Lockheed Martin Corp

LMT

Guided Missiles & Space Vehicles & Parts

Mkt Cap

$110.3B

PE

16.28

Debt

$20.87B

Cash

$2.79B

EV

$128.4B

FCF

$6.216B

Market Cap

$110.3B

P/E Ratio

16.28

Debt

$20.87B

Cash

$2.79B

EV

$128.4B

FCF

$6.216B

Charts data: {"Earnings":[{"time":"2014-12-30","value":3614000000},{"time":"2015-12-30","value":3605000000},{"time":"2016-12-30","value":5302000000},{"time":"2017-12-30","value":2002000000},{"time":"2018-12-30","value":5046000000},{"time":"2019-12-30","value":6230000000},{"time":"2020-12-30","value":6833000000},{"time":"2021-12-30","value":6315000000},{"time":"2022-12-30","value":5732000000},{"time":"2023-12-30","value":6920000000}],"Sales":[{"time":"2014-12-30","value":45600000000},{"time":"2015-12-30","value":46132000000},{"time":"2016-12-30","value":47290000000},{"time":"2017-12-30","value":49960000000},{"time":"2018-12-30","value":53762000000},{"time":"2019-12-30","value":59812000000},{"time":"2020-12-30","value":65398000000},{"time":"2021-12-30","value":67044000000},{"time":"2022-12-30","value":65984000000},{"time":"2023-12-30","value":67571000000}],"Net Margins":[{"time":"2014-12-30","value":0.07925438596491229},{"time":"2015-12-30","value":0.07814532211913638},{"time":"2016-12-30","value":0.11211672658067244},{"time":"2017-12-30","value":0.04007205764611689},{"time":"2018-12-30","value":0.09385811539749266},{"time":"2019-12-30","value":0.10415970039456965},{"time":"2020-12-30","value":0.10448331753264625},{"time":"2021-12-30","value":0.09419187399319849},{"time":"2022-12-30","value":0.08686954413191077},{"time":"2023-12-30","value":0.1024107975314854}],"Assets":[{"time":"2014-12-30","value":37073000000},{"time":"2015-12-30","value":49128000000},{"time":"2016-12-30","value":47806000000},{"time":"2017-12-30","value":46521000000},{"time":"2018-12-30","value":44876000000},{"time":"2019-12-30","value":47528000000},{"time":"2020-12-30","value":50710000000},{"time":"2021-12-30","value":50873000000},{"time":"2022-12-30","value":52880000000},{"time":"2023-12-30","value":52456000000}],"Stockholders Equity":[{"time":"2014-12-30","value":3400000000},{"time":"2015-12-30","value":3097000000},{"time":"2016-12-30","value":1606000000},{"time":"2017-12-30","value":-609000000},{"time":"2018-12-30","value":1449000000},{"time":"2019-12-30","value":3171000000},{"time":"2020-12-30","value":6038000000},{"time":"2021-12-30","value":10959000000},{"time":"2022-12-30","value":9266000000},{"time":"2023-12-30","value":6835000000}],"ROE":[{"time":"2014-12-30","value":1.0629411764705883},{"time":"2015-12-30","value":1.1640297061672586},{"time":"2016-12-30","value":3.3013698630136985},{"time":"2017-12-30","value":-3.2873563218390807},{"time":"2018-12-30","value":3.4824016563147},{"time":"2019-12-30","value":1.9646799116997793},{"time":"2020-12-30","value":1.131666114607486},{"time":"2021-12-30","value":0.5762387079113058},{"time":"2022-12-30","value":0.6186056550830995},{"time":"2023-12-30","value":1.0124359912216532}],"ROA":[{"time":"2014-12-30","value":0.150837536751814},{"time":"2015-12-30","value":0.11064973131411822},{"time":"2016-12-30","value":0.11607329623896583},{"time":"2017-12-30","value":0.12727585391543603},{"time":"2018-12-30","value":0.16342811302255103},{"time":"2019-12-30","value":0.1797887561016664},{"time":"2020-12-30","value":0.17045947544862947},{"time":"2021-12-30","value":0.17932891710730642},{"time":"2022-12-30","value":0.15786686838124053},{"time":"2023-12-30","value":0.16217401250571908}]}

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. 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, surface ships, sea and land-based missile defense systems, radar systems, sea and air-based mission and combat systems, command and control mission solutions, cyber solutions, and simulation and training solutions. The Space segment offers 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 serves primarily serves the U.S. government, as well as foreign military sales contracted through the U.S. government. Lockheed Martin Corporation was founded in 1912 and is headquartered in Bethesda, Maryland.

Sector

10-Q
9/24/23
10-Q
6/25/23
10-Q
3/26/23
10-K
12/31/22
10-Q
9/25/22
10-Q
6/26/22
10-Q
3/27/22
10-K
12/31/21
10-Q
9/26/21
10-Q
6/27/21
10-Q
3/28/21
10-K
12/31/20
10-Q
9/27/20
10-Q
6/28/20
10-Q
3/29/20
10-K
12/31/19
10-Q
9/29/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/24/18
10-Q
3/25/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Lockheed Martin Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$6.216B	$6.835B	$7.477B	$8.139B	$8.815B	$9.498B	$10.18B	$10.86B	$11.52B	$12.16B	$12.77B	$127.7B
DCF		$5.943B	$5.654B	$5.352B	$5.04B	$4.722B	$4.402B	$4.082B	$3.767B	$3.457B	$3.156B	$31.56B
Value	$77.14B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 8.7%

Earnings Stability 43%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	7.8%	11%	4%	9.4%	10%	10%	9.4%	8.7%	10%	9.7%
ROA	11%	12%	13%	16%	18%	17%	18%	16%	16%	15%
ROE	120%	330%	-330%	350%	200%	110%	58%	62%	100%	100%

What is the average Net Margin?

The average Net Margin over the past 5 years is +9.77%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.06%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +16.88%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.18%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +146.43%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -48.41%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	4.12	3.71	3.07	9.04	2.58	2.15	1.66	2.77	3.03	3.36
Debt Equity	5.54	9.52	-26.68	11.60	4.75	2.29	1.17	1.83	2.76	3.14
MIN
Graham Stability	-	-	48%	100%	100%	100%	100%	89%	100%	48%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.36.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.86.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.48.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	5.2%	4.7%	1.1%	2.4%	-0.2%
Net Income	3.9%	6.5%	0.42%	21%	-2%
Stockholders Equity	23%	36%	4.2%	-26%	3.7%
FCF	6.1%	27%	-0.99%	1.6%	-2.4%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.68%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.2%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +6.52%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -1.97%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +36.37%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +3.72%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +27.34%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -2.42%.