Lockheed Martin LMT
Lockheed Martin is an aerospace and defense company that designs, manufactures, and maintains fighter jets, missile systems, security technologies, and mission services for government and military clients. Lockheed Martin shows solid financial health (ND/EBITDA 1.73x) and exceptional profitability (ROE 89.17%), with earnings growth of 443.8% that is not sustainable, but long-term defense demand supports the business.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Lockheed Martin is an aerospace and defense company that designs, manufactures, and maintains fighter jets, missile systems, security technologies, and mission services for government and military clients. Lockheed Martin shows solid financial health (ND/EBITDA 1.73x) and exceptional profitability (ROE 89.17%), with earnings growth of 443.8% that is not sustainable, but long-term defense demand supports the business.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.3 |
| Quality / Moat | 7.0 |
| Valuation | 6.1 |
| Growth | 8.3 |
| Dividend | 7.3 |
| Momentum | 7.1 |
| Risk & Context | 8.8 |
OVERALL SCORE: 6.9/10
Context and risks
The rise in crude oil and 10-year yields does not directly affect LMT's defense business. However, increased geopolitical tension (North Korea, Taiwan) is a positive demand factor, though already largely priced into defense stocks.
News considered in the analysis
- Defense Firms Are Rushing to Boost Missile Output. It’s Coming Too Late. — La alta demanda de misiles es un viento de cola directo para la división de misiles y control de fuego de LMT, pero el titular sugiere que la capacidad de producción no llega a tiempo, limitando el beneficio a corto plazo.
- Lockheed Martin (LMT) Gets Another Boost from the Long-Range Missile Push — Refuerza el viento de cola de la demanda de misiles de largo alcance, un segmento clave para LMT, aunque el mercado ya lo descuenta en parte.
- North Korea tests swarm attacks combining drones and missiles - WSJ — Las tensiones geopolíticas aumentan la demanda de defensa, beneficiando a LMT, aunque es un factor ya conocido y descontado en el precio.
- U.S. understands Taiwan’s defence needs amid China threat, official says — El compromiso de EE. UU. con Taiwán impulsa la demanda de defensa a largo plazo, un factor positivo para LMT.
- GD vs. LMT: Which Defense Dividend Stock Will Crush Retirement Income Goals? — Listículo sin información nueva sobre LMT.
Verdict: Hold; valuation is reasonable and the business is well-positioned, but current earnings growth is not extrapolable.
Main risk: The main risk is dependence on US and allied defense budgets, which could be cut in a fiscal consolidation environment.
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