Lockheed Martin: Strength And Opportunity In A Geopolitically Complex World

Eliana Scialabba
504 Followers

Summary

  • Lockheed Martin combines strategic leadership and stable operations, with solid growth in key programs, like the F-35 and precision missiles in Q1 2025.
  • Valuation is reasonable, with a P/E FWD of 17.1x and PEG of 1.87, offering better profitability and cash flow than competitors like RTX (P/E > 24x) and Northrop Grumman (PEG 4.5x).
  • Lockheed Martin excels in profitability: ROE over 70%, EBIT margin of 13.9%, and strong free cash flow margin (9.9%), supporting an attractive 2.7% dividend and ongoing buybacks.
  • For long-term investors, Lockheed Martin is a solid, defensive choice with stable growth, technological innovation, and strong shareholder returns, ideal for a 3-5 year horizon.

La entrada a las instalaciones de Lockheed Martin en Sunnyvale, California, EE. UU.

JHVEPhoto/iStock Editorial via Getty Images

Investment Thesis

Lockheed Martin (NYSE:LMT) combines operational predictability with strategic leadership in a global context that demands more defense and more technology.

In Q1 2025, the company had revenues of $17.96B (+4.5% YoY) and an EPS of $7.28 (+13.9% YoY), with sustained growth

This article was written by

504 Followers
I am an individual investor with over five years of experience in personal investing, holding a PhD in Economics from UCEMA. My investment approach focuses on value companies with solid long-term potential. I share my knowledge with the community by offering analysis to support individual investors. My articles reflect personal opinions and do not constitute financial advice.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About LMT Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on LMT

Related Stocks

SymbolLast Price% Chg
LMT
--