GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
NYSE:GD - New York Stock Exchange, Inc. - US3695501086 - Common Stock
GD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. GD has an average financial health and profitability rating. GD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GD had positive earnings in the past year.
GD had a positive operating cash flow in the past year.
GD had positive earnings in each of the past 5 years.
In the past 5 years GD always reported a positive cash flow from operatings.
1.2 Ratios
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.
GD has a Return On Invested Capital of 10.32%. This is amongst the best in the industry. GD outperforms 89.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GD is in line with the industry average of 7.66%.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 15.84% | ||
| ROIC | 10.32% |
ROA(3y)6.37%
ROA(5y)6.47%
ROE(3y)17.43%
ROE(5y)19.49%
ROIC(3y)9.53%
ROIC(5y)10.06%
1.3 Margins
The Profit Margin of GD (7.90%) is better than 71.88% of its industry peers.
In the last couple of years the Profit Margin of GD has declined.
GD has a better Operating Margin (10.12%) than 67.19% of its industry peers.
In the last couple of years the Operating Margin of GD has declined.
GD has a Gross Margin of 15.64%. This is in the lower half of the industry: GD underperforms 73.44% of its industry peers.
GD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.12% | ||
| PM (TTM) | 7.9% | ||
| GM | 15.64% |
OM growth 3Y-2.69%
OM growth 5Y-4%
PM growth 3Y-2.07%
PM growth 5Y-3.23%
GM growth 3Y-1.82%
GM growth 5Y-3.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GD is creating some value.
The number of shares outstanding for GD remains at a similar level compared to 1 year ago.
The number of shares outstanding for GD has been reduced compared to 5 years ago.
Compared to 1 year ago, GD has an improved debt to assets ratio.
2.2 Solvency
GD has an Altman-Z score of 3.50. This indicates that GD is financially healthy and has little risk of bankruptcy at the moment.
GD's Altman-Z score of 3.50 is in line compared to the rest of the industry. GD outperforms 53.13% of its industry peers.
The Debt to FCF ratio of GD is 4.06, which is a neutral value as it means it would take GD, 4.06 years of fcf income to pay off all of its debts.
GD has a Debt to FCF ratio of 4.06. This is in the better half of the industry: GD outperforms 76.56% of its industry peers.
GD has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, GD is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.04
WACC9.91%
2.3 Liquidity
A Current Ratio of 1.32 indicates that GD should not have too much problems paying its short term obligations.
GD has a Current ratio of 1.32. This is in the lower half of the industry: GD underperforms 68.75% of its industry peers.
A Quick Ratio of 0.80 indicates that GD may have some problems paying its short term obligations.
With a Quick ratio value of 0.80, GD is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.78% over the past year.
Measured over the past 5 years, GD shows a small growth in Earnings Per Share. The EPS has been growing by 1.01% on average per year.
The Revenue has grown by 11.07% in the past year. This is quite good.
GD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.15% yearly.
EPS 1Y (TTM)9.78%
EPS 3Y3%
EPS 5Y1.01%
EPS Q2Q%10.2%
Revenue 1Y (TTM)11.07%
Revenue growth 3Y3.68%
Revenue growth 5Y3.15%
Sales Q2Q%10.41%
3.2 Future
Based on estimates for the next years, GD will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.55% on average per year.
The Revenue is expected to grow by 5.84% on average over the next years.
EPS Next Y18.53%
EPS Next 2Y17.16%
EPS Next 3Y14.6%
EPS Next 5Y11.55%
Revenue Next Year13.11%
Revenue Next 2Y9.46%
Revenue Next 3Y7.42%
Revenue Next 5Y5.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.69, GD is valued on the expensive side.
GD's Price/Earnings ratio is rather cheap when compared to the industry. GD is cheaper than 85.94% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. GD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.46, GD is valued correctly.
87.50% of the companies in the same industry are more expensive than GD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.44. GD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.69 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
79.69% of the companies in the same industry are more expensive than GD, based on the Enterprise Value to EBITDA ratio.
GD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GD is cheaper than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.76 | ||
| EV/EBITDA | 14.8 |
4.3 Compensation for Growth
GD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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.
PEG (NY)1.12
PEG (5Y)20.45
EPS Next 2Y17.16%
EPS Next 3Y14.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.11%, GD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.36, GD pays a better dividend. On top of this GD pays more dividend than 92.19% of the companies listed in the same industry.
GD's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
The dividend of GD is nicely growing with an annual growth rate of 7.29%!
GD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GD decreased in the last 3 years.
Dividend Growth(5Y)7.29%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
GD pays out 41.22% of its income as dividend. This is a bit on the high side, but may be sustainable.
GD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.22%
EPS Next 2Y17.16%
EPS Next 3Y14.6%
GENERAL DYNAMICS CORP
NYSE:GD (1/21/2025, 8:04:00 PM)
After market: 274 +2.37 (+0.87%)271.63
+4.96 (+1.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners86.43%
Inst Owner Change-0.54%
Ins Owners0.25%
Ins Owner Change0.13%
Market Cap74.69B
Analysts78.24
Price Target324.36 (19.41%)
Short Float %1.5%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend5.22
Dividend Growth(5Y)7.29%
DP41.22%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.75%
Min EPS beat(2)-6.39%
Max EPS beat(2)-3.12%
EPS beat(4)0
Avg EPS beat(4)-4.52%
Min EPS beat(4)-6.39%
Max EPS beat(4)-3.12%
EPS beat(8)2
Avg EPS beat(8)-2.2%
EPS beat(12)4
Avg EPS beat(12)-1.71%
EPS beat(16)6
Avg EPS beat(16)-1.29%
Revenue beat(2)1
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-2.66%
Max Revenue beat(2)1.65%
Revenue beat(4)2
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)1.65%
Revenue beat(8)5
Avg Revenue beat(8)0.92%
Revenue beat(12)6
Avg Revenue beat(12)-0.45%
Revenue beat(16)7
Avg Revenue beat(16)-1.11%
PT rev (1m)-3.78%
PT rev (3m)-1.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.07%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.69 | ||
| Fwd PE | 16.46 | ||
| P/S | 1.62 | ||
| P/FCF | 32.76 | ||
| P/OCF | 23.75 | ||
| P/B | 3.25 | ||
| P/tB | 117.99 | ||
| EV/EBITDA | 14.8 |
EPS(TTM)13.13
EY4.83%
EPS(NY)16.5
Fwd EY6.07%
FCF(TTM)8.29
FCFY3.05%
OCF(TTM)11.44
OCFY4.21%
SpS167.46
BVpS83.55
TBVpS2.3
PEG (NY)1.12
PEG (5Y)20.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 15.84% | ||
| ROCE | 12.35% | ||
| ROIC | 10.32% | ||
| ROICexc | 10.93% | ||
| ROICexgc | 29.27% | ||
| OM | 10.12% | ||
| PM (TTM) | 7.9% | ||
| GM | 15.64% | ||
| FCFM | 4.95% |
ROA(3y)6.37%
ROA(5y)6.47%
ROE(3y)17.43%
ROE(5y)19.49%
ROIC(3y)9.53%
ROIC(5y)10.06%
ROICexc(3y)9.96%
ROICexc(5y)10.56%
ROICexgc(3y)26.8%
ROICexgc(5y)30.81%
ROCE(3y)11.4%
ROCE(5y)12.04%
ROICexcg growth 3Y-9.25%
ROICexcg growth 5Y-12.8%
ROICexc growth 3Y-2.88%
ROICexc growth 5Y-4.95%
OM growth 3Y-2.69%
OM growth 5Y-4%
PM growth 3Y-2.07%
PM growth 5Y-3.23%
GM growth 3Y-1.82%
GM growth 5Y-3.18%
F-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.06 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 99.65% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 47.56 | ||
| Cash Conversion | 56.88% | ||
| Profit Quality | 62.65% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 3.5 |
F-Score6
WACC9.91%
ROIC/WACC1.04
Cap/Depr(3y)110.14%
Cap/Depr(5y)111.93%
Cap/Sales(3y)2.42%
Cap/Sales(5y)2.47%
Profit Quality(3y)106.93%
Profit Quality(5y)93.19%
High Growth Momentum
Growth
EPS 1Y (TTM)9.78%
EPS 3Y3%
EPS 5Y1.01%
EPS Q2Q%10.2%
EPS Next Y18.53%
EPS Next 2Y17.16%
EPS Next 3Y14.6%
EPS Next 5Y11.55%
Revenue 1Y (TTM)11.07%
Revenue growth 3Y3.68%
Revenue growth 5Y3.15%
Sales Q2Q%10.41%
Revenue Next Year13.11%
Revenue Next 2Y9.46%
Revenue Next 3Y7.42%
Revenue Next 5Y5.84%
EBIT growth 1Y11.4%
EBIT growth 3Y0.9%
EBIT growth 5Y-0.97%
EBIT Next Year35.54%
EBIT Next 3Y16.96%
EBIT Next 5Y12.26%
FCF growth 1Y-50.48%
FCF growth 3Y10.32%
FCF growth 5Y9.29%
OCF growth 1Y-43.93%
OCF growth 3Y7.4%
OCF growth 5Y8.51%