Skip to main content

LMT STOCK WRITE UP

LMT (LOCKHEED MARTIN)

  • P/E: 21.7
  • GAAP DILUTED EPS Y-O-Y GROWTH LAST QUARTER: $.31
  • SECTOR: ELECTRONIC TECHNOLOGY
  • ASSETS-LIABILITIES: 1.03
  • DIVIDEND: 1.82

LMT is a defense company branded as a technology stock. Although Aerospace and Defense is a field in which a large amount of money is invested for the wellbeing of the country, the largest brands are not always as visible to the common consumer as a storefront one sees on the street, or a company that advertises constantly on our computers, televisions, and radios. However, while our tax dollars are going to Aerospace and Defense, I see no reason why we, the common consumers, should not profit off of the best companies in the sector. As the largest company in the sector, LMT gives the best probability of profit.
The bulk of Lockheed Martin's profit is derived from its aeronautics segment, according to its financial data available on the company's investor relations site. Lockheed Martin is substantially reducing their cost in production per unit, and the sales volume is increasing for their aircraft, driving substantial gains in their aircraft department. Sikorsky was acquired by Lockheed's Rotary and Mission Systems segment, providing a 48% net sales increase for the full year of 2016, a profit that was partially offset by the divestiture of a less profitable department within the same segment. Therefore, the company is looking forward to increased gains from their acquisition of Sikorsky in 2017, and freedom from the burden of the department which the company disposed of in 2016.
According to the financial release, the company has an assets-liabilities ratio of 1.03. This is not as impressive of a number as many companies, however, Lockheed Martin is forced to commit a large amount of their cash to R&D in order to stay competitive in the field of defense and remain the largest contractor for the US government. Additionally, Lockheed provides a substantial dividend of $1.82. They posted a large year-over-year growth in EPS at $.31, and I expect their strategic re positioning enacted in 2016 to afford them further growth in 2017. They have a backlog of orders at $96.2 billion as of the end of 2016, ensuring they will have substantial net income in 2017 should they be able to fill the orders which have already been received. The company also has a reasonable price-to-earnings multiple of 21.7. Therefore, if the 2016 growth of 11% is bested in 2017 as company history has demonstrated is likely, the stock will grow accordingly.


SOURCES:

https://www.fpds.gov/fpdsng_cms/index.php/en/reports/62-top-100-contractors-report3.html

http://phx.corporate-ir.net/phoenix.zhtml?c=83941&p=irol-reportsOther


http://phx.corporate-ir.net/phoenix.zhtml?c=83941&p=irol-dividends
Labels:

Comments

Post a Comment

Popular posts from this blog

CTAS STOCK WRITE UP

CTAS (CINTAS CORPORATION) P/E: 26.8 GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $.02 SECTOR: CONSUMER SERVICES ASSETS-LIABILITIES: 2.09 DIVIDEND: 1.06% CTAS is a company providing uniforms to major companies. They report 7/20/17 after the market close. The company is profitable, and has acquired smaller businesses to grow its revenue, while selling a paper-shredding company it had previously acquired. The company has more cash than debt. Inventories increased by 9%, and revenue increased by 5.3%. Income before taxes grew 2.5%, and $642,000 in losses from discontinued operations and a $9 million acquisition expense reduced the profit improvement to just under 2%. The majority of revenue is derived from uniform rental services. According to wikinvest, CTAS has 30% of market share for uniform rentals due to its commitment to providing specialized products to fit customer needs. Cintas was founded as The Acme Industrial Laundry Company in 19
5 comments
Read more

ISRG STOCK WRITE UP

ISRG (INTUITIVE SURGICAL INC) P/E: 48 GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $1.13 SECTOR: HEALTH TECHNOLOGY ASSETS-LIABILITIES: 7.05 DIVIDEND: none ISRG is the ticker for Intuitive Surgical Inc, a company endeavoring in the manufacture and distribution of robotic surgical devices. The company recently gained FDA approval for a lower-cost device. They have a clean balance sheet with a history of upside surprises against earnings expectations, and report again 7/20/17. Revenues increased nearly 14%, while EPS increased 32% compared to the Q1 '16 results. While liabilities decreased on a year-over-year basis, assets decreased by a larger margin. R&D spending increased 36%, and administrative costs rose 16%. Taxes were cut in half, although the revenues increased, due to modified accounting principles, and tax benefits for the employee share-based compensation.. The ratio of assets-liabilities decreased from 9.14 to 7.05, which is
1 comment
Read more

PXD STOCK WRITE UP

 PXD (PIONEER NATURAL RESOURCES) P/E: N/A GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.67 SECTOR: ENERGY MINERALS ASSETS-LIABILITIES: 1.58 DIVIDEND: .04% Pioneer Natural Resources has recently made the jaw-dropping switch from negative EPS to positive with its last quarter. Situated in the largest oil-producing region in the US, the company is utilizing its good fortune to produce profits. The company has a good balance sheet, a wealth of resources, and a business model which has afforded it growth. This last quarter does not mark the first occasion on which Pioneer has posted a profit. In 2014, and 2012, Pioneer posted a positive EPS for the full year. While the 2016 oil and gas revenues have grown from 2015, the 2014 and 2012 levels were higher. The company's revenue from oil and gas is largely based on market prices. In order to mitigate the market volatility, Pioneer has made efforts to reduce their cost of production, according to their earnin
1 comment
Read more