Lockheed Martin (LMT) AI Stock Analysis

• Market Cap: $105.65B
• Dividend Yield: 2.82%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.19
• Revenue Growth: 5.14%
• EPS Growth: -19.14%
• Country: US
• Employees: 121,000
• Sector: Industrials
• Sector Strength: 66
• Industry: Aerospace & Defense
• EPS (TTM): 22.27
• Shares Outstanding: 235,385,900
• 10 Day Avg. Volume: 1,767,694
• 30 Day Avg. Volume: 1,753,972
• PEG Ratio: 19.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.50
• Price to Cash Flow (P/CF): 26.00
• P/FCF Ratio: 26.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $531.75
• Price Target Upside: 18.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

Lockheed Martin's overall score reflects strong financial health and positive earnings call insights, highlighting robust sales growth and strategic investments. The technical analysis suggests caution due to weak momentum and the stock trading below key averages. Valuation is reasonable but not a standout factor. The significant strengths in financial performance and positive earnings outlook are tempered by technical challenges, resulting in a balanced score.

Positive Factors

Customer Demand

Customer demand for the classified MFC product is high, and scaling its production will not scale losses for LMT.

Defense Spending

U.S. Defense and NATO defense spending are expected to rise, benefiting Lockheed Martin.

Negative Factors

Program Charges

Lockheed Martin took $1.7bn in pre-tax charges in the quarter related to cost overruns in Aeronautics and MFC.

Lockheed Martin Business Overview & Revenue Model

Company Description

Headquartered in Bethesda, Maryland, Lockheed Martin Corp. is a global security and aerospace company and is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The majority of Lockheed Martin's business is with the U.S. Department of Defense and U.S. federal government agencies. Lockheed Martin's business is also comprised of international government and commercial sales of products, services and platforms. The company's operating units are divided into four categories including, Aeronautics, Missiles and Fire Control, Rotary and Mission Systems and Space Systems.

How the Company Makes Money

Lockheed Martin generates revenue through its diverse portfolio of products and services across its four business segments. The Aeronautics segment, which includes advanced military aircraft such as the F-35 Lightning II, contributes significantly to the company's revenue. The Missiles and Fire Control segment provides air and missile defense systems, tactical missiles, and fire control systems, serving both domestic and international markets. The Rotary and Mission Systems segment offers a wide range of products including helicopters, naval systems, and integrated warfare systems. The Space segment focuses on space exploration, satellite systems, and strategic and defensive missile systems. A substantial portion of Lockheed Martin's revenue comes from contracts with the U.S. government, especially the Department of Defense, as well as international military sales and commercial contracts. The company's earnings are also supported by significant long-term partnerships and collaborations with government agencies and other defense contractors.

Lockheed Martin Financial Statement Overview

Summary

Lockheed Martin demonstrates strong financial health with stable revenue growth and efficient cash flow management. While the income statement shows solid profitability, the balance sheet highlights areas for improvement in equity management and leverage. The company's ability to generate cash supports its strategic initiatives and financial commitments, suggesting a positive outlook for future performance.

Income Statement

Lockheed Martin shows strong revenue growth with a positive trajectory from $65.98 billion in 2020 to $71.04 billion in 2024. Net income is resilient, maintaining solid profit margins, although gross profit margin has seen some decline. The company's EBIT and EBITDA margins are robust, reflecting operational efficiency. The consistency in profitability marks a stable financial standing despite pressure on gross margins.

Balance Sheet

The balance sheet indicates an improvement in leverage, with a decreasing debt-to-equity ratio from 2023. However, the equity ratio remains relatively low, suggesting potential financial risks. Return on equity is strong, highlighting effective shareholder capital utilization. The company maintains a healthy asset base, although equity fluctuations suggest some financial volatility.

Cash Flow

Cash flow remains robust with consistent operating cash flows and positive free cash flow generation. The free cash flow growth rate is stable, supporting dividends and debt servicing. Operating cash flow to net income ratio indicates efficient cash conversion, reinforcing the business's overall cash health. However, capital expenditure trends need monitoring to sustain long-term growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
71.04B	67.57B	65.98B	67.04B	65.40B
	Gross Profit
6.93B	8.48B	8.29B	9.06B	8.65B
	EBIT
7.01B	8.51B	8.35B	9.12B	8.64B
	EBITDA
8.81B	10.44B	8.71B	9.48B	10.12B
	Net Income Common Stockholders
5.34B	6.92B	5.73B	6.32B	6.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.48B	1.44B	2.55B	3.60B	3.16B
	Total Assets
55.62B	52.46B	52.88B	50.87B	50.71B
	Total Debt
643.00M	17.46B	15.43B	11.68B	12.17B
	Net Debt
-1.84B	16.02B	12.88B	8.07B	9.01B
	Total Liabilities
49.28B	45.62B	43.61B	39.91B	44.67B
	Stockholders Equity
6.33B	6.83B	9.27B	10.96B	6.01B
Cash Flow		Free Cash Flow
5.29B	6.23B	6.13B	7.70B	6.42B
	Operating Cash Flow
6.97B	7.92B	7.80B	9.22B	8.18B
	Investing Cash Flow
-1.79B	-1.69B	-1.79B	-1.16B	-2.01B
	Financing Cash Flow
-4.14B	-7.33B	-7.07B	-7.62B	-4.53B

Lockheed Martin Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 448.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMT, the sentiment is Neutral. The current price of 448.82 is above the 20-day moving average (MA) of 440.10, below the 50-day MA of 462.48, and below the 200-day MA of 505.70, indicating a neutral trend. The MACD of -5.34 indicates Negative momentum. The RSI at 49.53 is Neutral, neither overbought nor oversold. The STOCH value of 77.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LMT.

Lockheed Martin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOC	79 Outperform	$67.14B	16.37	27.30%	1.70%	4.44%	110.33%
RTX	77 Outperform	$171.44B	36.22	7.94%	1.88%	17.15%	58.66%
GD	75 Outperform	$68.68B	18.64	17.14%	2.23%	12.88%	13.78%
LMT	74 Outperform	$105.65B	20.12	84.26%	2.82%	5.14%	-19.14%
LHX	71 Outperform	$38.81B	26.17	7.70%	2.23%	9.82%	22.33%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%
BA	50 Neutral	$130.99B	―	-162.23%	―	-14.49%	-399.90%

Lockheed Martin Corporate Events

Lockheed Martin Appoints Admiral Aquilino to Board

Lockheed Martin has appointed Admiral John C. Aquilino, a retired U.S. Navy admiral and former commander of the U.S. Indo-Pacific Command, to its Board of Directors. Admiral Aquilino’s extensive military experience and leadership are expected to provide valuable insights and enhance board oversight as the company advances its 21st Century Security® strategy.