Lockheed Martin Corp (LMT, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial position. With its shares priced at $521.82, despite a slight daily loss of 0.57%, Lockheed Martin Corp has shown a promising three-month growth of 12.52%. A detailed analysis, supported by the GF Score, positions Lockheed Martin Corp for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system from GuruFocus, which evaluates stocks based on five key aspects of valuation. 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 boasts a GF Score of 93, signaling strong future performance potential.
- 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 $124.38 billion and annual sales of $71.07 billion, is the world's largest defense contractor. Dominating the Western market for high-end fighter aircraft since winning the F-35 Joint Strike Fighter program in 2001, Lockheed Martin's largest segment, aeronautics, generates over two-thirds of its revenue from the F-35. Other segments include rotary and mission systems (mainly the Sikorsky helicopter business), missiles and fire control (missiles and missile defense systems), and space systems (satellites and equity income from the United Launch Alliance joint venture).
Financial Strength Breakdown
Lockheed Martin Corp's Financial Strength is evident in its robust balance sheet and prudent capital management. The company's Interest Coverage ratio stands at an impressive 8.48, highlighting its ability to comfortably cover interest obligations. Additionally, its strategic Debt-to-Revenue ratio of 0.27 further solidifies its financial health.
Profitability and Growth Metrics
Lockheed Martin Corp's Profitability Rank is high, reflecting its superior ability to generate profits compared to its peers. The company's consistent operational performance is further underscored by a Predictability Rank of 5.0 stars. In terms of growth, Lockheed Martin has demonstrated a commitment to expansion, with a 3-Year Revenue Growth Rate of 5%, and notable increases in EBITDA over recent years.
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.
