NYSE:GD is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jan 8, 2025

Our stock screener has singled out GENERAL DYNAMICS CORP (NYSE:GD) as a stellar value proposition. NYSE:GD not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Valuation Analysis for NYSE:GD

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:GD has received a 7 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of GD indicates a rather cheap valuation: GD is cheaper than 82.81% of the companies listed in the same industry.
GD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
Based on the Price/Forward Earnings ratio, GD is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
GD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.54, which is the current average of the S&P500 Index.
81.25% of the companies in the same industry are more expensive than GD, based on the Enterprise Value to EBITDA ratio.
81.25% of the companies in the same industry are more expensive than GD, based on the Price/Free Cash Flow ratio.
GD has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GD's earnings are expected to grow with 14.60% in the coming years.

A Closer Look at Profitability for NYSE:GD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:GD has achieved a 6:

Looking at the Return On Assets, with a value of 6.35%, GD is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
With an excellent Return On Equity value of 15.84%, GD belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.32%, GD belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The last Return On Invested Capital (10.32%) for GD is above the 3 year average (9.53%), which is a sign of increasing profitability.
The Profit Margin of GD (7.90%) is better than 71.88% of its industry peers.
GD has a better Operating Margin (10.12%) than 67.19% of its industry peers.

Looking at the Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:GD has received a 5 out of 10:

An Altman-Z score of 3.44 indicates that GD is not in any danger for bankruptcy at the moment.
With a decent Debt to FCF ratio value of 4.06, GD is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that GD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, GD is in the better half of the industry, outperforming 68.75% of the companies in the same industry.

Exploring NYSE:GD's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:GD scores a 5 out of 10:

GD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.78%, which is quite good.
The Revenue has grown by 11.07% in the past year. This is quite good.
Based on estimates for the next years, GD will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.04% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of GD

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.