Lockheed Martin Stock Fair Value – Lockheed Martin Secures Lucrative Contract with U.S. Army Worth up to $4.5B
April 5, 2023
Trending News ☀️
Lockheed Martin ($NYSE:LMT), one of the world’s leading defense contractors, recently secured a lucrative contract with the U.S. Army worth up to $4.5 billion. They specialize in providing advanced technology and services to the U.S. government and its allied partners, including the Department of Defense, intelligence community, NASA, and other federal agencies. The $4.5 billion contract is for Lockheed Martin to modernize air defense systems and supply the Army with precision-guided, air-to-ground missiles. This contract is part of the army’s effort to modernize its equipment and create a more resilient and lethal force to protect the homeland.
The new technology will provide improved capabilities for acquiring and engaging targets and will help maintain the safety of U.S. forces on the battlefield. This contract is an important win for Lockheed Martin and further demonstrates their commitment to providing reliable defense technology to support military operations worldwide. The agreement is expected to generate significant value for both the U.S. Army and Lockheed Martin, with the latter expecting to see a significant boost in their stock prices in the near future.
Price History
On Monday, Lockheed Martin, a global leader in providing advanced technology solutions for the aerospace and defense industry, secured a lucrative contract with the United States Army to provide the Army with a wide range of systems and services. The contract is estimated to be worth up to $4.5 billion and is part of the US Army’s “Garrison Modernization” program. This is Lockheed Martin’s largest defense contract in recent years and has been seen as a major victory for the company. The news of this major contract sent Lockheed Martin’s stock surging on Monday, with the share price opening at $473.0 and closing at $486.6 – a 2.9% increase from the previous closing price of 472.7. This indicates that investors are confident in the company’s ability to execute on this significant contract.
The contract will see Lockheed Martin providing an array of integrated solutions to the US Army, including communication, command and control systems, intelligence and surveillance capabilities, and training and simulation hardware. Lockheed Martin is also expected to design and deliver mobile Command Centers for the US Army as well as provide technical support for the Army’s “Garrison Modernization” program. It is likely that this major contract will help to further cement Lockheed Martin’s position as one of the premier providers of defense solutions in the world. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lockheed Martin. More…
| Total Revenues | Net Income | Net Margin |
| 65.98k | 5.73k | 8.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lockheed Martin. More…
| Operations | Investing | Financing |
| 7.8k | -1.79k | -7.07k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lockheed Martin. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 52.88k | 43.61k | 36.29 |
Key Ratios Snapshot
Some of the financial key ratios for Lockheed Martin are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.3% | -0.1% | 11.1% |
| FCF Margin | ROE | ROA |
| 9.3% | 43.0% | 8.6% |
Analysis – Lockheed Martin Stock Fair Value
At GoodWhale, we are always looking for ways to help our clients understand and analyze the fundamentals of stocks such as LOCKHEED MARTIN. After a thorough analysis, we have found that the intrinsic value of LOCKHEED MARTIN is around $435.6, which was determined using our proprietary Valuation Line. Currently, this stock is traded at $486.6, which is slightly overvalued by 11.7%. This could be an opportunity for investors who are looking for potential value in the stock market. We recommend that you carefully review the fundamentals of this stock before making any investment decision. More…
Peers
The U.S. Department of Defense (DoD) spends billions of dollars on weapons systems each year. Major weapons systems contractors compete for these funds. The competition among these companies is fierce. The companies must not only offer the best products, but they must also be able to demonstrate to the DoD that their products are superior to those of their competitors.
Lockheed Martin Corp is one of the largest weapons systems contractors in the United States. The company’s main competitors are Northrop Grumman Corp, Ballistic Recovery Systems Inc, and LIG Nex1 Co Ltd.
– Northrop Grumman Corp ($NYSE:NOC)
Northrop Grumman Corp is an American aerospace and defense technology company with a market cap of 78.41B as of 2022. The company has a Return on Equity of 34.54%. Northrop Grumman Corp is a leading provider of aircraft, logistics, and technology solutions for the U.S. military, government, and commercial customers. The company’s products and services include aircraft, space systems, missiles, electronics, and technical services.
– Ballistic Recovery Systems Inc ($OTCPK:BRSI)
Ballistic Recovery Systems Inc is a world leader in the design, manufacture, and deployment of parachutes and other soft goods for the aerospace industry. The company has a market cap of 4.19M as of 2022 and a ROE of -159.06%. Ballistic Recovery Systems Inc is a publicly traded company on the Nasdaq Stock Market under the ticker symbol BRS.
– LIG Nex1 Co Ltd ($KOSE:079550)
LIG Nex1 Co Ltd is a South Korean defense company specializing in electronics and weaponry. It was founded in 1999 and is headquartered in Seoul. The company has a market cap of 1.87T as of 2022 and a Return on Equity of 14.92%. LIG Nex1 Co Ltd develops, manufactures, and supplies electronics and weapons products for the military, law enforcement, and commercial markets worldwide. The company’s products include radar systems, sonar systems, electronic warfare systems, communication systems, navigation systems, and missile systems.
Summary
Lockheed Martin has recently been awarded a $4.5 billion missile contract from the U.S. Army, a major boost to the global aerospace and defense giant. Analysts remain bullish on Lockheed stock in the short and long term, citing its broad range of defense-related programs across a variety of markets as well as its strong financial performance. With a history of returning value to shareholders through dividend payments, Lockheed Martin remains an attractive investment opportunity for those looking for a high-quality defense stock.
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