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Independent research · Est. October 2026
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Stock X-Ray · Industrials · S&P 500 Full Coverage — Phase 1

Lockheed Martin (LMT)

X-Ray dated Oct 28, 2026 · Share price as of Oct 28, 2026 intraday, when the valuation snapshot was captured · Financials from SEC filings (EDGAR) · Valuation multiples from a labelled secondary source
The verdict — valuation label: UNDERVALUED

Forward P/E is 19.49x against a peer median of 24.34x, a ratio of 0.80x — below the fair range — with trailing P/E 22.12x and PEG 1.21. Latest-quarter revenue grew 11.3% year over year (PRIMARY, EDGAR), at the group pace. Value-trap check: revenue is growing, not shrinking, and the group median growth is positive, so the discount is not explained by falling sales. Delivered demand check: the aerospace & defense group's median growth was 11.0% year over year — demand rising.

19.5×
Forward P/E — price vs next year’s expected earnings (secondary source)
24.3×
Peer median forward P/E — closest comparable companies
22.1×
Trailing P/E — price vs the last twelve months of earnings
1.8×
Price / sales

What would change this label: Move to FAIRLY PRICED if the forward P/E rises to about 21.9x or above (0.90x the peer median) at unchanged estimates, or if revenue growth falls below 0% year over year for two quarters, which would start to explain the discount. Move further from fair value if the forward P/E falls below about 18.3x (0.75x the peer median) while revenue growth stays above 11% year over year.

In simple words

Lockheed Martin builds fighter jets, missiles and space systems, mostly for the US government, and its sales grew 11.3% in the latest quarter, matching similar companies. Its shares nevertheless cost less per dollar of expected earnings than those peers charge. Growing at the group pace for a below-group price makes the shares look undervalued.

Words we use, in plain English: P/E ratio — the share price divided by earnings per share; how many dollars you pay for one dollar of yearly profit. Forward P/E — the same, using next year’s expected earnings. Free cash flow — cash a company has left after running the business and buying equipment. TTM — the last twelve months. Drawdown — the worst fall from a peak to the low after it.
The share price vs the market — six years
Lockheed Martin (LMT)S&P 500 (SPY)
731121521922322021202220232024202520262020-09-012026-10-27

Both lines start at 100 on 2020-09-01. Over the full window Lockheed Martin returned +61.06% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Lockheed Martin: -33.2% (2024-10-21 to 2025-07-22). Source: Nasdaq official daily history.

What the label rests on

Forward P/E is 19.49x against a peer median of 24.34x, a ratio of 0.80x — below the fair range — with trailing P/E 22.12x and PEG 1.21. Latest-quarter revenue grew 11.3% year over year (PRIMARY, EDGAR), at the group pace. Value-trap check: revenue is growing, not shrinking, and the group median growth is positive, so the discount is not explained by falling sales. Delivered demand check: the aerospace & defense group's median growth was 11.0% year over year — demand rising. The company’s forward P/E is 19.5× against a peer median of 24.3×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the aerospace & defense group's median latest-quarter revenue growth was 11.0% year over year (SEC filings) — demand rising. This company grew at the group pace, at 11.3%. Latest-quarter sales growth was +11.3% versus a year earlier (SEC filings).

CompanyPrice (Oct 28, 2026)Forward P/ETrailing P/E
Lockheed Martin (LMT)$623.0519.5×22.1×
BA—158.6×17.9×
GD—20.2×21.6×
NOC—18.7×17.3×
HWM—33.1×42.3×
TDG—24.3×34.4×
Peer median24.3×

Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.

Sales, profit and cash

Sales each quarter, and the gross margin
SalesGross margin (right axis)
$0B$8B$15B$23B0%9%17%Sep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025Sep 2026

Gross margin = gross profit divided by sales, from SEC filings.

Cash left over each quarter (free cash flow)
PositiveNegative
$-4B$0B$4BSep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025Sep 2026

Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.

QuarterSalesGross marginNet incomeEPS (GAAP, diluted)Free cash flow
Q/E Sep 2026
2026-09-27
$20.7B11.8%$1.8B7.97$3.0B
Q/E Jun 2026
2026-06-28
$20.1B12.2%$1.8B7.94$2.9B
Q/E Mar 2026
2026-03-29
$18.0B11.5%$1.5B6.44$-291M
Q/E Dec 2025
2025-12-31
$20.3B11.4%$1.3B—$2.8B
Q/E Sep 2025
2025-09-28
$18.6B12.0%$1.6B6.95$3.3B
Q/E Jun 2025
2025-06-29
$18.2B4.0%$342M1.46$-150M
Q/E Mar 2025
2025-03-30
$18.0B12.9%$1.7B7.28$955M
Q/E Dec 2024
2024-12-31
$18.6B3.7%$527M—$441M
Q/E Sep 2024
2024-09-29
$17.1B12.4%$1.6B6.80$2.1B
Q/E Jun 2024
2024-06-30
$18.1B11.8%$1.6B6.85$1.5B
Q/E Mar 2024
2024-03-31
$17.2B11.6%$1.5B6.39$1.3B
Q/E Dec 2023
2023-12-31
$18.9B12.2%$1.9B—$1.7B

The last twelve reported quarters. Full 25-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.

Earnings: getting better or worse?

Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.

Dec 2022
—
Mar 2023
6.61
Jun 2023
6.63
Sep 2023
6.73
Dec 2023
—
Mar 2024
6.39
Jun 2024
6.85
Sep 2024
6.80
Dec 2024
—
Mar 2025
7.28
Jun 2025
1.46
Sep 2025
6.95
Dec 2025
—
Mar 2026
6.44
Jun 2026
7.94
Sep 2026
7.97

Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.

Key facts

ItemValue
Company (legal name in filings)LOCKHEED MARTIN CORP
Chief executiveJames Taiclet (source: https://en.wikipedia.org/wiki/James_Taiclet)
SectorIndustrials — Aerospace & Defense — builds fighter jets, missiles and space systems, mainly for the US government
Share price (Oct 28, 2026)$623.05
Market value (market cap)$143.9B — share price times shares outstanding of 231,004,640 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest))
Sales, last twelve months$79.1B
Net income, last twelve months$6.5B
Free cash flow, last twelve months$8.4B
Latest reported quarterQ/E Sep 2026 (of 25 quarters in the data pack)
Six-year price return vs S&P 500+61.06% vs +118.28%
Worst peak-to-trough fall-33.2% (2024-10-21 to 2025-07-22)

What we could not verify

  • TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
  • Own-history P/E (5-year median): not computed in the Phase 1 batch — UNVERIFIED
  • Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.

The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.

Sources

  • SEC EDGAR submissions — Filing index; company legal name. https://data.sec.gov/submissions/CIK0000936468.json
  • SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares. https://data.sec.gov/api/xbrl/companyfacts/CIK0000936468.json
  • Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates. https://api.nasdaq.com/api/quote/LMT/historical?assetclass=stocks
  • Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.

Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.

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