NYSE:LMT

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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 Analysis

Established dividend payer with proven track record.


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

-2.3%

LMT

1.0%

US Aerospace & Defense

1.0%

US Market


1 Year Return

8.9%

LMT

-23.1%

US Aerospace & Defense

4.1%

US Market

Return vs Industry: LMT exceeded the US Aerospace & Defense industry which returned -23.6% over the past year.

Return vs Market: LMT exceeded the US Market which returned 3.7% over the past year.


Shareholder returns

LMTIndustryMarket
7 Day-2.3%1.0%1.0%
30 Day-3.3%-1.1%5.4%
90 Day-7.8%-30.4%-5.7%
1 Year11.6%8.9%-7.2%-23.1%6.5%4.1%
3 Year40.3%30.1%10.2%-13.4%28.3%19.8%
5 Year118.9%93.1%46.9%6.9%52.2%35.0%

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?

7.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LMT ($369) is trading below our estimate of fair value ($398.74)

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 poor value based on its PE Ratio (16.7x) compared to the Aerospace & Defense industry average (14.5x).

PE vs Market: LMT is poor value based on its PE Ratio (16.7x) compared to the US market (15x).


Price to Earnings Growth Ratio

PEG Ratio: LMT is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: LMT is overvalued based on its PB Ratio (30x) compared to the US Aerospace & Defense industry average (1.8x).


Next Steps

Future Growth

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

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LMT's forecast earnings growth (4.9% per year) is above the savings rate (2.2%).

Earnings vs Market: LMT's earnings (4.9% per year) are forecast to grow slower than the US market (21.5% per year).

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

Revenue vs Market: LMT's revenue (4.6% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: LMT's revenue (4.6% 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 (91%).


Next Steps

Past Performance

How has Lockheed Martin performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LMT has high quality earnings.

Growing Profit Margin: LMT's current net profit margins (10.2%) are higher than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: LMT's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: LMT's earnings growth over the past year (11.7%) is below its 5-year average (14.2% per year).

Earnings vs Industry: LMT earnings growth over the past year (11.7%) exceeded the Aerospace & Defense industry 1%.


Return on Equity

High ROE: Whilst LMT's Return on Equity (179.04%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Lockheed Martin's financial position?


Financial Position Analysis

Short Term Liabilities: LMT's short term assets ($19.2B) exceed its short term liabilities ($15.7B).

Long Term Liabilities: LMT's short term assets ($19.2B) do not cover its long term liabilities ($30.1B).


Debt to Equity History and Analysis

Debt Level: LMT's debt to equity ratio (332.2%) is considered high.

Reducing Debt: LMT's debt to equity ratio has increased from 239.6% to 332.2% over the past 5 years.

Debt Coverage: LMT's debt is well covered by operating cash flow (68.7%).

Interest Coverage: LMT's interest payments on its debt are well covered by EBIT (12.4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.60%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: LMT's dividend (2.6%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: LMT's dividend (2.6%) is low compared to the top 25% of dividend payers in the US market (4.73%).


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 (41.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Marillyn Hewson (65yo)

7.33yrs

Tenure

US$30,913,982

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 ($USD30.91M) is above average for companies of similar size in the US market ($USD11.76M).

Compensation vs Earnings: Marillyn's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Marillyn Hewson
Chairman7.33yrsUS$30.91m0.014% $14.5m
Kenneth Possenriede
Executive VP & CFO1.25yrsUS$9.26m0.00099% $1.0m
Richard Ambrose
Executive Vice President of Space7.08yrsUS$8.58m0.00012% $124.2k
Frank St. John
Executive Vice President of Rotary & Mission Systems2.33yrsUS$8.52mno data
Michele Evans
Executive Vice President of Aeronautics1.92yrsUS$7.89m0.00015% $155.2k
Rodney Makoske
Senior Vice President of Corporate Engineering5.25yrsno datano data
Brian Colan
VP, Controller & Chief Accounting Officer5.75yrsno data0.00017% $175.9k
Dana Jackson
Chief Technology Officer5.25yrsno datano data
Greg Gardner
Vice President of Investor Relations3.42yrsno datano data
Maryanne Lavan
Senior VP9.92yrsUS$6.65m0.00028% $289.7k

5.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: LMT's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marillyn Hewson
Chairman7.33yrsUS$30.91m0.014% $14.5m
Daniel Akerson
Independent Lead Director1.08yrsUS$356.89k0.0027% $2.8m
James Taiclet
Independent Director2.33yrsUS$310.00k0.00048% $496.7k
Thomas Falk
Independent Director9.92yrsUS$350.17k0.0019% $1.9m
Ilene Gordon
Independent Director3.92yrsUS$342.39k0.00027% $279.4k
David Burritt
Independent Director12.08yrsUS$310.08k0.0021% $2.2m
James Ellis
Independent Director15.5yrsUS$330.44k0.000070% $72.4k
Bruce Carlson
Independent Director4.83yrsUS$312.51kno data
Vicki Hollub
Independent Director1.83yrsUS$312.42kno data
Jeh Johnson
Independent Director2.33yrsUS$310.33kno data

4.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: LMT's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$103.481b
  • Shares outstanding: 280.44m
  • 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
LOMETLX (Eurotlx)YesCommon StockITEURMar 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 worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The Missiles and Fire Control 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 Rotary and Mission Systems 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 ship; 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 Systems segment offers satellites; space transportation systems; strategic, advanced strike, and defensive missile systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 02:34
End of Day Share Price2020/05/22 00:00
Earnings2020/03/29
Annual Earnings2019/12/31


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.