Lockheed Martin Stock Analysis, Valuation (NYSE:LMT)

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$343.22 $3.88 (1.14%) LMT stock closing price Sep 18, 2018 (Closing)

Take a look at Amigobulls Lockheed Martin stock analysis video. Our LMT analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Lockheed Martin Corporation Stock Rating 3.1/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for LMT stock analysis. We compare Lockheed Martin valuation with its sector peers to gauge relative attractiveness of LMT stock. Lockheed Martin stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy LMT stock?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 2.4.
  • The TTM operating margin was good at 13.01 for Lockheed Martin.
  • The Lockheed Martin stock currently trades at a price to earnings ratio of 20.5, compared to the sector average of 23. We rate this as a positive.
  • The LTM ROE of 398.6 for Lockheed Martin is attractive.

Should you sell LMT stock?

  • With a debt/equity ratio of 29.71, Lockheed Martin is highly leveraged in comparison to Aerospace peers.
  • The company's operations consume more cash than it generates. This is not a healthy sign.
  • The company has a negative free cash flow margin of -2.5.

Comments on this video and Lockheed Martin stock

Amigobulls Lockheed Martin stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, Lockheed Martin revenue growth and profit or net income are two main metrics which help in identifying whether LMT stock is overvalued or undervalued. Investors could make use of LMT technical analysis to check whether the fundamental story is reflected in the market sentiment.