LMT Analysis — TradeApes

LOCKHEED MARTIN CORP (LMT)

Consumer Cyclical

$632.90 close · Apr 09, 2026

↑ Mild Premium (38/100)

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 60

Operating Trend 60

Valuation 45

Capital Allocation 55

Risk 70

Positives

↑ Free cash flow positive — business generates real spendable cash +2.5

↑ High ROIC — above 20%, excellent return on invested capital +2.5

↑ Decent FCF yield — 4–7%, reasonable cash return on price paid +1.3

Concerns

↓ High P/E — 25–45×, growth premium already priced in -2.5

↓ Altman Z-Score in grey zone — uncertain financial stability -1.0

Signal contribution: +7.1 from strengths -3.5 from concerns

Health Score Trend 8 snapshots

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	75.05B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	7.62B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	7.73B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	5.02B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	8.56B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	9.42B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	21.70B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	4.12B

Valuation

Market Cap	147.78B
Enterprise Value	165.36B
EV / Revenue	2.2x
EV / EBITDA	17.6x
P/E (TTM)	29.5x
Forward P/E (extrapolated)	19.4x
PEG	—
P/FCF	17.3x
FCF Yield	5.8%

DCF Fair Value Range (base CAGR: 5.4%)

Bear

$602.55

Base

$714.84

Bull

$848.00

Bear $603 Current $632.90 (in range) Bull $848

Market is pricing in 3.5% FCF growth annually — base model assumes 5.4%

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	10.2%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	12.5%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	6.7%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	11.4%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	5.6%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	-6.0%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	5 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	1.95

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Quarterly Financials

Metric	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '24	Q4 '23	Q3 '23	Q2 '23	Q1 '24
Revenue ?Total quarterly sales from primary business operations.	20.32B	18.61B	18.16B	17.96B	18.62B	17.10B	18.12B	17.20B	34.00B	16.88B	16.69B	—
Gross Profit ?Quarterly revenue minus cost of goods sold.	2.32B	2.24B	734.0M	2.32B	690.0M	2.12B	2.13B	1.99B	4.34B	2.05B	2.09B	—
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	2.33B	2.28B	748.0M	2.37B	696.0M	2.14B	2.15B	2.03B	4.33B	2.04B	2.14B	—
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	1.34B	1.62B	342.0M	1.71B	527.0M	1.62B	1.64B	1.55B	3.56B	1.68B	1.68B	—
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	7.15B	—	—	1.41B	5.34B	—	—	1.64B	7.92B	—	—	—

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.