Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lockheed Martin's annualized net income for the quarter that ended in Mar. 2026 was CHF4,686 Mil. Lockheed Martin's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF-5,771 Mil. Therefore, Lockheed Martin's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Lockheed Martin's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:LMT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
XSWX:LMT's Return-on-Tangible-Equity is ranked better than 99.7% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs XSWX:LMT: Negative Tangible Equity
Lockheed Martin (XSWX:LMT) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lockheed Martin Return-on-Tangible-Equity Related Terms
Lockheed Martin Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lockheed Martin's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:LMT vs HWM, GD, TDG: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Lockheed Martin's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lockheed Martin Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Lockheed Martin's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lockheed Martin's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Lockheed Martin (XSWX:LMT) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lockheed Martin and its competitors. According to the industry distribution chart, Lockheed Martin ranks #1 out of 334 companies in the Aerospace & Defense industry, placing it in the top 0.3%.
Is Lockheed Martin's Return-on-Tangible-Equity too high?
Lockheed Martin's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Lockheed Martin ranks #1 out of 334 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Lockheed Martin has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Lockheed Martin's Return-on-Tangible-Equity compare to HWM and GD?
According to the Aerospace & Defense industry distribution chart, Lockheed Martin ranks #1 out of 334 companies for Return-on-Tangible-Equity. This places Lockheed Martin in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lockheed Martin and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lockheed Martin's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lockheed Martin stock overvalued right now?
Lockheed Martin (XSWX:LMT) has a current Return-on-Tangible-Equity of Negative Tangible Equity%. The stock's GF Value™ is CHF418.80, compared to a current price of CHF431.50 — trading 3% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Lockheed Martin's overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lockheed Martin (XSWX:LMT), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lockheed Martin (XSWX:LMT) Overvalued in 2026?
Based on GuruFocus' analysis, Lockheed Martin stock appears to be overvalued.
The current stock price of CHF431.50 is trading 3% above its estimated GF Value™ of CHF418.80.
No single metric tells the full story. See the XSWX:LMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lockheed Martin is the world's largest defense contractor and has dominated the Western market for high-end fighter aircraft since it won the F-35 Joint Strike Fighter program in 2001. Aeronautics is Lockheed's largest segment, which derives upward of two-thirds of its revenue from the F-35. Lockheed's remaining segments are rotary and mission systems, mainly encompassing the Sikorsky helicopter business; missiles and fire control, which creates missiles and missile defense systems; and space systems, which produces satellites and receives equity income from the United Launch Alliance joint venture.
77GF Score
Get the complete analysis for XSWX:LMT
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:LMT has been successfully added to your 
