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Lockheed Martin Corp. (NYSE:LMT)


Price to FCFE (P/FCFE)

Intermediate level


Free Cash Flow to Equity (FCFE)

Lockheed Martin Corp., FCFE calculation

US$ in millions

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12 months ended Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings 6,230  5,046  2,002  5,302  3,605 
Net noncash charges 1,823  1,990  4,799  (245) 1,322 
Changes in assets and liabilities (742) (3,898) (325) 132  174 
Net cash provided by operating activities 7,311  3,138  6,476  5,189  5,101 
Capital expenditures (1,484) (1,278) (1,177) (1,063) (939)
Proceeds from issuance of commercial paper, net (600) 600  —  —  — 
Repayments of long-term debt (900) (750) —  (952) — 
Proceeds from the issuance of long-term debt —  —  —  —  9,101 
Proceeds from borrowings under revolving credit facilities —  —  —  —  6,000 
Repayments of borrowings under revolving credit facilities —  —  —  —  (6,000)
Free cash flow to equity (FCFE) 4,327  1,710  5,299  3,174  13,263 

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Lockheed Martin Corp.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Lockheed Martin Corp.’s FCFE decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to FCFE Ratio, Current

Lockheed Martin Corp., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 281,937,366
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 4,327 
FCFE per share 15.35
Current share price (P) 361.41
Valuation Ratio
P/FCFE 23.55
Benchmarks
P/FCFE, Competitors1
Boeing Co. 9.04
General Dynamics Corp. 34.78
Northrop Grumman Corp. 23.99
Raytheon Technologies Corp. 11.26
P/FCFE, Sector
Aerospace & Defense 15.36
P/FCFE, Industry
Industrials 14.63

Based on: 10-K (filing date: 2020-02-07).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Lockheed Martin Corp., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 281,937,366 282,562,534 285,570,742 290,315,668 305,487,347
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 4,327  1,710  5,299  3,174  13,263 
FCFE per share3 15.35 6.05 18.56 10.93 43.42
Share price1, 4 439.17 301.50 341.42 258.20 216.63
Valuation Ratio
P/FCFE5 28.62 49.82 18.40 23.62 4.99
Benchmarks
P/FCFE, Competitors6
Boeing Co. 19.60 15.23 15.94 12.75 9.86
General Dynamics Corp. 47.15 4.64 17.60 24.11 28.78
Northrop Grumman Corp. 28.00 259.84 5.94 16.31 14.90
Raytheon Technologies Corp. 28.09 6.94 14.93 10.56 12.16
P/FCFE, Sector
Aerospace & Defense 25.62 12.06 13.66 14.86 9.45
P/FCFE, Industry
Industrials 19.38 21.05 21.05 63.67 30.43

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 4,327,000,000 ÷ 281,937,366 = 15.35

4 Closing price as at the filing date of Lockheed Martin Corp.’s Annual Report.

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 439.17 ÷ 15.35 = 28.62

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Lockheed Martin Corp.’s P/FCFE ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.