NYSE:LMT

Stock Analysis Report

Executive Summary

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide.

Snowflake

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Lockheed Martin's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LMT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

LMT

1.4%

US Aerospace & Defense

0.4%

US Market


1 Year Return

27.8%

LMT

19.0%

US Aerospace & Defense

13.1%

US Market

Return vs Industry: LMT exceeded the US Aerospace & Defense industry which returned 19% over the past year.

Return vs Market: LMT exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

LMTIndustryMarket
7 Day2.1%1.4%0.4%
30 Day1.3%3.6%4.0%
90 Day3.8%7.1%7.4%
1 Year31.2%27.8%21.4%19.0%15.6%13.1%
3 Year59.0%47.2%51.6%43.4%48.2%38.6%
5 Year138.8%108.4%93.4%74.9%62.6%44.6%

Price Volatility Vs. Market

How volatile is Lockheed Martin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lockheed Martin undervalued compared to its fair value and its price relative to the market?

14.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LMT ($387.69) is trading below our estimate of fair value ($452.31)

Significantly Below Fair Value: LMT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LMT is good value based on its PE Ratio (18.3x) compared to the Aerospace & Defense industry average (22.3x).

PE vs Market: LMT is poor value based on its PE Ratio (18.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: LMT is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: LMT is overvalued based on its PB Ratio (28x) compared to the US Aerospace & Defense industry average (2.5x).


Next Steps

Future Growth

How is Lockheed Martin forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LMT's forecast earnings growth (6.9% per year) is above the savings rate (2.7%).

Earnings vs Market: LMT's earnings (6.9% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: LMT's earnings are forecast to grow, but not significantly.

Revenue vs Market: LMT's revenue (4.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LMT's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LMT's Return on Equity is forecast to be very high in 3 years time (97.2%).


Next Steps

Past Performance

How has Lockheed Martin performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LMT has high quality earnings.

Growing Profit Margin: LMT's current net profit margins (10.3%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: LMT's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: LMT's earnings growth over the past year (101.5%) exceeds its 5-year average (9.7% per year).

Earnings vs Industry: LMT earnings growth over the past year (101.5%) exceeded the Aerospace & Defense industry 8.1%.


Return on Equity

High ROE: Whilst LMT's Return on Equity (152.02%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lockheed Martin's financial position?


Financial Position Analysis

Short Term Liabilities: LMT's short term assets ($19.8B) exceeds its short term liabilities ($15.5B)

Long Term Liabilities: LMT's short term assets (19.8B) do not cover its long term liabilities (29.8B)


Debt to Equity History and Analysis

Debt Level: LMT's debt to equity ratio (344.2%) is considered high

Reducing Debt: LMT's debt to equity ratio has increased from 135.5% to 344.2% over the past 5 years.

Debt Coverage: LMT's debt is well covered by operating cash flow (59.3%).

Interest Coverage: LMT's interest payments on its debt are well covered by EBIT (12.3x coverage).


Balance Sheet

Inventory Level: LMT has a high level of physical assets or inventory.

Debt Coverage by Assets: LMT's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is Lockheed Martin's current dividend yield, its reliability and sustainability?

2.48%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Lockheed Martin before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: LMT's dividend (2.48%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: LMT's dividend (2.48%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: LMT's dividends per share have been stable in the past 10 years.

Growing Dividend: LMT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.5%), LMT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LMT's dividends in 3 years are forecast to be well covered by earnings (39.6% payout ratio).


Next Steps

Management

What is the CEO of Lockheed Martin's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Marillyn Hewson (65yo)

6.8yrs

Tenure

US$21,516,613

Compensation

Ms. Marillyn A. Hewson has been the Chief Executive Officer and President of Lockheed Martin Corporation since January 1, 2013 and has been its Chairman since January 1, 2014. Ms. Hewson has been an Indepe ...


CEO Compensation Analysis

Compensation vs Market: Marillyn's total compensation ($USD21.52M) is above average for companies of similar size in the US market ($USD10.97M).

Compensation vs Earnings: Marillyn's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.8yrs

Average Tenure

59yo

Average Age

Experienced Management: LMT's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

64.5yo

Average Age

Experienced Board: LMT's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$509,53412 Aug 19
James Taiclet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,354
Max PriceUS$376.32
SellUS$727,70126 Jul 19
Kenneth Possenriede
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,000
Max PriceUS$363.85
SellUS$7,198,22026 Jul 19
Marillyn Hewson
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares19,500
Max PriceUS$369.91
SellUS$366,60026 Jul 19
Maryanne Lavan
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,003
Max PriceUS$365.50
SellUS$693,44325 Apr 19
David Burritt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,100
Max PriceUS$330.21
SellUS$1,689,30528 Feb 19
Maryanne Lavan
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares5,515
Max PriceUS$306.84
SellUS$580,30728 Feb 19
Frank St. John
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Rotary & Mission Systems
Shares1,900
Max PriceUS$305.42
BuyUS$229,53327 Feb 19
Ilene Gordon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares750
Max PriceUS$306.04
SellUS$1,218,24420 Feb 19
Brian Colan
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer
Shares4,000
Max PriceUS$305.04
SellUS$349,27408 Feb 19
Michele Evans
EntityIndividual
Shares1,169
Max PriceUS$298.78
SellUS$2,002,97508 Feb 19
Richard Ambrose
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Space
Shares6,647
Max PriceUS$301.83

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ken Possenriede (58yo)

    Executive VP & CFO

    • Tenure: 0.8yrs
  • Marillyn Hewson (65yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: US$21.52m
  • Maryanne Lavan (60yo)

    Senior VP

    • Tenure: 9.4yrs
    • Compensation: US$6.65m
  • Dale Bennett (62yo)

    Strategic Advisor

    • Tenure: 0.3yrs
    • Compensation: US$6.69m
  • Rick Ambrose (60yo)

    Executive Vice President of Space

    • Tenure: 6.6yrs
    • Compensation: US$6.29m
  • Rod Makoske

    Senior Vice President of Corporate Engineering

    • Tenure: 4.8yrs
  • Brian Colan (58yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 5.3yrs
  • Keoki Jackson (49yo)

    Chief Technology Officer

    • Tenure: 4.8yrs
  • Greg Gardner

    Vice President of Investor Relations

    • Tenure: 2.9yrs
  • Frank St. John (52yo)

    Executive Vice President of Rotary & Mission Systems

    • Tenure: 1.8yrs
    • Compensation: US$6.07m

Board Members

  • Dan Akerson (70yo)

    Independent Lead Director

    • Tenure: 0.6yrs
    • Compensation: US$340.15k
  • Jim Taiclet (58yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$310.00k
  • Thomas Falk (60yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$350.45k
  • Ilene Gordon (65yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$322.53k
  • Marillyn Hewson (65yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: US$21.52m
  • David Burritt (64yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$320.20k
  • Jim Ellis (71yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$331.87k
  • Bruce Carlson (69yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$311.84k
  • Vicki Hollub (59yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$155.00k
  • Jeh Johnson (61yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$310.00k

Company Information

Lockheed Martin Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lockheed Martin Corporation
  • Ticker: LMT
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$109.356b
  • Shares outstanding: 282.07m
  • Website: https://www.lockheedmartin.com

Number of Employees


Location

  • Lockheed Martin Corporation
  • 6801 Rockledge Drive
  • Bethesda
  • Maryland
  • 20817
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LMTNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1995
LOMDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1995
LOMXTRA (XETRA Trading Platform)YesCommon StockDEEURMar 1995
LMT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1995
LMTSWX (SIX Swiss Exchange)YesCommon StockCHCHFMar 1995
0R3ELSE (London Stock Exchange)YesCommon StockGBUSDMar 1995
LMTWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1995
LMTBASE (Buenos Aires Stock Exchange)CEDEAR EACH 1 REPR 1 ORD USD1ARARSNov 2002
LMTB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD1BRBRLAug 2012

Biography

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 23:41
End of Day Share Price2019/11/13 00:00
Earnings2019/09/29
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.