LMT Lockheed Martin Corporation - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
LMT trades at a valuation premium to most peers despite moderate growth, with only BA trading at a higher implied multiple, though BA has much stronger revenue momentum (30.4% vs. 8.8%).
- Forward P/E of 16.57 is below current P/E of 25.98, suggesting valuation normalization ahead
- P/S of 1.47 is in line with sector average and below some high-growth peers
- Current P/E of 25.98 exceeds sector average of 26.79 and peer HON (21.02), despite lower growth
- Price/Book of 17.33 is extremely high, indicating overvaluation relative to book equity
While revenue momentum remains positive, price performance has weakened (1M: -6.7%, 1Y: -11.2%), lagging behind BA and DE, suggesting market skepticism about future earnings delivery despite stable defense contracts.
- Revenue growth of 8.80% YoY indicates continued defense spending tailwinds
- Forward P/E of 16.57 suggests earnings recovery is expected in 2025-2026
- Q/Q earnings growth of -0.20% signals near-term stagnation
- No quarterly earnings beats in last 4 quarters, indicating consistent but unspectacular execution
Historically strong profitability and long-term returns are offset by recent underperformance and lack of earnings surprise momentum, with consistent but uninspiring quarterly results over the past 25 quarters.
- ROE of 62.78% reflects exceptional capital efficiency over time
- 5Y return of +41.6% demonstrates long-term shareholder value creation
- No earnings beat in last 4 quarters, indicating lack of upside execution
- 1Y return of -11.2% underperforms both sector and key peers like BA and DE
LMT’s financial leverage is the highest among peers—exceeding HON (2.15), DE (2.67), and far above PCAR (0.82)—raising refinancing and interest rate risks in a high-rate environment.
- Current ratio of 1.13 indicates basic short-term liquidity coverage
- Operating in a government-contracted business provides revenue visibility and cash flow stability
- Debt/Equity of 3.59 is dangerously high, more than double the sector average of 1.76
- Quick ratio of 0.93 indicates limited buffer to meet short-term obligations without asset sales
The dividend remains a key shareholder return mechanism, with a yield above HON (2.1%) and DE (1.9%), supported by long-term government contracts, though growth may be constrained by high leverage and capex needs.
- Dividend yield of 2.96% is attractive in the current rate environment and above peer average
- Payout ratio of 73.54% is sustainable given stable defense contracts and predictable cash flows
- No data on 5-year average yield or dividend growth history limits visibility into policy consistency
- High payout ratio leaves little room for dividend growth without earnings expansion
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for LMT and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
LMT
Lockheed Martin Corporation
Primary
|
+41.6% | +8.0% | -11.2% | +0.9% | -6.7% | +1.6% |
|
TT
Trane Technologies plc
Peer
|
+193.4% | +145.3% | +2.9% | -2.1% | -1.0% | -3.8% |
|
MMM
3M Company
Peer
|
+39.8% | +72.8% | +29.7% | +11.0% | +9.7% | +2.1% |
|
HON
Honeywell International Inc.
Peer
|
+12.1% | +4.6% | -6.0% | -4.2% | +4.9% | +3.2% |
|
DE
Deere & Company
Peer
|
+96.1% | +21.9% | +22.4% | -9.8% | +6.2% | +1.8% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Industrials Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
LMT
Lockheed Martin Corporation
|
NEUTRAL | $107.78B | 25.98 | 62.8% | 5.7% | $465.77 | |
|
TT
Trane Technologies plc
|
BULLISH | $92.72B | 31.95 | 37.2% | 13.9% | $418.16 | |
|
MMM
3M Company
|
NEUTRAL | $90.64B | 26.73 | 72.9% | 13.7% | $167.58 | |
|
HON
Honeywell International Inc.
|
BULLISH | $126.89B | 21.02 | 34.6% | 15.1% | $199.04 | |
|
DE
Deere & Company
|
NEUTRAL | $128.74B | 24.88 | 21.4% | 11.8% | $476.23 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-10-24 | RICCIARDONE MARIA A. | Officer and Treasurer | Stock Award | 446 | - |
| 2025-10-23 | ST JOHN FRANK A | Chief Operating Officer | Sale | 7,792 | $3,826,166 |
Wall Street Analysts
Professional analyst ratings and price targets