| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 321.90 | -39 |
| Intrinsic value (DCF) | 175.60 | -67 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 254.10 | -52 |
Lockheed Martin Corporation (LOM.DE) is a global leader in aerospace, defense, and security solutions, listed on the Deutsche Börse (XETRA). Headquartered in Bethesda, Maryland, 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 defense innovation. Founded in 1912, Lockheed Martin has established itself as a cornerstone of the aerospace and defense industry, leveraging cutting-edge R&D and long-term government partnerships. Its diversified portfolio ensures resilience in defense spending cycles, making it a key player in global security infrastructure.
Lockheed Martin presents a stable investment opportunity due to its dominant position in defense contracting, consistent government-backed revenue streams, and strong dividend yield (€12.52 per share). With a market cap of €96.9B and a low beta (0.29), it offers defensive exposure to geopolitical tensions and military modernization trends. However, reliance on U.S. defense budgets poses cyclical risks, and net income (€5.3B) faces pressure from R&D and procurement costs. The company’s €20.3B debt load and moderate operating cash flow (€7B) warrant monitoring, but its €2.5B cash reserves provide liquidity. Investors should weigh its steady EPS (€22.31) against potential budget cuts or contract delays.
Lockheed Martin’s competitive advantage lies in its entrenched relationships with the U.S. Department of Defense and allied governments, securing multi-year contracts for high-profile programs like the F-35 and THAAD missile systems. Its vertical integration across aerospace, missiles, and space systems creates barriers to entry, while its R&D focus (e.g., hypersonic weapons, AI-driven defense) ensures technological leadership. Competitors struggle to match its scale in classified programs and systems integration. However, the company faces pricing pressure from fixed-cost contracts and competition from agile rivals like SpaceX in space launch services. Its Rotary and Mission Systems segment competes with commercial aerospace firms, while geopolitical shifts could redistribute market share to European or Asian defense contractors. Lockheed’s ability to adapt to hybrid warfare and cybersecurity demands will be critical in maintaining dominance.