Lockheed Martin Corporation
Lockheed Martin Corporation Fundamental Analysis
Lockheed Martin Corporation (LMT) shows moderate financial fundamentals with a PE ratio of 30.35, profit margin of 6.68%, and ROE of 80.53%. The company generates $75.2B in annual revenue with moderate year-over-year growth of 5.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LMT's fundamental strength across five key dimensions:
Efficiency Score
WeakLMT struggles to generate sufficient returns from assets.
Valuation Score
ModerateLMT shows balanced valuation metrics.
Growth Score
ModerateLMT shows steady but slowing expansion.
Financial Health Score
ModerateLMT shows balanced financial health with some risks.
Profitability Score
ModerateLMT maintains healthy but balanced margins.
Key Financial Metrics
Is LMT Expensive or Cheap?
P/E Ratio
LMT trades at 30.35 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LMT's PEG of 1.52 indicates fair valuation.
Price to Book
The market values Lockheed Martin Corporation at 22.66 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.47 times EBITDA. This signals the market has high growth expectations.
How Well Does LMT Make Money?
Net Profit Margin
For every $100 in sales, Lockheed Martin Corporation keeps $6.68 as profit after all expenses.
Operating Margin
Core operations generate 10.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $80.53 in profit for every $100 of shareholder equity.
ROA
Lockheed Martin Corporation generates $8.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lockheed Martin Corporation produces operating cash flow of $8.58B, showing steady but balanced cash generation.
Free Cash Flow
Lockheed Martin Corporation produces free cash flow of $6.92B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $29.92 in free cash annually.
FCF Yield
LMT converts 4.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
22.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.81
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How LMT Stacks Against Its Sector Peers
| Metric | LMT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.35 | 26.49 | Worse (Expensive) |
| ROE | 80.53% | 1307.00% | Weak |
| Net Margin | 6.68% | -5131.00% (disorted) | Weak |
| Debt/Equity | 3.23 | 0.81 | Weak (High Leverage) |
| Current Ratio | 1.09 | 10.48 | Neutral |
| ROA | 8.38% | -1549793.00% (disorted) | Weak |
LMT outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lockheed Martin Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.56%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
1.36%
Industry Style: Cyclical, Value, Infrastructure
GrowingFCF CAGR
12.85%
Industry Style: Cyclical, Value, Infrastructure
High Growth