Lockheed Martin Corp (LMT, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $524.51, Lockheed Martin Corp has experienced a daily gain of 0.6% and a significant three-month increase of 14.7%. A detailed analysis, supported by the GF Score, indicates that Lockheed Martin Corp is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Lockheed Martin Corp has been awarded a GF Score of 93, reflecting its high potential for market outperformance.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Understanding Lockheed Martin Corp's Business
Lockheed Martin Corp, with a market cap of $125.02 billion and annual sales of $71.07 billion, is the world's largest defense contractor. The company has been a dominant player in the Western market for high-end fighter aircraft since winning the F-35 Joint Strike Fighter program in 2001. Its largest segment, aeronautics, generates over two-thirds of its revenue from the F-35 program. Other segments include rotary and mission systems, missiles and fire control, and space systems, which produce satellites and receive equity income from the United Launch Alliance joint venture.
Financial Strength Breakdown
Lockheed Martin Corp's Financial Strength rating reflects a robust balance sheet and prudent capital management. The company's Interest Coverage ratio stands at 8.48, indicating a strong ability to meet its interest obligations. Additionally, its Debt-to-Revenue ratio of 0.27 showcases effective debt management, further solidifying its financial health.
Profitability and Growth Metrics
Lockheed Martin Corp's Profitability Rank is impressive, and its Predictability Rank of 5.0 stars highlights consistent operational performance. The company's commitment to growth is evident in its Growth Rank and a 3-Year Revenue Growth Rate of 5%. The three-year EBITDA growth rate of 4.9 and a five-year rate of 6.6 further underscore its growth capabilities.
Conclusion
Considering Lockheed Martin Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
