Lockheed MartinLIM:LMT 73 ROE % is 83.77% as of Mar. 2026, which is 29% below its 10-year median of 117.73. GuruFocus rates LIM:LMT with a GF Score™ of 73/100 and a GF Value™ of $587.42 (Fairly Valued). The stock has 3 warning signs investors should review. Among 347 Aerospace & Defense companies, Lockheed Martin ranks better than 96.54% on this metric.
The historical rank and industry rank for Lockheed Martin's ROE % or its related term are showing as below:
LIM:LMT'
s ROE % Range Over the Past 10 Years
Min: 56.68 Med: 117.73 Max: 1855.15
Current: 73.95
During the past 13 years, Lockheed Martin's highest ROE % was 1,855.15%. The lowest was 56.68%. And the median was 117.73%.
LIM:LMT's ROE % is ranked better than 96.54% of 347
companies
in the Aerospace & Defense industry
Industry Median: 5.91
vs LIM:LMT: 73.95
Lockheed Martin (LIM:LMT) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Lockheed Martin ROE % Related Terms
Lockheed Martin ROE % Historical Data
* Premium members only.
The historical data trend for Lockheed Martin's ROE % 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.
For the Aerospace & Defense subindustry, Lockheed Martin's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Lockheed Martin's ROE % distribution charts can be found below:
* The bar in red indicates where Lockheed Martin's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Lockheed Martin (LIM:LMT) has a ROE % of 83.77% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lockheed Martin and its competitors. This is 29% below median its historical median of 117.73. Over the past decade, Lockheed Martin's ROE % has ranged from 56.68 to 1,855.15. According to the industry distribution chart, Lockheed Martin ranks #12 out of 347 companies in the Aerospace & Defense industry, placing it in the top 3.5%.
Is Lockheed Martin's ROE % too high?
Lockheed Martin's current ROE % of 83.77% is 29% below median its 10-year median of 117.73. Over the past 10 years, this metric has ranged from a low of 56.68 to a high of 1,855.15. The Aerospace & Defense industry median ROE % is 5.91. Lockheed Martin's value of 83.77% is 1317.4% above this industry median. Based on the distribution chart, Lockheed Martin ranks #12 out of 347 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 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lockheed Martin's ROE % compare to HWM and GD?
According to the Aerospace & Defense industry distribution chart, Lockheed Martin ranks #12 out of 347 companies for ROE %. This places Lockheed Martin in the top 4% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Lockheed Martin's value of 83.77% is 1317.4% above this benchmark. Historically, Lockheed Martin's own ROE % has ranged from 56.68 to 1,855.15 over the past decade. While the company's 10-year median is 117.73 vs. the industry median of 5.91, Lockheed Martin has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.91, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lockheed Martin's current ROE % of 83.77% is 1317.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lockheed Martin and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lockheed Martin's current ROE % is 83.77%, which is 29% below median its own 10-year median of 117.73. 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?
Based on GuruFocus' analysis, Lockheed Martin (LIM:LMT) is currently considered Fairly Valued. The stock's GF Value™ is $587.42, compared to a current price of $541.22 — trading 7.9% below its estimated fair value. The current ROE % is 83.77%, which is 29% below median its 10-year median of 117.73 and 1317.4% above the Aerospace & Defense industry median of 5.91. Lockheed Martin's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Lockheed Martin (LIM:LMT), the current ROE % is 83.77% 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 (LIM:LMT) Overvalued in 2026?
Based on GuruFocus' analysis, Lockheed Martin stock appears to be undervalued.
The current stock price of $541.22 is trading 7.9% below its estimated GF Value™ of $587.42.
GuruFocus considers Lockheed Martin to be Fairly Valued.
Key valuation signals for LIM:LMT:
ROE %: 83.77% (29% below median its 10-year median of 117.73)
GF Value™: $587.42 vs. price of $541.22 (7.9% below fair value)
Industry Position: 1317.4% above the Aerospace & Defense median (#12 of 347)
No single metric tells the full story. See the LIM: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.
73GF Score
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