NYSE · Industrials

Lockheed Martin Corporation

LMT · Aerospace & Defense

$517.76

▲ 4.99 (0.97%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Lockheed Martin Corporation at $517.76.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability D

Gross Profit Margin 10.2%

Operating Margin 10.3%

Net Income Margin 6.7%

Fin. Health C

Years to Pay Off Debt 4.3 yrs

Working Capital vs Long-Term Debt -$18.5B

Working Capital $2.0B

Valuation F

Margin of Safety 0.0%

Price-to-Book 17.76x

Cash Flow B

Free Cash Flow $6.9B

CapEx % of Net Income 32.9%

Owner Earnings $8.4B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $119.4B

Enterprise Value $137.0B

P/E (TTM) 25.06

Dividend Yield 2.63%

Exchange NYSE

Key Margins

Gross Profit 10.2%

Operating Margin 10.3%

Net Margin 6.7%

Company Info

Sector Industrials

Industry Aerospace & Defense

Employees 123000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Lockheed Martin Corporation at $517.76.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $517.76, the stock trades at a 336% premium to its Graham Number of $118.72. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Lockheed Martin Corporation

Lockheed Martin Corporation, an aerospace and defense company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services in the United States, Europe, Asia, the Middle East, and internationally. The company operates through four segments: Aeronautics; Missiles and Fire Control (MFC); Rotary and Mission Systems (RMS); and Space. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The MFC segment provides air and missile defense systems; tactical missiles and precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; and ground vehicles. The RMS segment offers military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar and laser systems, sea and air-based mission and combat systems, command and control mission solutions, cyber solutions, simulation and training solutions, and services and supports surface ships. The Space segment provides satellites; space transportation systems; strategic, advanced strike, and defensive systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness and integrates space and ground global systems to help its customers gather, analyze, and securely distribute critical intelligence data. It serves primarily serves the U.S. government and international customers, as well as foreign military sales contracted through the U.S. government. The company was formerly known as The Lockheed Corporation and changed its name to Lockheed Martin Corporation in March 1995. Lockheed Martin Corporation was founded in 1912 and is based in Bethesda, Maryland.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	10.2% ▲	9.8%	12.5%	12.6%	N/A
Operating Margin %	10.3% ▲	9.9%	12.6%	12.7%	N/A
Net Income %	6.7% ▼	7.5%	10.2%	8.7%	N/A
Diluted EPS	21.49 ▼	22.31	27.55	21.66	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$59.8B	$55.6B	$52.5B	$52.9B	N/A
Total Debt	$21.7B ↑	$20.3B	$17.5B	$15.5B	N/A
Working Capital	$2.0B ▼	$2.4B	$3.6B	$5.1B	N/A
Years to Pay Debt	4.33	3.80	2.52	2.71	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$6.9B ▲	$5.3B	$6.2B	$6.1B	N/A
Owner Earnings	$8.4B	$8.6B	$10.0B	$8.8B	N/A
CapEx % of Net Income	32.9%	31.6%	24.4%	29.1%	N/A

Income Statement

	2025	2024	2023	2022
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	8,727,000	8,815,000	10,444,000	8,707,000
Net Income From Continuing Operation Net Minority Interest	5,017,000	5,336,000	6,920,000	5,732,000
Reconciled Depreciation	1,687,000	1,559,000	1,430,000	1,404,000
Reconciled Cost Of Revenue	67,429,000	64,113,000	59,092,000	57,697,000
EBITDA	8,727,000	8,815,000	10,444,000	8,707,000
EBIT	7,040,000	7,256,000	9,014,000	7,303,000
Net Interest Income	-1,118,000	-1,036,000	-916,000	-623,000
Interest Expense	1,118,000	1,036,000	916,000	623,000
Normalized Income	5,017,000	5,336,000	6,920,000	5,732,000
Net Income From Continuing And Discontinued Operation	5,017,000	5,336,000	6,920,000	5,732,000
Total Expenses	67,317,000	64,030,000	59,064,000	57,636,000
Total Operating Income As Reported	7,731,000	7,013,000	8,507,000	8,348,000
Diluted Average Shares	233,500	239,200	251,200	264,600
Basic Average Shares	232,700	238,300	250,300	263,700
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	5,017,000	5,336,000	6,920,000	5,732,000
Net Income Common Stockholders	5,017,000	5,336,000	6,920,000	5,732,000
Net Income	5,017,000	5,336,000	6,920,000	5,732,000
Net Income Including Noncontrolling Interests	5,017,000	5,336,000	6,920,000	5,732,000
Net Income Continuous Operations	5,017,000	5,336,000	6,920,000	5,732,000
Tax Provision	905,000	884,000	1,178,000	948,000
Pretax Income	5,922,000	6,220,000	8,098,000	6,680,000
Other Income Expense	-691,000	243,000	507,000	-1,045,000
Other Non Operating Income Expenses	-691,000	243,000	507,000	-1,045,000
Net Non Operating Interest Income Expense	-1,118,000	-1,036,000	-916,000	-623,000
Interest Expense Non Operating	1,118,000	1,036,000	916,000	623,000
Operating Income	7,731,000	7,013,000	8,507,000	8,348,000
Operating Expense	-112,000	-83,000	-28,000	-61,000
Other Operating Expenses	-112,000	-83,000	-28,000	-61,000
Gross Profit	7,619,000	6,930,000	8,479,000	8,287,000
Cost Of Revenue	67,429,000	64,113,000	59,092,000	57,697,000
Total Revenue	75,048,000	71,043,000	67,571,000	65,984,000
Operating Revenue	75,048,000	71,043,000	67,571,000	65,984,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	1,000	1,000	2,000
Ordinary Shares Number	229,000	234,000	240,000	254,000
Share Issued	230,000	235,000	242,000	254,000
Net Debt	17,579,000	17,787,000	16,017,000	13,000,000
Total Debt	21,700,000	20,270,000	17,459,000	15,547,000
Tangible Book Value	-8,897,000	-8,615,000	-6,176,000	-3,973,000
Invested Capital	28,421,000	26,603,000	24,294,000	24,813,000
Working Capital	2,027,000	2,429,000	3,584,000	5,104,000
Net Tangible Assets	-8,897,000	-8,615,000	-6,176,000	-3,973,000
Common Stock Equity	6,721,000	6,333,000	6,835,000	9,266,000
Total Capitalization	27,253,000	25,960,000	24,126,000	24,695,000
Total Equity Gross Minority Interest	6,721,000	6,333,000	6,835,000	9,266,000
Stockholders Equity	6,721,000	6,333,000	6,835,000	9,266,000
Gains Losses Not Affecting Retained Earnings	-7,542,000	-8,452,000	-8,803,000	-8,023,000
Other Equity Adjustments	-7,542,000	-8,452,000	-8,803,000	-8,023,000
Retained Earnings	14,034,000	14,551,000	15,398,000	16,943,000
Additional Paid In Capital	0	0	0	92,000
Capital Stock	229,000	234,000	240,000	254,000
Common Stock	229,000	234,000	240,000	254,000
Total Liabilities Net Minority Interest	53,119,000	49,284,000	45,621,000	43,614,000
Total Non Current Liabilities Net Minority Interest	29,784,000	29,864,000	28,684,000	27,727,000
Other Non Current Liabilities	5,337,000	5,446,000	5,231,000	6,826,000
Employee Benefits	3,915,000	4,791,000	6,162,000	5,472,000
Non Current Pension And Other Postretirement Benefit Plans	3,915,000	4,791,000	6,162,000	5,472,000
Long Term Debt And Capital Lease Obligation	20,532,000	19,627,000	17,291,000	15,429,000
Long Term Debt	20,532,000	19,627,000	17,291,000	15,429,000
Current Liabilities	23,335,000	19,420,000	16,937,000	15,887,000
Other Current Liabilities	3,913,000	3,635,000	2,134,000	2,089,000
Current Deferred Liabilities	11,440,000	9,795,000	9,190,000	8,488,000
Current Deferred Revenue	11,440,000	9,795,000	9,190,000	8,488,000
Current Debt And Capital Lease Obligation	1,168,000	643,000	168,000	118,000
Current Debt	1,168,000	643,000	168,000	118,000
Other Current Borrowings	1,168,000	643,000	168,000	118,000
Payables And Accrued Expenses	6,814,000	5,347,000	5,445,000	5,192,000
Current Accrued Expenses	3,184,000	3,125,000	3,133,000	3,075,000
Payables	3,630,000	2,222,000	2,312,000	2,117,000
Total Tax Payable					3,108,000
Accounts Payable	3,630,000	2,222,000	2,312,000	2,117,000
Total Assets	59,840,000	55,617,000	52,456,000	52,880,000
Total Non Current Assets	34,478,000	33,768,000	31,935,000	31,889,000
Other Non Current Assets	7,010,000	6,537,000	7,601,000	6,931,000
Non Current Deferred Assets	2,975,000	3,557,000	2,953,000	3,744,000
Non Current Deferred Taxes Assets	2,975,000	3,557,000	2,953,000	3,744,000
Goodwill And Other Intangible Assets	15,618,000	14,948,000	13,011,000	13,239,000
Other Intangible Assets	4,304,000	3,881,000	2,212,000	2,459,000
Goodwill	11,314,000	11,067,000	10,799,000	10,780,000
Net PPE	8,875,000	8,726,000	8,370,000	7,975,000
Accumulated Depreciation	-14,228,000	-13,493,000	-12,812,000	-12,163,000
Gross PPE	23,103,000	22,219,000	21,182,000	20,138,000
Construction In Progress	1,806,000	2,053,000	2,081,000	2,036,000
Machinery Furniture Equipment	10,941,000	10,399,000	9,908,000	9,400,000
Buildings And Improvements	10,209,000	9,624,000	9,049,000	8,555,000
Land And Improvements	147,000	143,000	144,000	147,000
Current Assets	25,362,000	21,849,000	20,521,000	20,991,000
Other Current Assets	815,000	584,000	632,000	533,000
Inventory	3,524,000	3,474,000	3,132,000	3,088,000
Finished Goods	198,000	196,000	188,000	192,000
Work In Process	2,667,000	2,617,000	2,338,000	2,297,000
Raw Materials	659,000	661,000	606,000	599,000
Receivables	16,902,000	15,308,000	15,315,000	14,823,000
Other Receivables	13,001,000	12,957,000	13,183,000	12,318,000
Accounts Receivable	3,901,000	2,351,000	2,132,000	2,505,000
Cash Cash Equivalents And Short Term Investments	4,121,000	2,483,000	1,442,000	2,547,000
Cash And Cash Equivalents	4,121,000	2,483,000	1,442,000	2,547,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	6,908,000	5,287,000	6,229,000	6,132,000
Repurchase Of Capital Stock	-3,000,000	-3,700,000	-6,000,000	-7,900,000
Repayment Of Debt	-642,000	-168,000	-115,000	-2,250,000
Issuance Of Debt	1,985,000	2,970,000	1,975,000	6,211,000
Capital Expenditure	-1,649,000	-1,685,000	-1,691,000	-1,670,000
End Cash Position	4,121,000	2,483,000	1,442,000	2,547,000
Beginning Cash Position	2,483,000	1,442,000	2,547,000	3,604,000
Changes In Cash	1,638,000	1,041,000	-1,105,000	-1,057,000
Financing Cash Flow	-4,942,000	-4,139,000	-7,331,000	-7,070,000
Cash Flow From Continuing Financing Activities	-4,942,000	-4,139,000	-7,331,000	-7,070,000
Net Other Financing Charges	-154,000	-182,000	-135,000	-115,000
Cash Dividends Paid	-3,131,000	-3,059,000	-3,056,000	-3,016,000
Net Common Stock Issuance	-3,000,000	-3,700,000	-6,000,000	-7,900,000
Common Stock Payments	-3,000,000	-3,700,000	-6,000,000	-7,900,000
Net Issuance Payments Of Debt	1,343,000	2,802,000	1,860,000	3,961,000
Net Long Term Debt Issuance	1,343,000	2,802,000	1,860,000	3,961,000
Long Term Debt Payments	-642,000	-168,000	-115,000	-2,250,000
Long Term Debt Issuance	1,985,000	2,970,000	1,975,000	6,211,000
Investing Cash Flow	-1,977,000	-1,792,000	-1,694,000	-1,789,000
Cash Flow From Continuing Investing Activities	-1,977,000	-1,792,000	-1,694,000	-1,789,000
Net Other Investing Changes	-328,000	-107,000	-3,000	-119,000
Capital Expenditure Reported	-1,649,000	-1,685,000	-1,691,000	-1,670,000
Operating Cash Flow	8,557,000	6,972,000	7,920,000	7,802,000
Cash Flow From Continuing Operating Activities	8,557,000	6,972,000	7,920,000	7,802,000
Change In Working Capital	186,000	-163,000	184,000	-585,000
Change In Other Working Capital	1,219,000	605,000	702,000	381,000
Change In Payables And Accrued Expense	1,086,000	38,000	18,000	1,422,000
Change In Payable	1,086,000	38,000	18,000	1,422,000
Change In Account Payable	1,341,000	-93,000	151,000	1,274,000
Change In Tax Payable	-255,000	131,000	-133,000	148,000
Change In Income Tax Payable	-255,000	131,000	-133,000	148,000
Change In Inventory	-286,000	-478,000	-44,000	-107,000
Change In Receivables	-1,833,000	-328,000	-492,000	-2,281,000
Changes In Account Receivables	-1,550,000	-219,000	373,000	-542,000
Other Non Cash Items	446,000	464,000	-473,000	200,000
Stock Based Compensation	304,000	277,000	265,000	238,000
Asset Impairment Charge	66,000	87,000	92,000	100,000
Deferred Tax	372,000	-588,000	-498,000	-757,000
Deferred Income Tax	372,000	-588,000	-498,000	-757,000
Depreciation Amortization Depletion	1,687,000	1,559,000	1,430,000	1,404,000
Depreciation And Amortization	1,687,000	1,559,000	1,430,000	1,404,000
Amortization Cash Flow		593,000	510,000	501,000	460,000
Amortization Of Intangibles		593,000	510,000	501,000	460,000
Depreciation		967,000	920,000	903,000	904,000
Operating Gains Losses	479,000		92,000	1,470,000	1,701,000
Pension And Employee Benefit Expense	479,000	0	0	1,470,000
Net Income From Continuing Operations	5,017,000	5,336,000	6,920,000	5,732,000

These metrics estimate what Lockheed Martin Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$118.72

Margin of Safety

Market Cap ÷ Company Value

4.05

P/B Ratio

17.76

Warren's Owner Earnings

$8.4B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$75.0B

vs > $1.5B revenue

❌ Strong Financial Condition

1.09x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

2.63%

vs Uninterrupted dividends

❌ Earnings Growth

-0.8% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

25.1x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

17.76x P/B (P/E×P/B: 445.1)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-120.39

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$372.57

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	32.9%	31.6%	24.4%	29.1%	N/A
Repurchase of Capital Stock	-$3.0B	-$3.7B	-$6.0B	-$7.9B	N/A
Free Cash Flow	$6.9B ▲	$5.3B ▼	$6.2B ▲	$6.1B •	N/A •
Warren's Owner Earnings	$8.4B	$8.6B	$10.0B	$8.8B	N/A

Peers & Industry Comparison

Aerospace & Defense — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
LMT	$517.76	$119.4B	25.06	10.2%	6.7%	$75.0B
BA Boeing Company (The)	$221.53	$174.6B	87.9	4.8%	2.5%	$92.2B
RTX RTX Corporation	$173.31	$233.4B	32.6	20.2%	8.0%	$90.4B
NOC Northrop Grumman Corporation	$569.52	$80.9B	17.9	20.5%	10.8%	$42.4B
GD General Dynamics Corporation	$348.82	$94.3B	22.0	15.2%	8.1%	$53.8B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.09%

Low — management has little skin in the game

Return on Equity (ROE)

74.6%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

8.4%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$3.0B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+7.1% YoY

Debt is roughly stable

Leadership Team

James Taiclet Jr.

Chairman, President & CEO

Age 64

Pay: $9,785,663

0.195% of net income

Evan Scott

Senior VP & CFO

Age 47

Pay: $2,382,567

0.047% of net income

Frank St. John

Chief Operating Officer

Age 58

Pay: $4,056,161

0.081% of net income

Kevin James O'Connor

Senior Vice President, General Counsel & Corporate Secretary

Age 57

Pay: $2,496,841

0.050% of net income

Timothy Cahill

President of Missiles & Fire Control

Age 59

Pay: $2,953,419

0.059% of net income

Top Institutional Holders

Institution	% Owned	Shares
State Street Corporation	14.60%	33,666,918
Vanguard Group Inc	9.23%	21,271,281
Blackrock Inc.	7.68%	17,709,735
Charles Schwab Investment Management, Inc.	3.75%	8,638,936
Morgan Stanley	2.48%	5,728,551
Geode Capital Management, LLC	2.12%	4,894,549
Bank of America Corporation	1.30%	2,994,910
FMR, LLC	0.96%	2,201,979

Risk Analysis

Beta (Market Risk)

0.10

Low volatility — more stable than the market

Short Interest

1.3% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

2.76x

High leverage — significant financial risk

Current Ratio

1.14x

Adequate liquidity

52-Week Price Range

Low: $410.11 Current: $517.76 High: $692.00

Currently at 38% of 52-week range

360investing