Lockheed Martin (LMT) AI Stock Analysis

• Market Cap: $98.18B
• Dividend Yield: 3.1%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.25
• Revenue Growth: 1.09%
• EPS Growth: -35.50%
• Country: US
• Employees: 121,000
• Sector: Industrials
• Sector Strength: 94
• Industry: Aerospace & Defense
• EPS (TTM): 1.46
• Shares Outstanding: 233,465,060
• 10 Day Avg. Volume: 2,557,015
• 30 Day Avg. Volume: 1,920,107
• PEG Ratio: -1.01
• Price to Book (P/B): 18.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.80
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 18.85
• Enterprise Value/Ebitda: 3.97
• 1Y Price Target: $476.88
• Price Target Upside: 13.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 64 Neutral
• Price Target: $448.00 ▲(6.37%Upside)

Lockheed Martin's overall stock score reflects stable financial performance and strong dividend yield, offset by bearish technical indicators and valuation concerns. Mixed earnings call sentiment suggests potential future growth, but current financial challenges require careful consideration.

Positive Factors

Cash Flow

The Lot 18/19 F-35 contract is expected to be finalized soon, which should improve cash flow.

Foreign Demand

Foreign demand for the F-35 may help compensate for any potential decline in U.S. Department of Defense orders.

Valuation

The valuation for Lockheed Martin, the largest US Defense pureplay, has become too cheap to ignore at a time when global budgets are accelerating.

Negative Factors

Financial Performance

Heavy charges across many programs have negatively impacted the company's financial performance.

Operational Concerns

The magnitude of charges related to the classified aero program was much larger than expected, raising concerns about its operational success.

Tax Uncertainty

The IRS believes Lockheed Martin owes a significant amount in taxes, which creates uncertainty.

Lockheed Martin Business Overview & Revenue Model

Company Description

Lockheed Martin Corporation (LMT) is a global aerospace, defense, security, and advanced technologies company headquartered in Bethesda, Maryland. The company operates through four main business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Lockheed Martin's core products and services include military and civilian aircraft, missile defense systems, cyber security solutions, and space exploration technologies.

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 has shown stable financial health with consistent revenue growth and strong operational efficiency. However, challenges in profitability margins and a decline in free cash flow generation highlight areas needing improvement. The company has successfully reduced leverage and improved its balance sheet strength.

Income Statement

Lockheed Martin's income statement shows a stable revenue growth trajectory with a TTM (Trailing-Twelve-Months) revenue of $71.8 billion, up from $71.0 billion in 2024. The gross profit margin has slightly decreased to 8.16% from 9.75% in 2024, indicating potential cost challenges. The net profit margin also declined to 5.85% from 7.51%, reflecting reduced profitability. However, EBITDA margin remains strong at 11.21%, showcasing operational efficiency.

Balance Sheet

The balance sheet indicates a robust equity position with a debt-to-equity ratio improvement to 0.58 from 3.20 in 2024, highlighting reduced leverage. The equity ratio stands at 9.06%, reflecting a manageable level of equity in total assets. However, the ROE has decreased to 78.81% from 84.26%, indicating a slight dip in shareholder returns. Overall, the company maintains a stable financial position with adequate equity and reduced debt levels.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow to $3.33 billion from $5.29 billion in 2024, indicating a reduction in liquidity generation. The operating cash flow to net income ratio is healthy at 1.21, suggesting efficient cash generation from operations. The free cash flow to net income ratio has decreased to 0.79, reflecting reduced cash retention. Overall, the cash flow statement shows stable operational cash flows but highlights a decline in free cash flow generation.

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
EBITDA	8.82B	10.44B	8.71B	9.48B	10.12B
Net Income	5.34B	6.92B	5.73B	6.32B	6.83B
Balance Sheet
Total Assets	55.62B	52.46B	52.88B	50.87B	50.71B
Cash, Cash Equivalents and Short-Term Investments	2.48B	1.44B	2.55B	3.60B	3.16B
Total Debt	20.27B	17.46B	15.55B	11.68B	12.17B
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: Negative
• Last Price: 421.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMT, the sentiment is Negative. The current price of 421.17 is below the 20-day moving average (MA) of 456.02, below the 50-day MA of 464.63, and below the 200-day MA of 481.30, indicating a bearish trend. The MACD of -11.00 indicates Positive momentum. The RSI at 30.86 is Neutral, neither overbought nor oversold. The STOCH value of 15.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LMT.

Lockheed Martin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LHX	77 Outperform	$51.08B	30.10	8.90%	1.73%	2.93%	43.29%
GD	76 Outperform	$84.53B	21.28	17.91%	1.86%	11.85%	16.12%
RTX	76 Outperform	$207.77B	34.38	10.13%	1.64%	15.44%	164.00%
NOC	71 Outperform	$81.40B	20.90	26.50%	1.49%	-0.65%	77.20%
Sector *	67 Neutral	£2.85B	10.42	4.69%	215.06%	2.73%	-20.56%
LMT	64 Neutral	$98.18B	23.61	73.06%	3.10%	1.09%	-35.50%
BA	59 Neutral	$174.38B	―	-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.