Lockheed Martin: Generating Value and Outperforming the Market

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Lockheed Martin Intrinsic Value – Lockheed Martin ($NYSE:LMT) is a United States-based global aerospace, defense, security, and advanced technologies company. The company has a long history of creating value for shareholders. Since its foundation, Lockheed Martin has been an outstanding American defense and aerospace company that has systematically generated a consistent return on capital above its cost of capital.

Thanks to the quality of its business and factors such as its solid balance sheet, strong cash flow generation, and active policy of shareholder remuneration, the company has increased its value much more than the average market’s growth. Thanks to its strong fundamentals and active shareholder policy, the company is well-positioned to continue creating value for shareholders in the future.

Market Price

Lockheed Martin is a leading aerospace and defense company that has generated value for shareholders and outperformed the market over the past year. Media sentiment towards the company is mostly positive, and on Wednesday, the stock opened at $489.8 and closed at $485.2, down by 1.8% from the previous day’s close of 494.1.

VI Analysis – Lockheed Martin Intrinsic Value

The company’s fundamentals reflect its long term potential, below analysis on LOCKHEED MARTIN are made simple by VI app. The fair value of LOCKHEED MARTIN share is around $429.8, calculated by VI Line. Now LOCKHEED MARTIN stock is traded at $485.2, a fair price overvalued by 13%.

VI 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

The company is a leading producer of fighter jets, missiles, and other military hardware. Investing in Lockheed Martin can be a good way to gain exposure to the US defense industry. The company is a large and well-established player in the industry, and is likely to continue to win major contracts from the US government. Lockheed Martin also has a strong presence in the growing space industry, which could provide investors with upside potential.