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Lockheed Martin

NYSE:LMT
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LMT
NYSE
$94B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

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. The last earnings update was 74 days ago. More info.


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LMT Share Price and Events
7 Day Returns
7.4%
NYSE:LMT
1.5%
US Aerospace & Defense
-0.1%
US Market
1 Year Returns
-1%
NYSE:LMT
-7.8%
US Aerospace & Defense
7.6%
US Market
LMT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lockheed Martin (LMT) 7.4% 13.3% 17.5% -1% 43.5% 105.6%
US Aerospace & Defense 1.5% 6.1% 12.4% -7.8% 41.2% 58.7%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • LMT outperformed the Aerospace & Defense industry which returned -7.8% over the past year.
  • LMT underperformed the Market in United States of America which returned 7.6% over the past year.
Price Volatility
LMT
Industry
5yr Volatility vs Market

LMT Value

 Is Lockheed Martin undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lockheed Martin to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lockheed Martin.

NYSE:LMT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:LMT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.916 (1 + (1- 21%) (14.97%))
1.016
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.016 * 5.96%)
8.79%

Discounted Cash Flow Calculation for NYSE:LMT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lockheed Martin is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:LMT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.79%)
2019 5,914.89 Analyst x9 5,437.15
2020 5,724.80 Analyst x10 4,837.38
2021 6,122.00 Analyst x4 4,755.19
2022 6,145.33 Analyst x3 4,387.78
2023 6,960.00 Analyst x1 4,568.08
2024 7,308.43 Est @ 5.01% 4,409.34
2025 7,624.40 Est @ 4.32% 4,228.44
2026 7,917.58 Est @ 3.85% 4,036.38
2027 8,195.55 Est @ 3.51% 3,840.63
2028 8,464.08 Est @ 3.28% 3,646.10
Present value of next 10 years cash flows $44,146.46
NYSE:LMT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $8,464.08 × (1 + 2.73%) ÷ (8.79% – 2.73%)
$143,566.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $143,566.53 ÷ (1 + 8.79%)10
$61,844.64
NYSE:LMT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $44,146.46 + $61,844.64
$105,991.10
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $105,991.10 / 282.81
$374.78
NYSE:LMT Discount to Share Price
Calculation Result
Value per share (USD) From above. $374.78
Current discount Discount to share price of $333.10
= -1 x ($333.10 - $374.78) / $374.78
11.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lockheed Martin is available for.
Intrinsic value
11%
Share price is $333.1 vs Future cash flow value of $374.78
Current Discount Checks
For Lockheed Martin to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lockheed Martin's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Lockheed Martin's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lockheed Martin's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lockheed Martin's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:LMT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $17.74
NYSE:LMT Share Price ** NYSE (2019-04-23) in USD $333.1
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 41 Publicly-Listed Aerospace & Defense Companies 22.29x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lockheed Martin.

NYSE:LMT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LMT Share Price ÷ EPS (both in USD)

= 333.1 ÷ 17.74

18.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lockheed Martin is good value based on earnings compared to the US Aerospace & Defense industry average.
  • Lockheed Martin is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Lockheed Martin's expected growth come at a high price?
Raw Data
NYSE:LMT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
9.9%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 34 Publicly-Listed Aerospace & Defense Companies 1.81x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NYSE:LMT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.78x ÷ 9.9%

1.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lockheed Martin is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Lockheed Martin's assets?
Raw Data
NYSE:LMT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $4.96
NYSE:LMT Share Price * NYSE (2019-04-23) in USD $333.1
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 56 Publicly-Listed Aerospace & Defense Companies 2.64x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:LMT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LMT Share Price ÷ Book Value per Share (both in USD)

= 333.1 ÷ 4.96

67.15x

* Primary Listing of Lockheed Martin.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lockheed Martin is overvalued based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Lockheed Martin's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Lockheed Martin has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LMT Future Performance

 How is Lockheed Martin expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lockheed Martin expected to grow at an attractive rate?
  • Lockheed Martin's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Lockheed Martin's earnings growth is positive but not above the United States of America market average.
  • Lockheed Martin's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:LMT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:LMT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 9.9%
NYSE:LMT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 4.8%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:LMT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:LMT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 68,814 7,952 7,629 2
2022-12-31 64,542 7,662 7,634 4
2021-12-31 62,967 7,708 7,251 11
2020-12-31 59,772 7,390 6,852 17
2019-12-31 56,937 7,511 5,553 9
NYSE:LMT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 53,762 3,138 5,046
2018-09-30 54,283 2,433 3,015
2018-06-24 52,306 3,826 2,505
2018-03-25 51,471 5,442 2,297
2017-12-31 49,960 6,476 1,890
2017-09-24 49,868 5,693 3,666
2017-06-25 49,078 5,259 3,792
2017-03-26 48,092 5,188 3,736
2016-12-31 47,290 5,189 3,661
2016-09-25 45,016 5,824 3,611
2016-06-26 43,525 6,021 3,278
2016-03-27 40,793 5,811 3,054

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lockheed Martin's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
  • Lockheed Martin's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:LMT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Lockheed Martin Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LMT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 27.91 29.55 26.26 2.00
2022-12-31 27.72 29.90 25.45 4.00
2021-12-31 26.26 28.11 23.91 11.00
2020-12-31 24.25 25.70 21.40 16.00
2019-12-31 19.71 20.30 19.35 14.00
NYSE:LMT Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 17.74
2018-09-30 10.58
2018-06-24 8.76
2018-03-25 8.01
2017-12-31 6.57
2017-09-24 12.68
2017-06-25 12.99
2017-03-26 12.64
2016-12-31 12.23
2016-09-25 11.92
2016-06-26 10.73
2016-03-27 9.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lockheed Martin is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Lockheed Martin's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lockheed Martin has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LMT Past Performance

  How has Lockheed Martin performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lockheed Martin's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lockheed Martin's year on year earnings growth rate has been positive over the past 5 years.
  • Lockheed Martin's 1-year earnings growth exceeds its 5-year average (167% vs 0.9%)
  • Lockheed Martin's earnings growth has exceeded the US Aerospace & Defense industry average in the past year (167% vs 29.2%).
Earnings and Revenue History
Lockheed Martin's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lockheed Martin Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LMT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 53,762.00 5,046.00 67.00
2018-09-30 54,283.00 3,015.00 -33.00
2018-06-24 52,306.00 2,505.00 2.00
2018-03-25 51,471.00 2,297.00
2017-12-31 49,960.00 1,890.00 109.00
2017-09-24 49,868.00 3,666.00 82.00
2017-06-25 49,078.00 3,792.00 27.00
2017-03-26 48,092.00 3,736.00
2016-12-31 47,290.00 3,661.00 123.00
2016-09-25 45,016.00 3,611.00
2016-06-26 43,525.00 3,278.00
2016-03-27 40,793.00 3,054.00
2015-12-31 40,536.00 3,126.00
2015-09-27 41,546.00 3,213.00
2015-06-28 42,600.00 3,345.00
2015-03-29 45,061.00 3,559.00
2014-12-31 39,946.00 3,253.00
2014-09-28 44,603.00 3,198.00
2014-06-29 44,836.00 3,152.00
2014-03-30 44,938.00 3,122.00
2013-12-31 45,358.00 2,950.00
2013-09-29 45,924.00 3,031.00
2013-06-30 46,446.00 2,916.00
2013-03-31 46,959.00 2,838.00
2012-12-31 47,182.00 2,745.00
2012-09-30 47,294.00 2,874.00
2012-06-24 47,544.00 2,812.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Lockheed Martin made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Lockheed Martin used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • Lockheed Martin has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lockheed Martin's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lockheed Martin has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LMT Health

 How is Lockheed Martin's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lockheed Martin's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lockheed Martin is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lockheed Martin's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Lockheed Martin's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lockheed Martin Company Filings, last reported 3 months ago.

NYSE:LMT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,449.00 14,104.00 772.00
2018-09-30 1,002.00 14,726.00 897.00
2018-06-24 479.00 14,229.00 1,181.00
2018-03-25 -111.00 14,223.00 2,393.00
2017-12-31 -776.00 14,263.00 2,861.00
2017-09-24 2,175.00 14,268.00 2,941.00
2017-06-25 1,349.00 14,283.00 2,452.00
2017-03-26 1,585.00 14,276.00 2,216.00
2016-12-31 1,606.00 14,282.00 1,837.00
2016-09-25 2,430.00 14,304.00 2,895.00
2016-06-26 2,997.00 14,809.00 1,269.00
2016-03-27 3,177.00 15,276.00 1,452.00
2015-12-31 3,097.00 15,261.00 1,090.00
2015-09-27 2,813.00 8,412.00 3,300.00
2015-06-28 2,982.00 8,402.00 3,202.00
2015-03-29 3,520.00 8,404.00 3,486.00
2014-12-31 3,400.00 6,142.00 1,446.00
2014-09-28 4,574.00 6,165.00 2,963.00
2014-06-29 4,319.00 6,169.00 3,436.00
2014-03-30 4,800.00 6,152.00 3,264.00
2013-12-31 4,918.00 6,152.00 2,617.00
2013-09-29 1,277.00 6,156.00 2,661.00
2013-06-30 694.00 6,140.00 2,845.00
2013-03-31 304.00 6,304.00 3,065.00
2012-12-31 39.00 6,308.00 1,898.00
2012-09-30 2,442.00 6,524.00 4,652.00
2012-06-24 2,204.00 6,493.00 3,802.00
  • Lockheed Martin's level of debt (973.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (125.1% vs 973.4% today).
  • Debt is well covered by operating cash flow (22.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.8x coverage).
X
Financial health checks
We assess Lockheed Martin's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lockheed Martin has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LMT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.64%
Current annual income from Lockheed Martin dividends. Estimated to be 2.97% next year.
If you bought $2,000 of Lockheed Martin shares you are expected to receive $53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lockheed Martin's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Lockheed Martin's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:LMT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:LMT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 13.20 1.00
2022-12-31 11.16 3.00
2021-12-31 10.64 9.00
2020-12-31 9.74 13.00
2019-12-31 8.94 13.00
NYSE:LMT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-09-27 8.800 2.946
2018-06-28 8.000 2.492
2018-04-25 8.000 2.538
2018-01-24 8.000 2.330
2017-09-28 8.000 2.517
2017-06-22 7.280 2.460
2017-04-26 7.280 2.638
2017-01-26 7.280 2.740
2016-09-22 7.280 2.912
2016-06-23 6.600 2.642
2016-04-27 6.600 2.760
2016-01-28 6.600 3.016
2015-09-24 6.600 3.065
2015-06-25 6.000 2.967
2015-04-23 6.000 3.141
2015-01-29 6.000 3.018
2014-09-25 6.000 3.211
2014-06-26 5.320 3.147
2014-04-24 5.320 3.248
2014-01-23 5.320 3.349
2013-09-26 5.320 3.863
2013-06-27 4.600 3.821
2013-04-25 4.600 4.404
2013-01-30 4.600 5.036
2012-09-27 4.600 4.976
2012-06-28 4.000 4.440
2012-04-26 4.000 4.720
2012-01-27 4.000 4.520
2011-09-22 4.000 5.172
2011-06-23 3.000 4.004
2011-04-28 3.000 3.802
2011-01-27 3.000 3.746
2010-09-23 3.000 4.216
2010-06-24 2.520 3.448
2010-04-22 2.520 3.101
2010-01-28 2.520 3.127
2009-09-24 2.520 3.342
2009-06-25 2.280 2.972
2009-04-24 2.280 2.795

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Lockheed Martin's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Lockheed Martin's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lockheed Martin afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lockheed Martin has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LMT Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Marillyn Hewson
COMPENSATION $21,516,613
AGE 64
TENURE AS CEO 6.3 years
CEO Bio

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 served as an Executive Vice President of the Electronic Systems at Lockheed Martin Corporation from January 1, 2010 to November 2012 and served as its Chief Operating Officer from November 2012 to December 2012. She served as Executive Vice President of Lockheed Martin Electronic Systems. She served as the President of Lockheed Martin Systems Integration -Owego, a subsidiary at Lockheed Martin Corporation from September 2008 to December 2009. She served as the President of Lockheed Martin Logistics Services of Lockheed Martin Corporation since November 2006 and also served as its Senior Vice President. She served as the President and General Manager of Lockheed Martin Commercial Engine Solutions, a joint venture between Lockheed Martin Aircraft and Logistics Centers, GE-Aviation and Rolls-Royce and a center of excellence for military engine maintenance, repair and overhaul. She served as the President of Logistics Services for Lockheed Martin Corporation from January 2007 to March 2007. She served as an Executive Vice President of Global Sustainment for Aeronautics of Lockheed Martin Aeronautics Company from February 2007 to August 2008 where she was responsible for ensuring that customers around the world receive best-value sustainment services and total life cycle support for their aircraft. She served in a number of executive positions for Lockheed Martin Corporation and served as its Senior Vice President of Corporate Shared Services since May 2001, Corporate Vice President of Global Supply Chain Management since August 2000 and Vice President of Corporate Internal Audit since September 1998. She joined Lockheed Aeronautical Systems Company, Marietta, Georgia in 1983 and served as its Senior Industrial Engineer. She held a variety of increasingly responsible management positions in industrial engineering, operations control and business management until 1993, when she served as Director of Operations Control of Lockheed Aeronautical Systems Company. She served as Director of Commercial Practices of Lockheed Aeronautical Systems Company since 1995. She served as Director of Consolidated Material Systems and Business Management of Aeronautics Material Management Center in Fort Worth, Texas since September 1995. She has served in key leadership positions in the aerospace industry. She served as the Chairman of Sandia Corporation from 2010 until 2013. She served as a Director of Sandia Corporation since May 2010. She has been a Director of DuPont do Brasil S.A. since October 2007. She serves as a Director of Catalyst Inc. and Exostar Corporation. Ms. Hewson was Chief Executive Officer and President of Lockheed Martin from January 2013 to December 2013 She has been a Director of Lockheed Martin Corporation since November 9, 2012. She served as an Independent Director of E. I. du Pont de Nemours and Company since October 2007 to August 31, 2017. She served as a Director of Carpenter Technology Corporation from 2002 to 2006. She served as a Director of Lockheed Martin Australia Pty Ltd. In September 2013, she was appointed by President Barack Obama to the President’s Export Council, the Principal National Advisory Committee on international trade. She serves as Vice Chairman of the Aerospace Industries Association and is an Associate Fellow of the American Institute of Aeronautics and Astronautics. She had been Director at DowDuPont Inc. since August 31, 2017 until March 31, 2019. She serves on the Board of Directors of the Congressional Medal of Honor Foundation, the Board of Governors of the USO, the Board of the National Geographic Education Foundation, the University of Alabama’s Culverhouse College of Commerce and Business Administration Board of Visitors and the Board of Directors of Catalyst. She is also a Director of the Atlantic Council’s International Advisory Board and a Member of The Business Roundtable, an Association of Chief Executive Officers of leading U.S. companies. Ms. Hewson also serves on the Board of Trustees for King Abdullah University of Science and Technology in the Kingdom of Saudi Arabia and on the Board of Trustees for Khalifa University of Science and Technology in the United Arab Emirates. Ms. Hewson has been selected by Fortune magazine as one of the “50 Most Powerful Women in Business” for the past five years and was named #4 in 2014. Ms. Hewson was named #21 on the Forbes “World’s 100 Most Powerful Women” list in 2014. Having served for more than three decades in executive and operational roles of a global security, aerospace and advanced technology company with worldwide interests, Ms. Hewson has vast experience, insight and knowledge of the complexities of global business management, strategic planning, cybersecurity, finance, supply chain, leveraged services, manufacturing, government relations and human capital management, including corporate governance and audit expertise derived from service on boards of other multinational corporations and non-profit organizations. Ms. Hewson holds Bachelor’s Science in Business Administration from University of Alabama, Master of Arts in Economics from University of Alabama, Attended Columbia Business School and Executive Development Program from Harvard Business School.

CEO Compensation
  • Marillyn's compensation has been consistent with company performance over the past year.
  • Marillyn's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Lockheed Martin management team in years:

4.4
Average Tenure
58
Average Age
  • The tenure for the Lockheed Martin management team is about average.
Management Team

Marillyn Hewson

TITLE
Chairman
COMPENSATION
$22M
AGE
64
TENURE
6.3 yrs

Dale Bennett

TITLE
Executive Vice President of Rotary & Mission Systems
COMPENSATION
$7M
AGE
61
TENURE
6.3 yrs

Rick Edwards

TITLE
Executive Vice President of International
COMPENSATION
$6M
AGE
61
TENURE
6.3 yrs

Rick Ambrose

TITLE
Executive Vice President of Space
COMPENSATION
$6M
AGE
59
TENURE
6 yrs

Frank St. John

TITLE
Executive Vice President of Missiles & Fire Control Business
COMPENSATION
$6M
AGE
51
TENURE
1.3 yrs

Ken Possenriede

TITLE
Executive VP & CFO
AGE
57
TENURE
0.2 yrs

Rod Makoske

TITLE
Senior Vice President of Corporate Engineering
TENURE
4.2 yrs

Brian Colan

TITLE
VP, Controller & Chief Accounting Officer
AGE
57
TENURE
4.7 yrs

Keoki Jackson

TITLE
Chief Technology Officer
AGE
48
TENURE
4.2 yrs

Greg Gardner

TITLE
Vice President of Investor Relations
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Lockheed Martin board of directors in years:

5.2
Average Tenure
66
Average Age
  • The tenure for the Lockheed Martin board of directors is about average.
Board of Directors

Marillyn Hewson

TITLE
Chairman
COMPENSATION
$22M
AGE
64
TENURE
5.3 yrs

Nolan Archibald

TITLE
Lead Director
COMPENSATION
$375K
AGE
74
TENURE
4 yrs

Jim Ellis

TITLE
Independent Director
COMPENSATION
$332K
AGE
70
TENURE
14.4 yrs

Thomas Falk

TITLE
Independent Director
COMPENSATION
$350K
AGE
59
TENURE
8.8 yrs

Dan Akerson

TITLE
Independent Director
COMPENSATION
$340K
AGE
69
TENURE
5.2 yrs

Joseph Ralston

TITLE
Independent Director
COMPENSATION
$331K
AGE
74
TENURE
16 yrs

David Burritt

TITLE
Independent Director
COMPENSATION
$320K
AGE
63
TENURE
11 yrs

Bruce Carlson

TITLE
Independent Director
COMPENSATION
$312K
AGE
68
TENURE
3.8 yrs

Ilene Gordon

TITLE
Independent Director
COMPENSATION
$323K
AGE
64
TENURE
2.8 yrs

Jeh Johnson

TITLE
Independent Director
COMPENSATION
$310K
AGE
60
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • Lockheed Martin insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Feb 19 Sell Maryanne Lavan Individual 26. Feb 19 26. Feb 19 -5,515 $306.84 $-1,689,305
28. Feb 19 Sell Frank St. John Individual 27. Feb 19 27. Feb 19 -1,900 $305.42 $-580,307
27. Feb 19 Buy Ilene Gordon Individual 25. Feb 19 25. Feb 19 750 $306.04 $229,533
20. Feb 19 Sell Brian Colan Individual 19. Feb 19 19. Feb 19 -4,000 $305.04 $-1,218,244
08. Feb 19 Sell Richard Ambrose Individual 06. Feb 19 06. Feb 19 -6,647 $301.83 $-2,002,975
08. Feb 19 Sell Michele Evans Individual 07. Feb 19 07. Feb 19 -1,169 $298.78 $-349,274
09. Nov 18 Sell Bruce Tanner Individual 07. Nov 18 07. Nov 18 -11,203 $309.06 $-3,456,030
30. Jul 18 Sell Marillyn Hewson Individual 27. Jul 18 27. Jul 18 -25,000 $324.60 $-8,091,875
26. Jul 18 Sell Maryanne Lavan Individual 25. Jul 18 25. Jul 18 -7,250 $324.76 $-2,346,391
X
Management checks
We assess Lockheed Martin's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lockheed Martin has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LMT News

Simply Wall St News

Have Insiders Been Selling Lockheed Martin Corporation (NYSE:LMT) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Lockheed Martin Corporation (NYSE:LMT). … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price … All up, insiders sold more shares in Lockheed Martin than they bought, over the last year

Simply Wall St -

Do You Know What Lockheed Martin Corporation's (NYSE:LMT) P/E Ratio Means?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate Lockheed Martin's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

How Does Lockheed Martin Corporation (NYSE:LMT) Fare As A Dividend Stock?

Lockheed Martin Corporation (NYSE:LMT) has pleased shareholders over the past 10 years, by paying out dividends. … The stock currently pays out a dividend yield of 2.9%, and has a market cap of US$85b. … Let's dig deeper into whether Lockheed Martin should have a place in your portfolio.

Simply Wall St -

What Are Analysts Saying About The Future Of Lockheed Martin Corporation's (NYSE:LMT)?

Looking at Lockheed Martin Corporation's (NYSE:LMT) earnings update in December 2018,. … with earnings expected to grow by 9.9% in the upcoming year … the past 5-year average growth rate of 0.9%

Simply Wall St -

Did You Miss Lockheed Martin's (NYSE:LMT) 86% Share Price Gain?

For example, the Lockheed Martin Corporation (NYSE:LMT) share price is up 86% in the last 5 years, clearly besting than the market return of around 41% (ignoring dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Over half a decade, Lockheed Martin managed to grow its earnings per share at 14% a year.

Simply Wall St -

Is Lockheed Martin Corporation (NYSE:LMT) Potentially Undervalued?

led the NYSE gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

Estimating The Intrinsic Value Of Lockheed Martin Corporation (NYSE:LMT)

Help shape the future of investing tools and receive a $20 prize! … by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF)

Simply Wall St -

Lockheed Martin Corporation (NYSE:LMT): A Fundamentally Attractive Investment

Help shape the future of investing tools and you could win a $250 gift card! … Lockheed Martin Corporation (NYSE:LMT) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects.

Simply Wall St -

What Do Analysts Think About Lockheed Martin Corporation's (NYSE:LMT) Earnings Outlook?

Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … Lockheed Martin Corporation's (NYSE:LMT) most recent earnings announcement in December 2018a

Simply Wall St -

Does Lockheed Martin Corporation's (NYSE:LMT) CEO Pay Matter?

Marillyn Hewson has been the CEO of Lockheed Martin Corporation (NYSE:LMT) since 2013. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Marillyn Hewson's Compensation Compare With Similar Sized Companies?

Simply Wall St -

LMT Company Info

Description

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. It operates through four segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The MFC segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; manned and unmanned ground vehicles; and energy management solutions. The RMS segment offers military and commercial helicopters; ship and submarine mission and combat systems; mission systems and sensors for rotary and fixed-wing aircraft; sea and land-based missile defense systems; radar systems; the Littoral combat ships; simulation and training services; and unmanned systems and technologies. It also supports government customers in cybersecurity; and delivers communications, and command and control capabilities through mission solutions for defense applications. The Space segment provides satellites, strategic and defensive missile systems, and space transportation systems; and classified systems and services in support of national security systems. This segment also offers network-enabled situational awareness services; and integrates space and ground-based systems to help its customers gather, analyze, and securely distribute critical intelligence data. Lockheed Martin Corporation was founded in 1995 and is headquartered in Bethesda, Maryland.

Details
Name: Lockheed Martin Corporation
LMT
Exchange: NYSE
Founded: 1995
$94,203,240,872
282,807,688
Website: http://www.lockheedmartin.com
Address: Lockheed Martin Corporation
6801 Rockledge Drive,
Bethesda,
Maryland, 20817,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LMT Common Stock New York Stock Exchange US USD 15. Mar 1995
DB LOM Common Stock Deutsche Boerse AG DE EUR 15. Mar 1995
XTRA LOM Common Stock XETRA Trading Platform DE EUR 15. Mar 1995
LSE 0R3E Common Stock London Stock Exchange GB USD 15. Mar 1995
SWX LMT Common Stock SIX Swiss Exchange CH CHF 15. Mar 1995
WBAG LMT Common Stock Wiener Boerse AG AT EUR 15. Mar 1995
BMV LMT * Common Stock Bolsa Mexicana de Valores MX MXN 15. Mar 1995
BOVESPA LMTB34 BDR EACH REPR 1 COM USD1 Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2012
BASE LMT CEDEAR EACH 1 REPR 1 ORD USD1 Buenos Aires Stock Exchange AR ARS 26. Nov 2002
Number of employees
Current staff
Staff numbers
105,000
Lockheed Martin employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:39
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/02/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.