GENERAL DYNAMICS CORP (GD)
US3695501086 - Common Stock
We assign a fundamental rating of 6 out of 10 to GD. GD was compared to 65 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of GD get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year GD had a positive cash flow from operations.
GD had positive earnings in each of the past 5 years.
GD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GD has a better Return On Assets (6.35%) than 76.92% of its industry peers.
Looking at the Return On Equity, with a value of 15.84%, GD belongs to the top of the industry, outperforming 83.08% 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 87.69% of the companies in the same industry.
GD had an Average Return On Invested Capital over the past 3 years of 9.53%. This is in line with the industry average of 7.69%.
The 3 year average ROIC (9.53%) for GD is below the current ROIC(10.32%), indicating increased profibility in the last year.
| 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
GD has a Profit Margin of 7.90%. This is in the better half of the industry: GD outperforms 72.31% of its industry peers.
In the last couple of years the Profit Margin of GD has declined.
GD has a Operating Margin of 10.12%. This is in the better half of the industry: GD outperforms 70.77% of its industry peers.
GD's Operating Margin has declined in the last couple of years.
The Gross Margin of GD (15.64%) is worse than 70.77% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GD is still creating some value.
Compared to 1 year ago, GD has about the same amount of shares outstanding.
Compared to 5 years ago, GD has less shares outstanding
The debt/assets ratio for GD has been reduced compared to a year ago.
2.2 Solvency
GD has an Altman-Z score of 3.45. This indicates that GD is financially healthy and has little risk of bankruptcy at the moment.
GD has a Altman-Z score (3.45) which is in line with 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 better Debt to FCF ratio (4.06) than 73.85% 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.
GD's Debt to Equity ratio of 0.32 is fine compared to the rest of the industry. GD outperforms 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.1
WACC9.39%
2.3 Liquidity
A Current Ratio of 1.32 indicates that GD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.32, GD is doing worse than 69.23% of the companies in the same industry.
GD has a Quick Ratio of 1.32. This is a bad value and indicates that GD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.80, GD is doing worse than 70.77% of the companies in the same industry.
| 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.
GD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.01% yearly.
Looking at the last year, GD shows a quite strong growth in Revenue. The Revenue has grown by 11.07% in the last year.
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 12.04% on average per year.
GD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.97% yearly.
EPS Next Y19.27%
EPS Next 2Y17.39%
EPS Next 3Y14.81%
EPS Next 5Y12.04%
Revenue Next Year13.81%
Revenue Next 2Y9.66%
Revenue Next 3Y7.54%
Revenue Next 5Y5.97%
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
A Price/Earnings ratio of 20.08 indicates a rather expensive valuation of GD.
Compared to the rest of the industry, the Price/Earnings ratio of GD indicates a somewhat cheap valuation: GD is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. GD is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.92, the valuation of GD can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GD indicates a rather cheap valuation: GD is cheaper than 86.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, GD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 15.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GD is valued a bit cheaper than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GD is valued a bit cheaper than 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.8 | ||
| EV/EBITDA | 14.24 |
4.3 Compensation for Growth
GD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GD may justify a higher PE ratio.
A more expensive valuation may be justified as GD's earnings are expected to grow with 14.81% in the coming years.
PEG (NY)1.04
PEG (5Y)19.85
EPS Next 2Y17.39%
EPS Next 3Y14.81%
5. Dividend
5.1 Amount
GD has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.39, GD pays a better dividend. On top of this GD pays more dividend than 92.31% of the companies listed in the same industry.
GD's Dividend Yield is comparable with the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
On average, the dividend of GD grows each year by 7.29%, which is quite nice.
GD has paid a dividend for at least 10 years, which is 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.
The dividend of GD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.22%
EPS Next 2Y17.39%
EPS Next 3Y14.81%
GENERAL DYNAMICS CORP
NYSE:GD (12/20/2024, 8:14:18 PM)
After market: 263.64 0 (0%)263.64
+3.36 (+1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.08%
Inst Owner Change4.62%
Ins Owners1.24%
Ins Owner Change0.13%
Market Cap72.49B
Analysts81.76
Price Target337.09 (27.86%)
Short Float %1.21%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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)0.68%
PT rev (3m)2.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-4.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.07%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 15.92 | ||
| P/S | 1.57 | ||
| P/FCF | 31.8 | ||
| P/OCF | 23.05 | ||
| P/B | 3.16 | ||
| P/tB | 114.52 | ||
| EV/EBITDA | 14.24 |
EPS(TTM)13.13
EY4.98%
EPS(NY)16.57
Fwd EY6.28%
FCF(TTM)8.29
FCFY3.15%
OCF(TTM)11.44
OCFY4.34%
SpS167.46
BVpS83.55
TBVpS2.3
PEG (NY)1.04
PEG (5Y)19.85
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 | 3.45 |
F-Score6
WACC9.39%
ROIC/WACC1.1
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 Y19.27%
EPS Next 2Y17.39%
EPS Next 3Y14.81%
EPS Next 5Y12.04%
Revenue 1Y (TTM)11.07%
Revenue growth 3Y3.68%
Revenue growth 5Y3.15%
Sales Q2Q%10.41%
Revenue Next Year13.81%
Revenue Next 2Y9.66%
Revenue Next 3Y7.54%
Revenue Next 5Y5.97%
EBIT growth 1Y11.4%
EBIT growth 3Y0.9%
EBIT growth 5Y-0.97%
EBIT Next Year36.29%
EBIT Next 3Y17.1%
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%