LMT Stock - is Lockheed Martin a Good Buy Today - Great Dividend Stock 2019 | Summary and Q&A

TL;DR

Lockheed Martin (LMT) is an aerospace and defense company with strong revenue growth across its segments, making it an attractive defensive stock with good dividend payments.

Key Insights

• 💪 Lockheed Martin's revenue is diversified across segments, with a strong focus on aeronautics.
• 🌥️ The company's largest customer is the US government, reducing customer concentration risk.
• ❓ Revenue growth has been consistent and is expected to continue.
• 💪 The stock's historical performance shows strong returns compared to the broader market.
• 💄 Lockheed Martin offers a decent dividend yield, making it attractive for income-seeking investors.
• 🙃 The fair value calculation suggests potential upside from the current stock price.
• ❓ Comparing the company's valuation to competitors can provide additional insights for investment decisions.

Transcript

Hi I'm Jimmy in this video I'm going to walk through a quick analysis of Lockheed Martin stock ticker symbol LMT Lockheed Martin is an aerospace and defense company and it pays a pretty good dividend. Now I actually got quite a few videos asking for an analysis of Lockheed Martin. And given the question marks surrounding how long the stock market c... Read More

Questions & Answers

Q: What are the main segments of Lockheed Martin?

Lockheed Martin operates in aeronautics, rotary and mission systems, space, and missiles and fire control.

Q: Who are the largest customers of Lockheed Martin's aeronautics division?

The US government accounts for about 63% of the aeronautics division's revenue.

Q: What is the main product of Lockheed Martin's aeronautics division?

Fighter planes, particularly the F-35, are the main products sold by the aeronautics division to the US government and other government agencies.

Q: How has Lockheed Martin's revenue growth been historically?

Revenue across all segments has shown consistent growth, even during the 2008 recession, which demonstrates the company's resilience.

Q: What is the fair value of Lockheed Martin stock?

Based on a discounted cash flow analysis, the fair value of Lockheed Martin stock is estimated to be around $408 per share, indicating potential upside from its current price.

Q: How does Lockheed Martin's valuation compare to its competitors?

Lockheed Martin has a PE ratio of about 18x, which is slightly cheaper than the S&P 500 but more expensive than some competitors like Northrop Grumman and Raytheon.

Q: Is Lockheed Martin a good buy at its current price?

The analysis suggests that Lockheed Martin is a good addition to most portfolios, given its growth prospects and defensive nature, but individual investors may want to compare it with other competitors like Northrop Grumman (NOC) before making a final decision.

Summary & Key Takeaways

• Lockheed Martin operates in four main segments: aeronautics, rotary and mission systems, space, and missiles and fire control.

• The aeronautics division is the largest contributor to revenue, primarily selling fighter planes to the US government, with consistent revenue growth expected.

• The rotary and mission systems division designs and manufactures military and commercial helicopters, showing good revenue growth in 2019.

• The space division designs and builds satellites and is involved in various partnerships and programs, experiencing steady revenue growth.

• The missiles and fire control division produces defense systems and has seen a significant increase in revenue driven by the hypersonic missiles and precision fire programs.