LMTLMT
US • —
$509.42
P/E
24.66
PEG
—
FCF Yield
—
Rev Growth YoY
+4.6% YoY
Gross Margin
9.9%
Health Score
7/10
D/E Ratio
3.23
Confidence
MEDIUM
Business Snapshot
Lockheed Martin operates in the aerospace, defense, and security industry, deriving the majority of its revenue from the U.S. government, primarily through contracts with the Department of Defense. It is a dominant player in the sector, consistently ranking among the top global defense contractors. The company holds a significant competitive advantage due to its position in highly specialized, hard-to-replicate programs and a decades-long relationship with its primary customer. The defining characteristic that sets Lockheed Martin apart is its deep regulatory and contractual moat, characterized by long-term, often sole-source, government contracts.
Financial Health
Gross margin stands at 9.9%, while the net margin is 6.4%; without prior year data, the margin trend is unclear. The balance sheet appears stretched, with a high debt-to-equity ratio of 3.23x, but this is common for capital-intensive defense primes and partially offset by a current ratio of 1.09x, indicating adequate short-term liquidity...
Risk Assessment
- VALUATION — P/E of 24.66x trades at a premium to the sector average of 22x, implying investor expectations for above-average performance.
- EARNINGS QUALITY — Earnings declined by 10.8% year-over-year, a meaningful contraction that contrasts with modest revenue growth.
- DEBT / LIQUIDITY — Debt/equity of 3.23x is extremely high, exposing the balance sheet to interest rate risk and limiting financial flexibility.
- INSIDER — Insiders have sold shares on a net basis (0 buys vs 4 sells) over the last 90 days, a cautious signal about the stock's near-term prospects from those closest to the business.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 9.9%, while the net margin is 6.4%; without prior year data, the margin trend is unclear. The balance sheet appears stretched, with a high debt-to-equity ratio of 3.23x, but this is common for capital-intensive defense primes and partially offset by a current ratio of 1.09x, indicating adequate short-term liquidity. Return on equity is exceptionally high at 74.5%, reflecting significant financial leverage and efficient profit generation on equity capital. Overall, while the company carries substantial debt, its consistent cash generation from government contracts supports its ability to service debt and maintain a strong dividend, even if free cash flow data is not available for direct confirmation.
- VALUATION — P/E of 24.66x trades at a premium to the sector average of 22x, implying investor expectations for above-average performance. - EARNINGS QUALITY — Earnings declined by 10.8% year-over-year, a meaningful contraction that contrasts with modest revenue growth. - DEBT / LIQUIDITY — Debt/equity of 3.23x is extremely high, exposing the balance sheet to interest rate risk and limiting financial flexibility. - INSIDER — Insiders have sold shares on a net basis (0 buys vs 4 sells) over the last 90 days, a cautious signal about the stock's near-term prospects from those closest to the business. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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