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  • Lockheed Martin (NYSE:LMT) - Dividend Idea Of The Week With 4.95% Yield 0 comments
    Oct 16, 2012 2:54 AM | about stocks: LMT

    Our weekly Dividend Idea is the aerospace and defense related stock Lockheed Martin (NYSE:LMT). The company is estimated at $84.0 by Morningstar which represents a downside of 9.4%. LMT has a 7/10 rating and is an attractive dividend growth stocks with big values. The company raised dividends over 10 consecutive years and raised dividends in average with a double-digit yield. The payout is only at 43.9% at twelve-trailing month basis. The strong cash flow of $4.3 billion from last fiscal year is a solid basis for further dividend hikes. In 2011, the company paid $1.1 billion in dividends and bought $2.5 billion own shares. We like the strong cash flow of LMT and the high exposure to the U.S. economy (85% of sales are generated in the United States) as well as the networking to the government. This could be also a big burden if the U.S. government cuts military budgets due to financial spending problems. It could also an accelerator if the budgets would be raised in the long-run. In addition, LMT is one of the largest military supplier. The full free PDF-report is readable here.

    Lockheed Martin Corporation is a global security and aerospace company principally engaged in the research, design, development, manufacture, integration, and sustainment of technology systems and products. The Company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Solutions and Space Systems. 36.2% of sales are generated by electronic systems, 32.5% from aeronautics.

    Lockheed Martin (LMT) has a market capitalization of $30.16 billion. The company employs 123,000 people, generates revenue of $46,499.00 million and has a net income of $2,667.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,903.00 million. The EBITDA margin is 10.54 percent (operating margin 8.56 percent and net profit margin 5.74 percent).

    Financial Analysis: The total debt represents 17.04 percent of the company's assets and the total debt in relation to the equity amounts to 645.35 percent. Due to the financial situation, a return on equity of 118.59 percent was realized. Twelve trailing months earnings per share reached a value of $8.54. Last fiscal year, the company paid $3.25 in form of dividends to shareholders.

    Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.89, P/S ratio 0.65 and P/B ratio 29.95. Dividend Yield: 4.96 percent. The beta ratio is 0.93.

    Here is a short overview of the best yielding competitors:

    Raytheon Company (RTN) has a market capitalization of $18.22 billion. The company generates revenue of $24,857.00 million and has a net income of $1,897.00 million. The firm's EBITDA amounts to $3,304.00million. The EBITDA margin is 13.29% (operating margin 11.49% and net profit margin 7.63%).

    The total debt represents 17.81% of the company's assets and the total debt in relation to the equity amounts to 56.29%. Last fiscal year, a return on equity of 20.82% was realized. Twelve trailing months earnings per share reached a value of $5.75. Last fiscal year, the company paid $1.72 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 9.55, Price/Sales 0.73 and Price/Book ratio 2.27. Dividend Yield: 3.64%. The beta ratio is 0.71.

    Northrop Grumman (NOC) has a market capitalization of $17.01 billion. The company generates revenue of $26,412.00 million and has a net income of $2,086.00 million. The firm's EBITDA amounts to $3,775.00million. The EBITDA margin is 14.29% (operating margin 12.40% and net profit margin 7.90%).

    The total debt represents 15.54% of the company's assets and the total debt in relation to the equity amounts to 38.20%. Last fiscal year, a return on equity of 17.55% was realized. Twelve trailing months earnings per share reached a value of $7.80. Last fiscal year, the company paid $1.97 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 8.82, Price/Sales 0.64 and Price/Book ratio 1.69. Dividend Yield: 3.21%. The beta ratio is 1.10.

    General Dynamics (GD) has a market capitalization of $23.32 billion. The company generates revenue of $32,677.00 million and has a net income of $2,552.00 million. The firm's EBITDA amounts to $4,418.00 million. The EBITDA margin is 13.52% (operating margin 11.71% and net profit margin7.81%).

    The total debt represents 11.27% of the company's assets and the total debt in relation to the equity amounts to 29.70%. Last fiscal year, a return on equity of 19.23% was realized. Twelve trailing months earnings per share reached a value of $6.85. Last fiscal year, the company paid $1.88 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 9.64, Price/Sales 0.71 and Price/Book ratio 1.77. Dividend Yield: 3.11%. The beta ratio is 1.24.

    L-3 Communication (LLL) has a market capitalization of $6.98 billion. The company generates revenue of $15,169.00 million and has a net income of $968.00 million. The firm's EBITDA amounts to $1,801.00 million. The EBITDA margin is 11.87% (operating margin 10.30% and net profit margin6.38%).

    The total debt represents 26.62% of the company's assets and the total debt in relation to the equity amounts to 62.17%. Last fiscal year, a return on equity of 14.24% was realized. Twelve trailing months earnings per share reached a value of $9.05. Last fiscal year, the company paid $1.80 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 8.00, Price/Sales 0.46 and Price/Book ratio 1.08. Dividend Yield: 2.77%. The beta ratio is 0.96.

    The Boeing Company (BA) has a market capitalization of $54.02 billion. The company generates revenue of $68,735.00 million and has a net income of $4,011.00 million. The firm's EBITDA amounts to $6,888.00million. The EBITDA margin is 10.02% (operating margin 8.50% and net profit margin 5.84%).

    The total debt represents 15.47% of the company's assets and the total debt in relation to the equity amounts to 351.95%. Last fiscal year, a return on equity of 127.72% was realized. Twelve trailing months earnings per share reached a value of $5.77. Last fiscal year, the company paid $1.70 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 12.46, Price/Sales 0.77 and Price/Book ratio 15.01. Dividend Yield: 2.48%. The beta ratio is 1.23.

    Honeywell (HON) has a market capitalization of $46.99 billion. The company generates revenue of $36,529.00 million and has a net income of $1,865.00 million. The firm's EBITDA amounts to $3,547.00 million. The EBITDA margin is 9.71% (operating margin 6.25% and net profit margin5.11%).

    The total debt represents 18.98% of the company's assets and the total debt in relation to the equity amounts to 69.91%. Last fiscal year, a return on equity of 17.31% was realized. Twelve trailing months earnings per share reached a value of $2.66. Last fiscal year, the company paid $1.37 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 22.67, Price/Sales 1.29 and Price/Book ratio 4.32. Dividend Yield: 2.47%. The beta ratio is 1.35.

    Disclosure: I am long RTN, LMT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Themes: dividend-ideas Stocks: LMT
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