Stock fact sheet · data as of
Lockheed Martin Corporation (LMT): fair value, margin of safety and Wheel Score
Industrials · Aerospace & Defense · United States · Defensive
Is LMT undervalued?
Lockheed Martin Corporation (LMT) closed at 532.64 on 16 Oct 2026, 21% above the GLS average fair value of 439.20. Only 4 of the 9 models that produced a number value the shares above the current price. The margin of safety is negative, so the stock fails the "below fair value" rule of the Sunday Scan; a premium of this size is common for companies whose growth the models are conservative about.
There is a wide gap between GLS Growth (85.04) and 10 Cap (900.51). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files LMT under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for LMT
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 742.30 | +39% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 152.99 | -71% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 627.77 | +18% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 204.95 | -62% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 85.04 | -84% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 900.51 | +69% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 732.74 | +38% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 203.06 | -62% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 303.46 | -43% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -120.27 | -123% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 625.64 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Lockheed Martin Corporation scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability LMT scores 5.4/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 17.7%, ROE 74.6%, ROA 8.4% - with debt at 3.23 times equity and a free-cash-flow yield of 7.1%. Debt of 3.23 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 2.59% at a payout ratio of 51%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Aeronautics 40%, Rotary and Mission Systems 22%, Missiles And Fire Control 20% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 17.7% |
|---|---|---|---|
| GLS Moat | 5.4 / 10 | ROE | 74.6% |
| Debt / equity | 3.23 | ROA | 8.4% |
| Free-cash-flow yield | 7.1% | Payout ratio | 51% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 67: Good
With a Wheel Score of 67 - the Good band - Lockheed Martin Corporation falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 4/25, Health 18/20, Moat 8/15, Premium 19/20, Stability 19/20; Value (4/25) scores lowest.
Implied volatility is 34% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (19 of 20 points). Chain open interest is 23,538 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.4M shares a day on a market cap of $122.9B, with a beta of 0.10 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 4 / 25 | -21% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 8 / 15 | moat 5.4/10 | |
| Premium | 19 / 20 | implied volatility 34% | |
| Stability | 19 / 20 | 1.4M shares/day, $122.9B cap, beta 0.10 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Lockheed Martin Corporation reports earnings on 20 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The next ex-dividend date is 1 Dec 2026 (3.60 per share).
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Aerospace & Defense
The 12 companies below are the closest to Lockheed Martin Corporation by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BA The Boeing Company | 188.73 | 78.41 | -141% | 54Fair | $149.2B |
| GD General Dynamics Corporation | 337.03 | 286.36 | -18% | 66Good | $91.2B |
| HWM Howmet Aerospace Inc. | 219.75 | 111.60 | -97% | 68Good | $87.6B |
| NOC Northrop Grumman Corporation | 499.63 | 449.01 | -11% | 72Good | $71.0B |
| TDG TransDigm Group Incorporated | 1,109.77 | 1,238.79 | +10% | 75Good | $61.3B |
| RTX RTX Corporation | 186.47 | 122.56 | -52% | 66Good | $251.3B |
| HONA Honeywell Aerospace Inc | 163.11 | 69.57 | -134% | 45Weak | $51.7B |
| GE GE Aerospace | 312.00 | 187.47 | -66% | 61Fair | $323.7B |
| LHX L3Harris Technologies, Inc. | 240.50 | 226.04 | -6% | 76Good | $44.8B |
| HEI-A HEICO Corporation | 231.34 | 133.81 | -73% | 39No options | $43.0B |
| HEI HEICO Corporation | 308.64 | 155.07 | -99% | 58Fair | $43.0B |
| RKLB Rocket Lab USA, Inc. | 59.18 | - | - | 45Weak | $35.4B |
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Start free See the Sunday ScanQuestions about LMT
Is LMT undervalued right now?
No: at 532.64 the stock trades 21% above the GLS average fair value of 439.20 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of LMT and what does it mean?
LMT scores 67 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for LMT?
439.20 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Lockheed Martin Corporation report earnings next?
The next earnings report is due on 20 Oct 2026 (before the open), 4 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does LMT have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 23,538 open interest across all expiries and implied volatility of 34% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.