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Lockheed Martin Corp LMT

Morningstar Rating
$461.33 −2.54 (0.55%)
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Company Report

Even With Moderate Budget Growth, Lockheed Is a Well-Positioned Defense Contractor

Lockheed derived more than 70% of its $66 billion in 2022 sales servicing contracts from the U.S. Department of Defense, the largest military budget on Earth, and stands to operate the largest defense procurement program ever awarded (F-35) through the 2060s. Thus, as a bet on the defense industry, Lockheed is hard to beat. Biggest isn't always best, but Lockheed (and investors) benefit from the sheer scale of its tens of billions of dollars of contracts that provide defined decadeslong revenue and profit streams.

Price vs Fair Value

LMT is trading at a 4% discount.
Price
$463.87
Fair Value
$791.00
Uncertainty
Medium
1-Star Price
$456.70
5-Star Price
$246.40
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Lockheed Martin’s prime contractor role on the F-35, the largest weapon program in history, should deliver stable revenue for decades through procurement and maintenance.

Bears

Lockheed Martin depends on U.S. military funding for its sales, which is an inherently political and thus uncertain process.

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News

Trading Information

Previous Close Price
$463.87
Day Range
$460.41469.54
52-Week Range
$393.77495.83
Bid/Ask
$460.00 / $464.00
Market Cap
$110.95 Bil
Volume/Avg
1.8 Mil / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
16.61
Price/Sales
1.72
Dividend Yield (Trailing)
2.70%
Dividend Yield (Forward)
2.76%
Total Yield
8.17%

Company Profile

Lockheed Martin is the world's largest defense contractor and has dominated the Western market for high-end fighter aircraft since it won the F-35 Joint Strike Fighter program in 2001. Lockheed’s largest segment is aeronautics, which derives upward of two-thirds of its revenue from the F-35. Lockheed’s remaining segments are rotary and mission systems, which is mainly the Sikorsky helicopter business; missiles and fire control, which creates missiles and missile defense systems; and space systems, which produces satellites and receives equity income from the United Launch Alliance joint venture.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Large Value
Total Number of Employees
122,000

Competitors

Valuation

Metric
LMT
BA
NOC
Price/Earnings (Normalized)
16.6121.34
Price/Book Value
16.424.69
Price/Sales
1.721.321.79
Price/Cash Flow
14.3654.9917.49
Price/Earnings
LMT
BA
NOC

Financial Strength

Metric
LMT
BA
NOC
Quick Ratio
0.990.280.86
Current Ratio
1.211.141.15
Interest Coverage
9.840.185.30
Quick Ratio
LMT
BA
NOC

Profitability

Metric
LMT
BA
NOC
Return on Assets (Normalized)
12.76%−1.22%5.27%
Return on Equity (Normalized)
78.91%15.47%
Return on Invested Capital (Normalized)
30.39%0.74%9.27%
Return on Assets
LMT
BA
NOC
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Aerospace & Defense Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
GE
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EADSY
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RTX
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BA
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GD
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TDG
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NOC
Northrop Grumman CorpLdflkjrzqJnt$67.0 Bil
BAESY
BAE Systems PLC ADRGgvwfyqPxd$48.4 Bil
RYCEY
Rolls-Royce Holdings PLC ADRSbncjkyrMhrfcw$41.4 Bil

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