NYSE:LMT
$85.70
(3/18 1:15PM)
+1.0%
| Open | $84.74 |
Mkt Cap | $31.9 Billion |
| High | $85.73 |
52Wk High | $87.06 |
| Low | $84.34 |
52Wk Low | $65.21 |
| Volume | 1.4 Million |
Avg Vol 10D | 2.7 Million |
Ockham's Rating/Recommendation Summary
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LMT Revenue
As a value investing shop, we are interested in seeing how LMT's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.08x and the low end of the range at 0.73x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for LMT of 0.69x is significantly below its average levels historically. In fact, with a current price of $83.09, LMT is a full 24% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for LMT.
LMT Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. LMT is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 9 years of cash earnings levels for LMT to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 13.87 and a 9.47 low over the same period.
Now that LMT’s current price is $83.09 and its Price to Cash Earnings ratio is 8.04, we are very positive on its outlook from the cash earnings perspective. In fact, LMT is now trading a full 32% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why LMT has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
LMT Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In LMT’s case, the estimated annual dividend is $2.52 resulting in a current dividend yield of 3.03%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from LMT against the historic high and low levels over the past 10 years. The highest dividend yield from LMT over this period was 4.06% while the lowest dividend yield was 0.62% If you are looking for some “bang for your buck” then a dividend yield of 29.49% above the historical median should be enticing. LMT receives a positive boost in our view because as you know, equity at its core is simply a claim on future dividends.
InBusiness With Margaret Brennan discussing annual events surrounding LMT
LMT was discussed in regards to 52-week news on InBusiness With Margaret Brennan, so be sure to look into this headline news a little closer.
At present, Ockham has a valuation stance of Undervalued on LMT, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Lockheed Martin Corporation has actually sunk a bit in comparison to the others.
“… We have news that LOCKHEED MARTIN's f-35 jet fighters face substantial risk of not being delivered on time. That's what the government accountability office told the senate ... …”
See More News on LMT from Squawk On The Street
The latest news from Squawk On The Street on LMT is available through Ockham's news analytics platform RazorWire.
At present, Ockham has a valuation stance of Undervalued on LMT, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Lockheed Martin Corporation has actually sunk a bit in comparison to the others.
“… LOCKHEED MARTIN upgraded to neutral from underperform at mcquarry research, I believe that is the australian company known for buying american toll roads. …”
Income Investors: A Discussion of LMT and Dividends on Mad Money
Dividends are a management decision and can be seen as a signal of strength or weakness depending on the latest news. RazorWire captured a discussion of LMT's dividends recently on Mad Money.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, LMT has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Lockheed Martin Corporation will beat the market in the foreseeable future. We consider LMT as Undervalued at the current price of $78.85. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… General mills, LOCKHEED MARTIN, entergy and verizon. > > first of all, this is an incredibly well set up portfolio. Why? …”
Analysts' Take on Lockheed Martin Corporation Mentioned on Squawk On The Street
When the television or blog talks about an analysts' opinion it could have a major impact on the stock.
Based on our methodology, Lockheed Martin Corporation should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of LMT, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… underweight at piper jaffray. The firm's price target is 43. LOCKHEED MARTIN downgraded to neutral from buy at broadpoint ametek. …”
See Who is Talking About News from LMT on Asia Morning Call
News has broken via the television and viral blogs regarding LMT, so investors should take an interest in learning what was said.
We noticed recently that in comparison to all other stocks we analyze in the news; LMT has received less coverage from the financial media in business television and blogs. Based on our methodology, Lockheed Martin Corporation should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Defense secretary tells the military to cut orders for LOCKHEED MARTIN jets. Lockheed is cutting more than 1000 jobs so units can try to become more efficient, and it is not the ... …”
LMT's Costs at the Forefront on Bloomberg News
A news report on Lockheed Martin Corporation's cost structure occurred recently on Bloomberg News, so investors should take note.
The Motley Fool CAPS data suggests that investors believe Lockheed Martin Corporation will beat the market in the foreseeable future. We consider LMT as Undervalued at the current price of $76.62. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, LMT has been less covered in the news compared to the rest of our universe of stocks.
“… LOCKHEED MARTIN cutting 1200 jobs in the united states. Shares dropping almost a full percentage point. Trading at $76. 90. > > we are digesting some numbers u. S. …”
Lockheed Martin Corporation Was Talked About by Bloomberg News
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Lockheed Martin Corporation.
At present, Ockham has a valuation stance of Undervalued on LMT, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Lockheed Martin Corporation has actually sunk a bit in comparison to the others.
“… headlines coming in about LOCKHEED MARTIN, we are learning planning to cut up to 1200 jobs. We will continue to follow this story and bring you more developments when we get ... …”
Interested in LMT? See What the Pundits Said on Squawk On The Street
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Lockheed Martin Corporation.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on LMT, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. In comparison to the other stocks that we follow, Lockheed Martin Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… LOCKHEED MARTIN cut to sell from neutral at goldman sachs, giving back about 1. 5% here today. The auto parts maker an almost buyer of germany's opal or I should say gm's opal ... …”
The Latest News for LMT Was Just on Fast Money
The latest news on Fast Money in regards to LMT came through on RazorWire recently.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Lockheed Martin Corporation has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on LMT, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… LOCKHEED MARTIN, up 1%. > > this is still a very dangerous world and the afghanistan going forward. I love the defense space. > > > here it is on a silver platter. …”
Countdown to the Closing Bell Has News on LMT
The latest news from Countdown to the Closing Bell on LMT is available through Ockham's news analytics platform RazorWire.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Lockheed Martin Corporation has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on LMT, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… cheryl: stock of the day is LOCKHEED MARTIN. Up after the company announced egypt signed a deal to buy up to 24 advanced lockheed f-16 jets. Worth as much as 3. 2 billion. …”