Lockheed Martin (LMT) AI Stock Analysis

• Market Cap: $108.37B
• Dividend Yield: 2.85%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.26
• Revenue Growth: 3.12%
• EPS Growth: -15.29%
• Country: US
• Employees: 121,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Aerospace & Defense
• EPS (TTM): 7.28
• Shares Outstanding: 234,295,960
• 10 Day Avg. Volume: 1,732,203
• 30 Day Avg. Volume: 1,550,734
• PEG Ratio: 5.09
• Price to Book (P/B): 16.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.12
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 17.52
• Enterprise Value/Ebitda: 3.33
• 1Y Price Target: $527.15
• Price Target Upside: 13.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 80 Outperform
• Price Target: $529.00 ▲(14.37%Upside)

Lockheed Martin's strong financial performance and positive earnings call are the primary drivers of its overall score. The company's robust growth, strategic focus, and solid balance sheet offset some technical weaknesses. While technical analysis shows bearish trends, the valuation remains attractive, underpinned by a reasonable P/E ratio and solid dividend yield. The absence of significant corporate events means the focus remains on the company's operational and strategic execution.

Positive Factors

Earnings

EPS of $7.28 beats expectations.

Revenue Performance

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

Negative Factors

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.

Financial 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

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 exhibits strong financial performance with consistent revenue and profit growth, a solid balance sheet with reduced debt levels, and efficient cash flow management. The company's strategic focus on cost management and capital structure optimization contributes to its robust financial health. However, a slight decline in EBITDA margin and free cash flow generation needs monitoring to maintain its strong financial standing.

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	8.45B	9.83B	8.29B	9.06B	8.65B
EBITDA	9.07B	8.82B	10.44B	8.71B	9.48B	10.12B
Net Income	5.50B	5.34B	6.92B	5.73B	6.32B	6.83B
Balance Sheet
Total Assets	56.67B	55.62B	52.46B	52.88B	50.87B	50.71B
Cash, Cash Equivalents and Short-Term Investments	1.80B	2.48B	1.44B	2.55B	3.60B	3.16B
Total Debt	20.30B	20.27B	17.46B	15.43B	11.68B	12.17B
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: Negative
• Last Price: 462.52
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 462.52 is below the 20-day moving average (MA) of 468.85, below the 50-day MA of 469.11, and below the 200-day MA of 490.09, indicating a bearish trend. The MACD of -2.34 indicates Positive momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 39.50 is Neutral, 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
LMT	80 Outperform	$108.37B	19.98	82.55%	2.85%	3.12%	-15.29%
GD	79 Outperform	$79.11B	20.46	18.23%	2.04%	14.11%	17.65%
RTX	76 Outperform	$194.72B	42.74	7.54%	1.88%	15.11%	34.14%
LHX	76 Outperform	$47.81B	30.31	8.49%	1.89%	5.39%	36.86%
NOC	74 Outperform	$72.57B	19.84	25.41%	1.85%	0.61%	77.28%
BA	59 Neutral	$162.80B	―	-162.23%	―	-9.15%	-406.76%
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%

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.