Lockheed Martin Corp. (NYSE:LMT)

The analysis of the financial ratios over the observed periods reveals several notable trends and fluctuations.

Price to Earnings (P/E) Ratio

The P/E ratio exhibits an overall increasing trend from the first data point available in March 2020, starting at 13.44 and rising to a peak of 22 by September 2022. However, this upward trajectory is followed by a decline to approximately 15.35 by September 2023, after which it gradually increases again, reaching 22.81 by June 2025. This pattern suggests periods of varying investor sentiment, likely influenced by earnings performance and market expectations.

Price to Operating Profit (P/OP) Ratio

This ratio shows similar fluctuations to the P/E ratio but with comparatively less volatility. Beginning at 10.63 in March 2020, it climbs to a high of 15.88 by June 2025. Midway through the period, the ratio experiences some declines, for instance dipping to around 10.22 at December 2020 but recovers steadily afterward. The overall increasing trend indicates that the market valuation relative to operating profits has risen over time, implying potentially improved profitability or higher investor valuation multiples.

Price to Sales (P/S) Ratio

The P/S ratio exhibits more moderate but consistent fluctuations, starting at 1.4 at the initial measurement point and peaking at 1.92 in June 2025. There is a period of decline following the peak around mid-2022, falling to 1.33 by June 2025. This suggests some variability in sales valuation relative to share price, reflecting changes in sales growth or investor perspectives on revenue quality.

Price to Book Value (P/BV) Ratio

The P/BV ratio presents a distinct downward trend from an initially very high ratio of 30.96 in March 2020, falling sharply to around 9.5 by September 2021. Following this, the ratio demonstrates volatility, rising and falling between approximately 9 and nearly 20 across subsequent quarters. Notably, there is a recovery starting in late 2021 with peaks around 19.35 by September 2024 before declining slightly again. This indicates significant changes in the company’s book value or shifts in market valuation relative to book equity, suggesting adjustments in asset valuation, equity changes, or investor perceptions of net asset worth over time.

In summary, the financial ratios analyzed exhibit dynamic behavior with periods of growth and contraction. The price-to-earnings and price-to-operating-profit ratios generally trend upward over the long term, pointing towards increasing market valuations relative to earnings and operating profits. Conversely, the price-to-sales ratio shows moderate variation without a clear directional trend, and the price-to-book value ratio reflects substantial early declines followed by variable recovery phases. These trends suggest evolving market perceptions of profitability, revenue quality, and net asset value across the periods examined.

Share Price Trend

The share price demonstrated notable fluctuations throughout the observed periods. Starting at $380.40 in March 2020, there was a general downward movement until the end of 2020, reaching a low around $327.93 in December 2020. Subsequently, a recovery phase ensued with share prices increasing significantly to a peak of $501.41 by March 2023. However, this peak was followed by some volatility, with prices oscillating in the range of approximately $439.67 to $501.29 through the end of 2024. In 2025, the share price declined more sharply, ending at $410.74 in June 2025, indicating increased market unpredictability or valuation adjustments during this later period.

Earnings per Share (EPS) Trend

EPS data, available from December 2020, reveals an initial strong performance with values around $24.39 to $25.79 through the first half of 2021. Following this, EPS showed variability but remained generally stable around the low to mid-20s, with a significant dip to $17.74 in September 2022, suggesting a period of reduced profitability. After this trough, earnings steadily improved, peaking at $28.64 in September 2023. EPS then plateaued in the high 20s for most of the remainder of 2023 and early 2024, before experiencing a decline beginning in 2025 with values dropping to $18.01 by June 2025, which may reflect operational challenges or market conditions impacting profitability.

Price-to-Earnings (P/E) Ratio Analysis

The P/E ratio started at 13.44 in December 2020, indicating relatively low price multiples compared to earnings at that time. There was a rising trend through mid-2022, peaking at 22.00, highlighting increased market valuation relative to earnings, possibly reflecting investor optimism or expectations of future growth. Following this peak, the ratio fluctuated around 15.35 to 17.74 through late 2023 and early 2024, suggesting more moderate valuation levels despite relatively high EPS. In 2025, the P/E ratio again increased somewhat, reaching as high as 22.81 in June 2025 despite a falling EPS, indicating possible market overvaluation or speculative activity during that period.

Overall Financial Insights

The share price and EPS generally exhibited positive correlation patterns with occasional divergences, particularly in periods of increased market volatility or shifting investor sentiment. The initial decline in share price during 2020 aligns with incomplete or unreported EPS data but shows recovery aligning with the stabilization and growth in earnings. The fluctuations in P/E ratios suggest multiple market cycles of optimism and correction. The late-stage decline in EPS paired with increased P/E ratios in 2025 may warrant further investigation into underlying operational issues or broader economic influences affecting the company’s valuation and earnings quality.

The share price exhibits considerable fluctuations over the period analyzed. Initially, there is a decline from $380.4 in March 2020 to a low point around $327.93 in December 2020. Subsequently, the share price recovers and shows a general upward trend, reaching peaks above $570 by late 2024. However, towards the end of the period, a notable decrease is observed with the price falling to approximately $410.74 by mid-2025.

Operating profit per share data is unavailable for the earliest quarters but begins from March 2021. From this point, the operating profit per share steadily increases from around $30.86 to a high of $36.32 in late 2024, indicating gradual improvement in profitability. Yet, this trend reverses slightly in 2025, with a decline to $25.51 by mid-year, suggesting challenges impacting operating profitability.

The Price to Operating Profit ratio (P/OP) starts at about 10.63 in March 2021, rising progressively to peak around 16.10 towards the end of 2024. This increase suggests that the market valuation of the company's earnings has generally increased relative to operating profit. A decreasing operating profit combined with relatively high share prices towards mid-2025 results in elevated P/OP ratios around 14.72 to 16.10, indicating potentially less favorable valuation from an earnings perspective.

Share Price Trend

Initial decline through 2020, followed by a recovery and significant growth peaking near late 2024, then a decline towards mid-2025.

Operating Profit per Share

Absent early data; from first availability in early 2021, a steady increase until late 2024 with a decline in 2025.

Price to Operating Profit Ratio (P/OP)

Ratio shows an increasing trend from 2021 through late 2024, reflecting rising market valuations relative to earnings, with a slight dip then rise into mid-2025 associated with profit decline and share price changes.

Share Price Trend

The share price exhibited significant fluctuations over the observed periods. Initially, the price declined from $380.4 to $327.93 between March 2020 and December 2020. It then recovered and experienced general growth, peaking at $501.41 by March 2023. Following this peak, the share price showed some volatility but remained relatively elevated with values around the mid-400s to low 500s until early 2024. Notably, there was another surge reaching $576.98 by September 2024, followed by a decline to approximately $410.74 by June 2025.

Sales Per Share

Sales per share data, available from March 2021 onward, demonstrated a consistent upward trend. Starting at $233.48, the figure steadily increased each period, reaching $307.73 by June 2025. This progression reflects sustained growth in sales on a per-share basis, indicating potentially improving revenue performance relative to the share count.

Price-to-Sales (P/S) Ratio

The P/S ratio showed variability throughout the periods measured. Beginning at 1.4 in March 2021, the ratio peaked at 1.92 on multiple occasions (March 2023, September 2024), indicating periods when the market valued the company’s sales more highly. Conversely, the ratio declined to as low as 1.33 by June 2025. The fluctuations in the P/S ratio suggest changing market sentiment or expectations regarding the company’s sales growth or profitability over time.

Overall Insights

The data reflects an upward trajectory in sales per share, which is a positive indicator of operational growth. The share price shows periods of volatility but generally trended upward until late 2024 before decreasing. The P/S ratio's volatility alongside share price changes implies varying market perceptions of value relative to sales. The peak values in the share price and P/S ratio around March 2023 and September 2024 coincide with higher investor confidence or market optimism regarding sales performance. Later declines in share price and P/S could point to adjustments in investor expectations or broader market influences.

The financial analysis over the presented quarters reveals several notable trends and shifts in valuation metrics.

Share Price

The share price exhibits volatility across the timeline, beginning at $380.40 and experiencing fluctuations with notable peaks and troughs. Initial volatility is observed from March 2020 through December 2021, with prices ranging mostly between the mid-$300s to near $460. A significant upward trajectory occurs starting in early 2022, reaching a peak of approximately $576.98 by September 2024. However, this is followed by a decline to $410.74 by June 2025. This pattern indicates periods of strong investor confidence interrupted by phases of market correction or reevaluation.

Book Value Per Share (BVPS)

The BVPS shows an overall upward trend from $12.29 at the beginning of the timeline to a peak of $45.66 around September 2022, indicating growth in the company’s net asset base per share. After this peak, there is a downward adjustment through to June 2025, where the BVPS declines to $22.85. This decline suggests either asset reductions, increased liabilities, share dilution, or a combination thereof after a period of substantial growth.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio decreases sharply from an extremely high valuation of approximately 31 times at the start, down to lower levels near 9 to 10 times by late 2020 and early 2021, indicating a transition from potentially overvalued to a more moderate valuation relative to book value. Subsequently, the ratio fluctuates, remaining mostly in a range between 9 and 19, with periods of increase especially notable after mid-2023. The rise in P/BV despite declining book values toward the end of the period suggests that the market price retains relative strength, possibly reflecting continued investor optimism or expectations beyond current book values.

Overall, the trends demonstrate significant growth in the company’s book value until late 2022, accompanied by substantial appreciation in share price, followed by corrections in both metrics. The variances in P/BV ratios indicate shifts in market perception of the company’s intrinsic value, with phases of market exuberance and subsequent normalization. The data reflects dynamic interplay between the company's fundamental asset base and market valuation over the observed quarters.