LOCKHEED MARTIN CORP (LOM.DE) Stock Fundamental Analysis
Europe - FRA:LOM - US5398301094 - Common Stock
430.6 EUR
+3.35 (+0.78%)
We assign a fundamental rating of 5 out of 10 to LOM. LOM was compared to 43 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of LOM get a neutral evaluation. Nothing too spectacular is happening here. LOM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LOM was profitable.
In the past year LOM had a positive cash flow from operations.
LOM had positive earnings in each of the past 5 years.
LOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LOM has a better Return On Assets (7.14%) than 83.72% of its industry peers.
LOM has a better Return On Equity (78.82%) than 97.67% of its industry peers.
The Return On Invested Capital of LOM (14.80%) is better than 83.72% of its industry peers.
LOM had an Average Return On Invested Capital over the past 3 years of 18.86%. This is significantly above the industry average of 9.61%.
The 3 year average ROIC (18.86%) for LOM 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
LOM has a Profit Margin (5.85%) which is in line with its industry peers.
LOM's Profit Margin has declined in the last couple of years.
LOM has a Operating Margin of 8.30%. This is comparable to the rest of the industry: LOM outperforms 51.16% of its industry peers.
In the last couple of years the Operating Margin of LOM has declined.
LOM's Gross Margin of 8.25% is on the low side compared to the rest of the industry. LOM is outperformed by 86.05% of its industry peers.
In the last couple of years the Gross Margin of LOM 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LOM is creating value.
The number of shares outstanding for LOM has been reduced compared to 1 year ago.
Compared to 5 years ago, LOM has less shares outstanding
The debt/assets ratio for LOM is higher compared to a year ago.
2.2 Solvency
LOM has an Altman-Z score of 3.18. This indicates that LOM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LOM (3.18) is better than 69.77% of its industry peers.
LOM has a debt to FCF ratio of 6.50. This is a slightly negative value and a sign of low solvency as LOM would need 6.50 years to pay back of all of its debts.
The Debt to FCF ratio of LOM (6.50) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.47 is on the high side and indicates that LOM has dependencies on debt financing.
LOM has a Debt to Equity ratio of 3.47. This is amonst the worse of the industry: LOM underperforms 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.47 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.54
WACC9.63%
2.3 Liquidity
A Current Ratio of 0.98 indicates that LOM may have some problems paying its short term obligations.
The Current ratio of LOM (0.98) is worse than 79.07% of its industry peers.
A Quick Ratio of 0.83 indicates that LOM may have some problems paying its short term obligations.
The Quick ratio of LOM (0.83) is better than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
LOM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.27%.
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, LOM 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
Based on estimates for the next years, LOM will show a small growth in Earnings Per Share. The EPS will grow by 5.66% on average per year.
The Revenue is expected to grow by 3.23% on average over the next years.
EPS Next Y-20.26%
EPS Next 2Y2.93%
EPS Next 3Y4.61%
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
A Price/Earnings ratio of 17.43 indicates a rather expensive valuation of LOM.
Based on the Price/Earnings ratio, LOM is valued cheaply inside the industry as 97.67% of the companies are valued more expensively.
LOM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.24 indicates a rather expensive valuation of LOM.
LOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. LOM is cheaper than 95.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LOM to the average of the S&P500 Index (23.32), we can say LOM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 17.24 |
4.2 Price Multiples
LOM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LOM is cheaper than 79.07% of the companies in the same industry.
65.12% of the companies in the same industry are more expensive than LOM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.5 | ||
| EV/EBITDA | 18.08 |
4.3 Compensation for Growth
LOM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.46
EPS Next 2Y2.93%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.71%, LOM has a reasonable but not impressive dividend return.
LOM's Dividend Yield is rather good when compared to the industry average which is at 1.27. LOM pays more dividend than 95.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, LOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
On average, the dividend of LOM grows each year by 7.21%, which is quite nice.
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 LOM. This is not a sustainable payout ratio.
The dividend of LOM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP73.6%
EPS Next 2Y2.93%
EPS Next 3Y4.61%
FRA:LOM (10/3/2025, 7:00:00 PM)
430.6
+3.35 (+0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap100.53B
Analysts71.85
Price Target416.93 (-3.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend11.06
Dividend Growth(5Y)7.21%
DP73.6%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)-1.93%
PT rev (3m)-12.16%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)-20.18%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 17.24 | ||
| P/S | 1.64 | ||
| P/FCF | 35.5 | ||
| P/OCF | 23.3 | ||
| P/B | 22.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.08 |
EPS(TTM)24.71
EY5.74%
EPS(NY)24.98
Fwd EY5.8%
FCF(TTM)12.13
FCFY2.82%
OCF(TTM)18.48
OCFY4.29%
SpS261.8
BVpS19.44
TBVpS-29.11
PEG (NY)N/A
PEG (5Y)3.46
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 | 3.18 |
F-Score5
WACC9.63%
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-20.26%
EPS Next 2Y2.93%
EPS Next 3Y4.61%
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 Year10.51%
EBIT Next 3Y10.44%
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%