LMTCAUTIOUS

Gross Margin

11.5%

Updated 414h ago

Sector Performance

4th percentile

LMT

11.5%

Sector Median

44.7%

Sector Avg

45.2%

📊

Deep Analysis

Gross margin, the percentage of revenue left after subtracting the direct costs of producing goods, is 11.5%.

This is far below the sector median of 43.2%, placing LMT in the 4th percentile among its peers. Because historical data for year-over-year and quarter-over-quarter changes are both listed as N/A, no trend can be assessed from this metric alone. The combination of a very low gross margin relative to peers, paired with no available trend information, suggests limited pricing power or high production costs, which raises risk for investors. This metric directly supports the overall CAUTIOUS verdict, as a margin in the bottom 4% of the sector indicates below-average profitability from core operations.

Frequently Asked Questions

What does the Gross Margin tell investors about LMT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are LMT's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.