Lockheed Martin Return On Asset vs. Current Valuation
| LOM Stock | EUR 471.00 2.60 0.55% |
For Lockheed Martin profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lockheed Martin to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lockheed Martin utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lockheed Martin's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lockheed Martin over time as well as its relative position and ranking within its peers.
Lockheed |
Lockheed Martin Current Valuation vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lockheed Martin's current stock value. Our valuation model uses many indicators to compare Lockheed Martin value to that of its competitors to determine the firm's financial worth. Lockheed Martin is currently regarded as number one stock in return on asset category among its peers. It also is considered the number one company in current valuation category among its peers reporting about 1,435,860,457,944 of Current Valuation per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lockheed Martin's earnings, one of the primary drivers of an investment's value.Lockheed Current Valuation vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Lockheed Martin |
| = | 0.09 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Lockheed Martin |
| = | 129.23 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Lockheed Current Valuation vs Competition
Lockheed Martin is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Aerospace & Defense industry is now estimated at about 172.58 Billion. Lockheed Martin totals roughly 129.23 Billion in current valuation claiming about 75% of stocks in Aerospace & Defense industry.
Lockheed Martin Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lockheed Martin, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lockheed Martin will eventually generate negative long term returns. The profitability progress is the general direction of Lockheed Martin's change in net profit over the period of time. It can combine multiple indicators of Lockheed Martin, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. Lockheed Martin Corporation was founded in 1912 and is headquartered in Bethesda, Maryland. LOCKHEED MARTIN operates under Aerospace Defense classification in Germany and is traded on Frankfurt Stock Exchange. It employs 114000 people.
Lockheed Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lockheed Martin. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lockheed Martin position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lockheed Martin's important profitability drivers and their relationship over time.
Use Lockheed Martin in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lockheed Martin position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lockheed Martin will appreciate offsetting losses from the drop in the long position's value.Lockheed Martin Pair Trading
Lockheed Martin Pair Trading Analysis
The ability to find closely correlated positions to Lockheed Martin could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lockheed Martin when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lockheed Martin - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lockheed Martin to buy it.
The correlation of Lockheed Martin is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lockheed Martin moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lockheed Martin moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lockheed Martin can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Lockheed Martin position
In addition to having Lockheed Martin in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Israel Wall Street Thematic Idea Now
Israel Wall Street
Cross-sector collection of best publicly traded Israel entities that are expected to continue growing. The Israel Wall Street theme has 71 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Israel Wall Street Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in Lockheed Stock
When determining whether Lockheed Martin is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Lockheed Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Lockheed Martin Stock. Highlighted below are key reports to facilitate an investment decision about Lockheed Martin Stock:Check out Correlation Analysis. For more detail on how to invest in Lockheed Stock please use our How to Invest in Lockheed Martin guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project Lockheed Martin's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lockheed Martin at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lockheed Martin's income statement, its balance sheet, and the statement of cash flows.