GENERAL DYNAMICS CORP (GD)
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 correct valuation and a medium growth rate.
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.
Each year in the past 5 years GD has been profitable.
Each year in the past 5 years GD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GD (6.35%) is better 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.
GD has a Return On Invested Capital of 10.32%. This is amongst the best in the industry. GD outperforms 87.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GD is in line with the industry average of 7.71%.
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
GD's Profit Margin of 7.90% is fine compared to the rest of the industry. GD outperforms 73.85% of its industry peers.
In the last couple of years the Profit Margin of GD has declined.
The Operating Margin of GD (10.12%) is better than 67.69% of its industry peers.
GD's Operating Margin has declined in the last couple of years.
GD's Gross Margin of 15.64% is on the low side compared to the rest of the industry. GD is outperformed by 69.23% of its industry peers.
In the last couple of years the Gross Margin of GD has declined.
| 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
GD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
An Altman-Z score of 3.54 indicates that GD is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.54, GD perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
GD has a debt to FCF ratio of 4.06. This is a neutral value as GD would need 4.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.06, GD is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
GD has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GD (0.32) is better than 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.19
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.32 indicates that GD should not have too much problems paying its short term obligations.
GD's Current ratio of 1.32 is on the low side compared to the rest of the industry. GD is outperformed by 64.62% of its industry peers.
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.
GD's Quick ratio of 0.80 is on the low side compared to the rest of the industry. GD is outperformed by 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
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.
GD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.01% yearly.
GD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.07%.
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 12.28% on average per year.
The Revenue is expected to grow by 5.44% on average over the next years.
EPS Next Y19.22%
EPS Next 2Y17.4%
EPS Next 3Y14.8%
EPS Next 5Y12.28%
Revenue Next Year13.8%
Revenue Next 2Y9.67%
Revenue Next 3Y7.54%
Revenue Next 5Y5.44%
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 21.36, GD is valued on the expensive side.
78.46% of the companies in the same industry are more expensive than GD, based on the Price/Earnings ratio.
GD is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.93, 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 84.62% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. GD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 16.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GD is valued a bit cheaper than 78.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GD is valued a bit cheaper than the industry average as 78.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.83 | ||
| EV/EBITDA | 15.22 |
4.3 Compensation for Growth
The 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 14.80% in the coming years.
PEG (NY)1.11
PEG (5Y)21.12
EPS Next 2Y17.4%
EPS Next 3Y14.8%
5. Dividend
5.1 Amount
GD has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
GD's Dividend Yield is rather good when compared to the industry average which is at 1.49. GD pays more dividend than 92.31% of the companies in the same industry.
GD's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of GD is nicely growing with an annual growth rate of 7.29%!
GD has paid a dividend for at least 10 years, which is a reliable track record.
GD has decreased its dividend recently.
Dividend Growth(5Y)7.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
41.22% of the earnings are spent on dividend by GD. 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 2Y17.4%
EPS Next 3Y14.8%
GENERAL DYNAMICS CORP
NYSE:GD (11/21/2024, 3:14:00 PM)
280.495
+0.44 (+0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap77.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 16.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.11
PEG (5Y)21.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 15.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.12% | ||
| PM (TTM) | 7.9% | ||
| GM | 15.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.78%
EPS 3Y3%
EPS 5Y
EPS Q2Q%
EPS Next Y19.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.07%
Revenue growth 3Y3.68%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y