What is the AI rating for LMT?

LOCKHEED MARTIN CORP (LMT) has an AI rating of STRONG BUY with 87% confidence, based on fundamental analysis of SEC EDGAR filings.

What are the key strengths of LMT?

Exceptional ROE of 74.6% demonstrates highly efficient use of shareholder capital. Strong free cash flow of $6.9B with 9.2% FCF margin provides financial flexibility. Outstanding interest coverage ratio of 30.3x indicates minimal financial distress risk despite 3.23x debt/equity leverage

What are the risks of investing in LMT?

High leverage with 3.23x debt/equity ratio and $21.7B long-term debt concentration risk. Declining net income (-6.0% YoY) and diluted EPS (-3.7% YoY) suggest profitability pressures despite revenue growth. Tight liquidity position with current ratio of 1.09x and quick ratio of 0.94x leaves limited buffer for operational disruptions

LMT Stock Analysis - LOCKHEED MARTIN CORP AI Rating & Fundamentals

Name: LOCKHEED MARTIN CORP (LMT) Stock
Brand: LOCKHEED MARTIN CORP
Rating: 5 (1 reviews)

Investment Thesis

Lockheed Martin demonstrates exceptional financial health with robust profitability, strong cash generation, and disciplined capital allocation. The company generates substantial free cash flow ($6.9B) while maintaining excellent interest coverage (30.3x), indicating significant capacity to service its leveraged balance sheet and return capital to shareholders.

LMT Strengths

+ Exceptional ROE of 74.6% demonstrates highly efficient use of shareholder capital
+ Strong free cash flow of $6.9B with 9.2% FCF margin provides financial flexibility
+ Outstanding interest coverage ratio of 30.3x indicates minimal financial distress risk despite 3.23x debt/equity leverage
+ Consistent revenue growth of 5.6% YoY in capital-intensive defense sector demonstrates stable demand
+ Operating margin of 10.3% with gross margin of 10.2% shows pricing power and operational efficiency

LMT Risks

! High leverage with 3.23x debt/equity ratio and $21.7B long-term debt concentration risk
! Declining net income (-6.0% YoY) and diluted EPS (-3.7% YoY) suggest profitability pressures despite revenue growth
! Tight liquidity position with current ratio of 1.09x and quick ratio of 0.94x leaves limited buffer for operational disruptions
! Defense sector cyclicality and geopolitical/budget appropriation uncertainty
! Significant insider selling activity with 30 Form 4 filings in 90 days may signal management confidence concerns

Key Metrics to Watch

* Operating cash flow trends and working capital management relative to revenue growth
* Net margin recovery and identification of drivers behind 6% net income decline
* Debt reduction trajectory and leverage ratio improvement to improve financial flexibility
* Current and quick ratio improvements to strengthen liquidity position
* Operating income stability amid defense budget negotiations and contract performance

LMT Financial Metrics

Revenue

$75.0B

Net Income

$5.0B

EPS (Diluted)

$21.49

Free Cash Flow

$6.9B

Total Assets

$59.8B

Cash Position

$4.1B

LMT Profitability Ratios

Gross Margin 10.2%

Operating Margin 10.3%

Net Margin 6.7%

ROE 74.6%

ROA 8.4%

FCF Margin 9.2%

LMT Balance Sheet & Liquidity

Current Ratio

1.09x

Quick Ratio

0.94x

Debt/Equity

3.23x

Debt/Assets

88.8%

Interest Coverage

30.32x

Long-term Debt

$21.7B

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.

Data Source: SEC EDGAR | Analysis Date: Mar 18, 2026 | Data as of: 2025-12-31 | Powered by Claude AI