LMT Lockheed Martin

Lockheed Martin is the world's largest defense contractor, producing the F-35 fighter jet, missile defense systems, and space launch vehicles. Sector: Industrials.

Lockheed Martin (LMT) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a returns-on-capital standpoint, ROIC is 18.30%, WACC is 5.78%, and the economic spread is 12.53%. On balance, the company is generating returns that comfortably clear their cost of capital, a reliable indicator of competitive durability. Supporting metrics show ROE at 78.57% and ROA at 8.09%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

The current pricing of the company reads trailing P/E of 28.98, forward P/E of 20.82, PEG of 8.19. The trailing-to-forward compression is moderate — supportive of valuation, but not a dramatic signal of earnings acceleration. The PEG reading here is above the range most value-oriented investors would find comfortable — the valuation requires a high degree of confidence in forward earnings delivery. The aggregate current ratio of 1.09 points to tighter short-term liquidity across the company. In aggregate, the valuation reads as fair to moderately stretched — leaving the investment case dependent on earnings execution rather than multiple expansion.

On profitability at each income statement layer, gross margin sits at 10.20%, operating margin at 9.81%, and free cash flow margin at 9.20%. Gross margins are compressed, which typically limits how much of any revenue growth can drop to the operating line. The operating margin reading is modest, consistent with businesses still working to scale their cost structures efficiently. Free cash flow margins are moderate, with a meaningful but not exceptional share of revenue converting to cash after capex. Taken together, margins are adequate but uneven, suggesting earnings quality is not uniformly strong across all levels.

Looking at what the company are actually delivering versus what analysts are pricing in, TTM revenue growth of 9.12% indicating top-line growth that is constructive without being speculative. At the same time, the estimated 12-month price change of 1.98%, where consensus pricing points to a narrow upside range. Revenue growth captures operating momentum, while price targets reflect external expectations that can move with rates, risk appetite, and sector sentiment. Whether current momentum translates into delivered returns will depend on the durability of both top-line trends and the assumptions embedded in analyst targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Putting the pieces together, this is a profile with genuine merit: the numbers support confidence in the forward case without requiring heroic assumptions.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.