03% on average over the past years.
The Revenue has been growing slightly by 3.12% 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)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.
LMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.22% yearly.
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.
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
Based on the Price/Earnings ratio of 16.41, the valuation of LMT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 93.85% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. LMT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.56 indicates a correct valuation of LMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, LMT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
LMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LMT is cheaper than 84.62% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LMT indicates a rather cheap valuation: LMT is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.06 | ||
| EV/EBITDA | 14.29 |
4.3 Compensation for Growth
The decent profitability rating of LMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.26
EPS Next 2Y4.33%
EPS Next 3Y5.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, LMT has a reasonable but not impressive dividend return.
LMT's Dividend Yield is rather good when compared to the industry average which is at 1.29. LMT pays more dividend than 96.92% of the companies in the same industry.
LMT's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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
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%
469.27
+12.67 (+2.77%)
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 Cap109.95B
Analysts73.79
Price Target539.58 (14.98%)
Short Float %1.02%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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)1.78%
Revenue beat(12)5
Avg Revenue beat(12)0.9%
Revenue beat(16)5
Avg Revenue beat(16)-0.15%
PT rev (1m)0.33%
PT rev (3m)-2.43%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-3.14%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 15.56 | ||
| P/S | 1.53 | ||
| P/FCF | 22.06 | ||
| P/OCF | 16.3 | ||
| P/B | 16.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.29 |
EPS(TTM)28.6
EY6.09%
EPS(NY)30.16
Fwd EY6.43%
FCF(TTM)21.28
FCFY4.53%
OCF(TTM)28.79
OCFY6.14%
SpS306.49
BVpS28.52
TBVpS-27.08
PEG (NY)N/A
PEG (5Y)3.26
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
WACC10.13%
ROIC/WACC1.76
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 Year25.67%
EBIT Next 3Y10.68%
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%