Lockheed Martin (LMT) AI Stock Analysis

• Market Cap: $112.19B
• Dividend Yield: 2.69%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.27
• Revenue Growth: 3.12%
• EPS Growth: -15.29%
• Country: US
• Employees: 121,000
• Sector: Industrials
• Sector Strength: 92
• Industry: Aerospace & Defense
• EPS (TTM): 7.28
• Shares Outstanding: 234,295,960
• 10 Day Avg. Volume: 1,095,285
• 30 Day Avg. Volume: 1,307,803
• PEG Ratio: 5.11
• Price to Book (P/B): 16.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.22
• 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: $521.07
• Price Target Upside: 8.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 77 Outperform
• Price Target: $532.00 ▲(10.79%Upside)

Lockheed Martin scores well due to robust financial performance, including consistent revenue growth and strong cash flow management. The technical analysis indicates stability with potential for upward movement, while valuation metrics show reasonable growth expectations. The earnings call affirmed strong operational performance and strategic advancements, though some risks were acknowledged. Overall, the company is well-positioned in the Aerospace & Defense industry, with a solid outlook for future growth.

Positive Factors

Backlog

LMT ended the quarter with a $173bn backlog, up 8.5% Y/Y.

Earnings

EPS of $7.28 beats expectations.

Revenue

Revenue of $18.0bn was up 4% Y/Y and beat expectations.

Negative Factors

Analyst Downgrade

Analysts downgraded Lockheed Martin to a Neutral rating due to the loss of all 6th generation manned tactical aircraft programs and the lack of company-specific catalysts in the near term.

Contract Loss

Lockheed Martin was not selected as the winner of the USAF’s Next Generation Air Dominance program, which significantly affected the company's stock performance.

Profitability

Topline growth expectations for Lockheed Martin have been lowered, along with a delay in profitability ramp-up at Aeronautics, leading to reduced adjusted EPS expectations in the upcoming years.

Lockheed Martin Business Overview & Revenue Model

Company Description

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 missile 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-based 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.

How the Company Makes Money

Lockheed Martin makes money primarily through contracts with the U.S. government and foreign governments for defense and aerospace products and services. The company's revenue model is heavily reliant on its Aeronautics segment, which includes the design and production of military aircraft like the F-35 Lightning II and C-130 Hercules. The Missiles and Fire Control segment generates revenue from missile defense systems and precision weapons. The Rotary and Mission Systems segment provides maritime systems, radar technologies, and cyber security solutions. Finally, the Space segment focuses on satellite systems, space exploration, and strategic missile programs. Significant partnerships with government agencies, long-term contracts, and a diverse portfolio of advanced technology products contribute to Lockheed Martin's earnings.

Lockheed Martin Financial Statement Overview

Summary

Lockheed Martin demonstrates strong financial performance with consistent revenue growth, solid profit margins, and efficient cash flow management. The balance sheet shows reduced debt levels, enhancing its financial stability. Despite slight decreases in operating margins and free cash flow, the company's financial health remains robust, supported by strategic cost management and capital structure optimization.

Income Statement

Lockheed Martin's income statement reflects a strong financial performance, highlighted by consistent revenue growth and healthy profit margins. The TTM (Trailing-Twelve-Months) revenue shows a growth of 1.08% over the previous year, indicating stable expansion. The gross profit margin for the TTM is approximately 10.23%, and the net profit margin is around 7.66%, demonstrating efficient cost management and profitability. However, there is a slight decrease in EBITDA margin from 12.41% in 2023 to 12.18% in TTM, suggesting a need to monitor operating costs closely.

Balance Sheet

The balance sheet of Lockheed Martin shows a robust equity position with a debt-to-equity ratio of 0.25 in TTM, significantly lower than the previous year's 3.20, indicating improved financial leverage and reduced risk. The equity ratio stands at 11.79%, reflecting a solid capital structure, although it is relatively low compared to industry standards. Return on Equity (ROE) for TTM is at 82.36%, suggesting strong utilization of equity to generate profits. Overall, the balance sheet indicates a stable financial position with reduced debt burden.

Cash Flow

Cash flow analysis reveals a stable cash generation capability, with a Free Cash Flow of $4.985 billion in TTM. The Free Cash Flow to Net Income ratio is approximately 0.91, indicating strong cash conversion efficiency. The Operating Cash Flow to Net Income ratio is 1.23, reflecting efficient operational cash management. Although there is a slight decline in free cash flow from the previous year, the company maintains strong cash flow metrics, supporting its operational and investment activities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
71.81B	71.04B	67.57B	65.98B	67.04B	65.40B
	Gross Profit
7.35B	6.93B	8.48B	8.29B	9.06B	8.65B
	EBIT
7.42B	7.01B	8.51B	8.35B	9.12B	8.64B
	EBITDA
9.07B	8.82B	10.44B	8.71B	9.48B	10.12B
	Net Income Common Stockholders
5.50B	5.34B	6.92B	5.73B	6.32B	6.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80B	2.48B	1.44B	2.55B	3.60B	3.16B
	Total Assets
56.67B	55.62B	52.46B	52.88B	50.87B	50.71B
	Total Debt
20.30B	20.27B	17.46B	15.43B	11.68B	12.17B
	Net Debt
18.50B	17.79B	16.02B	12.88B	8.07B	9.01B
	Total Liabilities
49.99B	49.28B	45.62B	43.61B	39.91B	44.67B
	Stockholders Equity
6.68B	6.33B	6.83B	9.27B	10.96B	6.01B
Cash Flow		Free Cash Flow
4.99B	5.29B	6.23B	6.13B	7.70B	6.42B
	Operating Cash Flow
6.75B	6.97B	7.92B	7.80B	9.22B	8.18B
	Investing Cash Flow
-1.85B	-1.79B	-1.69B	-1.79B	-1.16B	-2.01B
	Financing Cash Flow
-5.88B	-4.14B	-7.33B	-7.07B	-7.62B	-4.53B

Lockheed Martin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 480.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMT, the sentiment is Positive. The current price of 480.17 is above the 20-day moving average (MA) of 468.28, above the 50-day MA of 461.08, and below the 200-day MA of 498.66, indicating a neutral trend. The MACD of 3.73 indicates Negative momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 82.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LMT.

Lockheed Martin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	78 Outperform	$74.00B	19.13	18.23%	2.09%	14.11%	17.65%
LMT	77 Outperform	$112.19B	20.68	82.55%	2.69%	3.12%	-15.29%
LHX	76 Outperform	$45.46B	28.82	8.49%	1.92%	5.39%	36.86%
NOC	74 Outperform	$69.57B	19.03	25.41%	1.70%	0.61%	77.28%
RTX	73 Outperform	$183.64B	40.31	7.54%	1.87%	15.11%	34.14%
Sector *	65 Neutral	$4.44B	12.22	5.28%	248.14%	4.08%	-12.12%
BA	52 Neutral	$159.45B	―	-162.23%	―	-9.15%	-406.76%

Lockheed Martin Corporate Events

Lockheed Martin Holds Annual Stockholders Meeting

On May 9, 2025, Lockheed Martin held its Annual Meeting of Stockholders, where a significant 86.47% quorum was achieved. Key outcomes included the election of 10 directors to the board, approval of executive compensation, and ratification of Ernst & Young LLP as independent auditors. However, stockholder proposals regarding excessive golden parachutes and political activities alignment with human rights policy were not approved.

Lockheed Martin Appoints New Chief Financial Officer

On April 17, 2025, Lockheed Martin announced the appointment of Evan T. Scott as the new Chief Financial Officer, replacing Jay Malave who is pursuing other opportunities. Scott, a 26-year veteran of the company, has held various financial leadership roles and is expected to drive continued growth and excellence in the finance organization.