LOCKHEED MARTIN CORP (LOM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LOM - US5398301094 - Common Stock
503.3 EUR
+1 (+0.2%)
Taking everything into account, LOM scores 5 out of 10 in our fundamental rating. LOM was compared to 53 industry peers in the Aerospace & Defense industry. LOM has an average financial health and profitability rating. LOM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- LOM had positive earnings in the past year.
- LOM had a positive operating cash flow in the past year.
- In the past 5 years LOM has always been profitable.
- In the past 5 years LOM always reported a positive cash flow from operatings.
1.2 Ratios
- LOM has a better Return On Assets (6.97%) than 80.00% of its industry peers.
- LOM has a Return On Equity of 67.95%. This is amongst the best in the industry. LOM outperforms 98.18% of its industry peers.
- The Return On Invested Capital of LOM (14.02%) is better than 85.45% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LOM is significantly above the industry average of 9.24%.
- The last Return On Invested Capital (14.02%) for LOM is well below the 3 year average (18.86%), which needs to be investigated, but indicates that LOM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 67.95% | ||
| ROIC | 14.02% |
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 of 5.73%. This is comparable to the rest of the industry: LOM outperforms 47.27% of its industry peers.
- LOM's Profit Margin has declined in the last couple of years.
- LOM has a Operating Margin of 8.32%. This is comparable to the rest of the industry: LOM outperforms 52.73% of its industry peers.
- LOM's Operating Margin has declined in the last couple of years.
- LOM's Gross Margin of 8.25% is on the low side compared to the rest of the industry. LOM is outperformed by 85.45% of its industry peers.
- LOM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.32% | ||
| PM (TTM) | 5.73% | ||
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOM is creating value.
- Compared to 1 year ago, LOM has less shares outstanding
- The number of shares outstanding for LOM has been reduced compared to 5 years ago.
- Compared to 1 year ago, LOM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.45 indicates that LOM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.45, LOM is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
- The Debt to FCF ratio of LOM is 4.83, which is a neutral value as it means it would take LOM, 4.83 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of LOM (4.83) is better than 65.45% of its industry peers.
- A Debt/Equity ratio of 3.32 is on the high side and indicates that LOM has dependencies on debt financing.
- LOM has a Debt to Equity ratio of 3.32. This is amonst the worse of the industry: LOM underperforms 87.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.44
WACC9.73%
2.3 Liquidity
- LOM has a Current Ratio of 1.13. This is a normal value and indicates that LOM is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of LOM (1.13) is worse than 63.64% of its industry peers.
- A Quick Ratio of 0.97 indicates that LOM may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.97, LOM is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.55% 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 2.88% in the past year.
- The Revenue has been growing slightly by 3.50% on average over the past years.
EPS 1Y (TTM)4.55%
EPS 3Y5.96%
EPS 5Y5.03%
EPS Q2Q%2.21%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y1.95%
Revenue growth 5Y3.5%
Sales Q2Q%8.8%
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 4.82% on average per year.
- The Revenue is expected to grow by 2.92% on average over the next years.
EPS Next Y-20.4%
EPS Next 2Y3.3%
EPS Next 3Y4.5%
EPS Next 5Y4.82%
Revenue Next Year4.64%
Revenue Next 2Y4.5%
Revenue Next 3Y4.39%
Revenue Next 5Y2.92%
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
- LOM is valuated rather expensively with a Price/Earnings ratio of 20.25.
- Based on the Price/Earnings ratio, LOM is valued cheaply inside the industry as 96.36% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of LOM to the average of the S&P500 Index (27.21), we can say LOM is valued slightly cheaper.
- A Price/Forward Earnings ratio of 19.99 indicates a rather expensive valuation of LOM.
- Based on the Price/Forward Earnings ratio, LOM is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. LOM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 19.99 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LOM indicates a somewhat cheap valuation: LOM is cheaper than 65.45% of the companies listed in the same industry.
- LOM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LOM is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.77 | ||
| EV/EBITDA | 19.96 |
4.3 Compensation for Growth
- The decent profitability rating of LOM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.02
EPS Next 2Y3.3%
EPS Next 3Y4.5%
5. Dividend
5.1 Amount
- LOM has a Yearly Dividend Yield of 2.32%.
- LOM's Dividend Yield is rather good when compared to the industry average which is at 0.74. LOM pays more dividend than 98.18% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, LOM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
- The dividend of LOM is nicely growing with an annual growth rate of 7.21%!
Dividend Growth(5Y)7.21%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- LOM pays out 74.05% of its income as dividend. This is not a sustainable payout ratio.
- LOM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP74.05%
EPS Next 2Y3.3%
EPS Next 3Y4.5%
LOCKHEED MARTIN CORP / LOM.DE FAQ
Can you provide the ChartMill fundamental rating for LOCKHEED MARTIN CORP?
ChartMill assigns a fundamental rating of 5 / 10 to LOM.DE.
What is the valuation status of LOCKHEED MARTIN CORP (LOM.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to LOCKHEED MARTIN CORP (LOM.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for LOCKHEED MARTIN CORP?
LOCKHEED MARTIN CORP (LOM.DE) has a profitability rating of 6 / 10.
Can you provide the financial health for LOM stock?
The financial health rating of LOCKHEED MARTIN CORP (LOM.DE) is 5 / 10.
Is the dividend of LOCKHEED MARTIN CORP sustainable?
The dividend rating of LOCKHEED MARTIN CORP (LOM.DE) is 5 / 10 and the dividend payout ratio is 74.05%.