Lockheed Martin Corporation (LMT)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Lockheed Martin as a defense franchise first and a stock second. The business designs and sustains complex aerospace and defense systems across aeronautics, missiles, rotary systems, and space; that installed base and long program lives give it a durable competitive position. The latest filed figures are encouraging: in fiscal Q3 2026, the quarter ended 2026-09-27, revenue was $20.7B, net income $1.8B, and diluted EPS $7.97, versus revenue $18.6B, net income $1.6B, and diluted EPS $6.95 in fiscal Q3 2025. Free cash flow is $8.4B trailing twelve months, a 5.7% FCF yield, and the FairStock Piotroski score is 9/9. But Graham would flinch at the price. At the 2026-10-26 close of $635.20, the FairStock P/E is 23.44, P/B is 16.66, and the Graham Number is $152.46, a negative margin of safety of -296.29%. The balance sheet uses leverage: debt-to-equity is 2.34, while ROCE is only 8.64%; the 89.17% ROE is flattered by a small book equity. The computed Lynch category is SLOW GROWER — Shrinking, with profit down -6.0% a year over five years and revenue up 2.8%, so the recent quarter must be judged against a weak long-term record. The PEG of 0.05 is distorted by a volatile profit growth figure and I would not rely on it. The 2.59% dividend and 0.10 beta add stability, but this is not a bargain by asset or book value. I would call it a high-quality franchise priced for continued execution, not for adversity.

In plain English: Lockheed Martin makes aerospace and defense equipment such as combat aircraft, missiles, helicopters, and space systems. The business looks financially strong, with growing recent sales and profits and solid cash generation, but it carries a lot of debt. At $635.20, the shares look expensive on a conservative accounting value and only moderate versus earnings, so the price depends on continued profit delivery.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-27) · fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer