About LOCKHEED MARTIN CORP
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.
LMT operates in the Manufacturing | Defense | headquartered in Bethesda, Maryland | approximately 116,000 employees | led by CEO James D. Taiclet.
$113.8 billion 17.6x P/E 18.4x P/B 10.3x EV/EBITDA 108.0% ROE 9.0% rev. growth 3.0% yield
LOCKHEED MARTIN CORP earns a Buy rating from our quantitative model with a composite score of 73/100, ranking #47 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is stability at 94/100, which places LMT in the top 6 percent of all stocks on this measure. value at 91/100 provides secondary support. Investors should note that investment efficiency scores a below-average 37/100, which tempers the overall profile.
Within the Manufacturing sector, LMT ranks 26th out of 50 peers, placing it in the 48th percentile. At $113.8 billion, the company is a well-established large cap.
Quality Analysis
LOCKHEED MARTIN CORP's quality score of 80/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 108.0% exceeds the sector median of -2.0%. Gross margins of 12.0% suggest a commodity-like business with thin pricing power. Operating margins of 12.0% sit above the 3.0% sector average.
Net margins of 9.0% show the company is profitable, though not with exceptional efficiency.
Valuation Assessment
A value score of 91/100 puts LMT in the top 9 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 17.6x, an EV/EBITDA of 10.3x, a price-to-book of 18.4x, a price-to-sales of 1.5x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 73/100 shows LMT is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of 9.0% provides a moderate fundamental underpinning. A beta of 0.15 means LOCKHEED MARTIN CORP moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Leverage risk. A debt-to-equity ratio of 359.00 indicates significant leverage. In a rising rate environment or economic downturn, high debt loads can amplify losses and strain cash flow. Investors should monitor the company's ability to service its obligations.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support LOCKHEED MARTIN CORP's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
LOCKHEED MARTIN CORP earns a Buy rating with a composite score of 73/100 and 4 out of 5 stars, ranking #47 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position LMT above the majority of the market.
Explore the full LMT analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
