Sector

Industrials

Aerospace, machinery, defence and transport. Tied to the economic cycle and large long-term contracts.

Typical revenue growth

3.7%

a year, last decade

Typical operating margin

10.3%

Typical return on capital

20.5%

5-year average

Priced vs usual

–

0 cheaper · 0 dearer than usual

Standouts

Highest return on capital

Lockheed Martin (LMT)

31.2%

Fastest growing

Lockheed Martin (LMT)

6.4% a year

All industrials companies

biggest first

Company	Size	Quality	Health	Return on capital	Growth	vs usual price
CAT Caterpillar	–	4/7	6	19.0%	3.7%	–
DE Deere	–	3/6	5	20.0%	4.7%	–
GE GE Aerospace	–	1/3	5	–	-9.0%	–
HON Honeywell	–	5/7	5	21.0%	-0.3%	–
UPS UPS	–	5/7	5	26.2%	4.3%	–
LMT Lockheed Martin	–	7/7	6	31.2%	6.4%	–
BA Boeing	–	1/7	6	-10.9%	-0.7%	–

Quality = long-term checks passed (growth, cash generation, returns, margins, dilution, debt). Health = Piotroski F-score. Standouts are facts, not recommendations.