About Lockheed Martin Corporation
Lockheed Martin Corporation, an aerospace and defense company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services in the United States, Europe, Asia, the Middle East, and internationally. The company 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 precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; and ground vehicles. The RMS segment offers military and commercial helicopters, surface ships, sea- and land-based missile defense systems, radar and laser systems, sea- and air-based mission and combat systems, command and control mission solutions, cyber solutions, simulation and training solutions, and services and support for surface ships. The Space segment provides satellites; space transportation systems; strategic, advanced strike, and defensive 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 global systems to help its customers gather, analyze, and securely distribute critical intelligence data. It primarily serves the U.S. government and international customers, as well as foreign military sales contracted through the U.S. government. The company was formerly known as The Lockheed Corporation and changed its name to Lockheed Martin Corporation in March 1995. Lockheed Martin Corporation was founded in 1912 and is based in Bethesda, Maryland.
Lockheed Martin Corporation (LMT) is a Industrials company in the Aerospace & Defense industry with a market capitalisation of $123.3B. The stock trades at 19.66x trailing earnings and yields 2.59%.
- Sector
- Industrials
- Industry
- Aerospace & Defense
- Market cap
- $123.3B
- P/E ratio
- 19.66
- EPS (TTM)
- $21.49
- Revenue (TTM)
- $75B
- Free cash flow
- $6.9B
- Profit margin
- 6.7%
- Dividend yield
- 2.59%
- Shares outstanding
- 230.8M
Financial health: Fair5/10
3 strengths, 3 concerns. Weakest points: debt to equity, gross margin, earnings growth.
- Debt to equity: 3.23 (Concern, benchmark < 0.5) — Debt of 3.23x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 2.5y (Strong, benchmark < 4 years) — Net debt of $17.6B is 2.5x annual free cash flow — about 3 years of cash flow to repay.
- Current ratio: 1.09 (Watch, benchmark > 1.5) — Short-term assets cover 1.09x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
- Return on equity: 74.7% (Strong, benchmark > 15%) — Earns 74.7% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 10.2% (Concern, benchmark > 40%) — Keeps 10.2% of revenue after the direct cost of sales, well short of the > 40% mark.
- Net margin: 6.7% (Watch, benchmark > 10%) — Turns 6.7% of revenue into profit, short of the > 10% mark.
- Free cash flow: $6.9B (Strong, benchmark positive) — Generated $6.9B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 5.6% (Watch, benchmark > 10%) — Revenue changed 5.6% year on year, short of the > 10% mark.
- Earnings growth: -6.0% (Concern, benchmark > 10%) — Earnings changed -6.0% year on year, well short of the > 10% mark.
- Payout ratio: 62.4% (Watch, benchmark < 60%) — Pays out 62.4% of earnings as dividends — above the level usually considered sustainable.