| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 232.40 | -50 |
Lockheed Martin Corporation (LMT.SW) is a global leader in aerospace, defense, and security solutions, headquartered in Bethesda, Maryland, USA. Listed on the Swiss Exchange (SIX), the company operates through four key segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Lockheed Martin specializes in advanced technology systems, including combat aircraft (such as the F-35), missile defense systems, military helicopters, satellites, and cybersecurity solutions. With a strong focus on U.S. government contracts and foreign military sales, the company plays a pivotal role in national security and global defense infrastructure. Founded in 1912, Lockheed Martin has established itself as a cornerstone of the aerospace and defense industry, leveraging innovation and long-term government partnerships to maintain its market dominance. The company’s diversified portfolio ensures resilience amid geopolitical uncertainties, making it a critical player in the Industrials sector.
Lockheed Martin presents a stable investment opportunity due to its entrenched position in defense contracting, consistent government funding, and strong cash flow generation. With a market cap of $98.38B and a beta of 0.47, the stock exhibits lower volatility compared to broader markets, appealing to risk-averse investors. The company reported $67.57B in revenue and $6.92B in net income for FY 2023, supported by robust demand for defense systems amid rising global tensions. However, reliance on U.S. government contracts (~70% of revenue) introduces budgetary and political risks. Dividend investors may find the $11.00 annual dividend per share attractive, though high capital expenditures ($1.69B) and debt ($17.46B) warrant monitoring. Long-term growth hinges on next-gen defense programs (e.g., hypersonic weapons, space systems) and international expansion.
Lockheed Martin’s competitive advantage stems from its technological leadership, entrenched relationships with the U.S. Department of Defense (DoD), and scale in high-barrier-to-entry markets. The F-35 program, representing ~27% of revenue, solidifies its dominance in tactical aircraft, while its space segment (e.g., satellites, missile defense) benefits from increasing defense budgets. Competitors face challenges matching Lockheed’s integration capabilities and R&D spending ($2.5B annually). However, the company’s reliance on cost-plus contracts exposes it to margin pressures and delays. Its vertical integration (e.g., Sikorsky helicopters, missile systems) provides supply chain resilience but limits agility compared to leaner rivals. While international sales (30% of revenue) diversify risk, geopolitical restrictions (e.g., ITAR regulations) constrain growth in non-allied markets. Emerging threats include disruptive entrants in autonomous systems (e.g., drones) and SpaceX’s cost-competitive space launch solutions.