Lockheed Martin Corporation LMT

Name: LMT Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored March 14, 2026

Price at analysis: $625.79

Crucible Score

56.5

Quality × Value Composite

KQI — Quality

62.6

C+

Fundamental Quality Index

KVI — Value

48.9

D+

Valuation Attractiveness Index

Crucible Verdict — LMT

Lockheed Martin Corporation earns a middling Crucible Score of 56.5, reflecting a stark divide between its dominant market position (80) and weak value proposition (48.9). LMT trades at a 7% discount to fair value despite strong earnings execution under CEO Taiclet's performance-driven leadership. The defense giant's pricing power remains constrained by government contract pressures, limiting upside potential even with solid operational fundamentals.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

63.8

Growth Profile

60.6

Moat Durability

53.1

Management Effectiveness⚠

69.1

Diversification & Resilience

55.0

Market Position

80.0

Weakest dimension: Moat Durability (53.1)

◆ KVI Value Dimensions

DCF Margin of Safety

62.4

FCF Yield & Cash Returns

50.1

Relative Valuation

66.2

Growth-Adjusted Value

25.4

Historical Valuation

9.0

Macro Context

56.5

◆ DCF Valuation Scenarios

Bear Case

$487.32

Base Case

$668.45

Bull Case

$905.18

Price at Analysis

$625.79

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$487.32	3.0%	9.5%	5.6%
🟢 Base	$668.45	5.0%	10.5%	5.4%
🟢 Bull	$905.18	7.0%	12.0%	5.2%

Key Assumptions: WACC is low (5.2-5.6%) driven by LMT's very low beta of 0.20 and current risk-free rate of 4.39%, yielding cost of equity near 5.4-5.6% blended with after-tax cost of debt. Revenue growth anchored to trailing 5-year CAGR of ~2.9% with bear at 3%, base at 5% (reflecting elevated defense spending environment), and bull at 7%. Operating margins range from slight compression (9.5% bear) to expansion toward historical highs (12% bull), with base at 10.5% reflecting recent normalization from the 10.3% most recent year. D&A and capex intensity held near historical ~2.2% of revenue.

◆ Financial Snapshot

Profitability

Gross Margin10.2%

Operating Margin10.3%

Net Margin6.7%

ROIC17.2%

ROE1.1%

Balance Sheet

Balance SheetCR: 1.09

Cash ConversionFCF/EPS: 1.38x

Capital IntensityCapex/Rev: 2.2%

Altman Z-Score3.70 (Safe)

Piotroski F-Score6/9 (Good)

Growth

Revenue CAGR2.9% CAGR

Earnings CAGR-5.6% CAGR

Growth ConsistencyCV: 0.69

Segment Breadth4/4 growing (100%)

Quarterly TrendRev↑, Margin↑

Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOJames D. Taiclet · 5 years

Compensation86% performance-based

Insider ActivityNeutral

Capital AllocationROIC 17.2% vs WACC 4.1%

Earnings Beat Rate83% (17/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 14, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.