GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
USA - NYSE:GD - US3695501086 - Common Stock
346.34 USD
+6.04 (+1.77%)
346.4 USD
+0.06 (+0.02%)
GD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. GD has only an average score on both its financial health and profitability. 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.
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
GD has a better Return On Assets (7.18%) than 80.28% of its industry peers.
With an excellent Return On Equity value of 17.33%, GD belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.19%, GD belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
GD had an Average Return On Invested Capital over the past 3 years of 9.79%. This is in line with the industry average of 8.48%.
The last Return On Invested Capital (11.19%) for GD is above the 3 year average (9.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 17.33% | ||
| ROIC | 11.19% |
ROA(3y)6.46%
ROA(5y)6.41%
ROE(3y)16.99%
ROE(5y)17.93%
ROIC(3y)9.79%
ROIC(5y)9.74%
1.3 Margins
Looking at the Profit Margin, with a value of 8.13%, GD is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
GD's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 10.30%, GD is doing good in the industry, outperforming 67.61% of the companies in the same industry.
In the last couple of years the Operating Margin of GD has declined.
With a Gross Margin value of 15.40%, GD is not doing good in the industry: 71.83% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.3% | ||
| PM (TTM) | 8.13% | ||
| GM | 15.4% |
OM growth 3Y-2.43%
OM growth 5Y-3.18%
PM growth 3Y-2.17%
PM growth 5Y-2.19%
GM growth 3Y-2.51%
GM growth 5Y-2.96%
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 has been reduced compared to 1 year ago.
Compared to 5 years ago, GD has less shares outstanding
GD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.02 indicates that GD is not in any danger for bankruptcy at the moment.
GD has a Altman-Z score (4.02) which is comparable to the rest of the industry.
GD has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as GD would need 2.11 years to pay back of all of its debts.
GD's Debt to FCF ratio of 2.11 is amongst the best of the industry. GD outperforms 92.96% 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 has a Debt to Equity ratio of 0.32. This is in the better half of the industry: GD outperforms 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.19
WACC9.38%
2.3 Liquidity
A Current Ratio of 1.36 indicates that GD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, GD is not doing good in the industry: 70.42% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that GD may have some problems paying its short term obligations.
The Quick ratio of GD (0.83) is worse than 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
GD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.52%, which is quite good.
The Earnings Per Share has been growing slightly by 2.63% on average over the past years.
The Revenue has grown by 12.88% 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 3.93% yearly.
EPS 1Y (TTM)17.52%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%15.82%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%10.59%
3.2 Future
GD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.75% yearly.
The Revenue is expected to grow by 4.88% on average over the next years.
EPS Next Y15.15%
EPS Next 2Y13.5%
EPS Next 3Y11.99%
EPS Next 5Y10.75%
Revenue Next Year8.45%
Revenue Next 2Y6.22%
Revenue Next 3Y5.15%
Revenue Next 5Y4.88%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.45, the valuation of GD can be described as rather expensive.
85.92% of the companies in the same industry are more expensive than GD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GD to the average of the S&P500 Index (25.83), we can say GD is valued inline with the index average.
A Price/Forward Earnings ratio of 19.71 indicates a rather expensive valuation of GD.
Based on the Price/Forward Earnings ratio, GD is valued cheaply inside the industry as 84.51% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, GD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 19.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GD is valued cheaper than 81.69% of the companies in the same industry.
GD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GD is cheaper than 92.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.61 | ||
| EV/EBITDA | 16.24 |
4.3 Compensation for Growth
GD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)8.54
EPS Next 2Y13.5%
EPS Next 3Y11.99%
5. Dividend
5.1 Amount
GD has a Yearly Dividend Yield of 1.74%. 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 1.12. GD pays more dividend than 94.37% of the companies in the same industry.
GD's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of GD is nicely growing with an annual growth rate of 7.16%!
GD has paid a dividend for at least 10 years, which is a reliable track record.
GD has decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
GD pays out 38.28% of its income as dividend. This is a sustainable payout ratio.
GD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.28%
EPS Next 2Y13.5%
EPS Next 3Y11.99%
346.34
+6.04 (+1.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.99%
Inst Owner Change-0.1%
Ins Owners0.21%
Ins Owner Change0.75%
Market Cap93.16B
Revenue(TTM)47.72B
Net Income(TTM)4.09B
Analysts75.33
Price Target384.08 (10.9%)
Short Float %0.88%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend5.62
Dividend Growth(5Y)7.16%
DP38.28%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.22%
Min EPS beat(2)1.66%
Max EPS beat(2)2.78%
EPS beat(4)2
Avg EPS beat(4)-0.62%
Min EPS beat(4)-6.39%
Max EPS beat(4)2.78%
EPS beat(8)3
Avg EPS beat(8)-1.61%
EPS beat(12)5
Avg EPS beat(12)-1.11%
EPS beat(16)7
Avg EPS beat(16)-1.03%
Revenue beat(2)1
Avg Revenue beat(2)0.8%
Min Revenue beat(2)-1%
Max Revenue beat(2)2.6%
Revenue beat(4)2
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)2.6%
Revenue beat(8)5
Avg Revenue beat(8)0.59%
Revenue beat(12)7
Avg Revenue beat(12)0.66%
Revenue beat(16)8
Avg Revenue beat(16)-0.5%
PT rev (1m)11.83%
PT rev (3m)23.41%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)1.57%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.93%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 19.71 | ||
| P/S | 1.85 | ||
| P/FCF | 22.61 | ||
| P/OCF | 18.57 | ||
| P/B | 3.95 | ||
| P/tB | 73.53 | ||
| EV/EBITDA | 16.24 |
EPS(TTM)15.43
EY4.46%
EPS(NY)17.57
Fwd EY5.07%
FCF(TTM)15.32
FCFY4.42%
OCF(TTM)18.65
OCFY5.39%
SpS186.9
BVpS87.66
TBVpS4.71
PEG (NY)1.48
PEG (5Y)8.54
Graham Number174.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 17.33% | ||
| ROCE | 13.44% | ||
| ROIC | 11.19% | ||
| ROICexc | 11.65% | ||
| ROICexgc | 29.37% | ||
| OM | 10.3% | ||
| PM (TTM) | 8.13% | ||
| GM | 15.4% | ||
| FCFM | 8.2% |
ROA(3y)6.46%
ROA(5y)6.41%
ROE(3y)16.99%
ROE(5y)17.93%
ROIC(3y)9.79%
ROIC(5y)9.74%
ROICexc(3y)10.23%
ROICexc(5y)10.26%
ROICexgc(3y)26.7%
ROICexgc(5y)28.25%
ROCE(3y)11.76%
ROCE(5y)11.7%
ROICexgc growth 3Y0.05%
ROICexgc growth 5Y-6.95%
ROICexc growth 3Y3.01%
ROICexc growth 5Y-2.13%
OM growth 3Y-2.43%
OM growth 5Y-3.18%
PM growth 3Y-2.17%
PM growth 5Y-2.19%
GM growth 3Y-2.51%
GM growth 5Y-2.96%
F-Score7
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 99.12% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 13.14 | ||
| Cash Conversion | 82.5% | ||
| Profit Quality | 100.86% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 4.02 |
F-Score7
WACC9.38%
ROIC/WACC1.19
Cap/Depr(3y)111.39%
Cap/Depr(5y)108.79%
Cap/Sales(3y)2.3%
Cap/Sales(5y)2.35%
Profit Quality(3y)100.61%
Profit Quality(5y)98.91%
High Growth Momentum
Growth
EPS 1Y (TTM)17.52%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%15.82%
EPS Next Y15.15%
EPS Next 2Y13.5%
EPS Next 3Y11.99%
EPS Next 5Y10.75%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%10.59%
Revenue Next Year8.45%
Revenue Next 2Y6.22%
Revenue Next 3Y5.15%
Revenue Next 5Y4.88%
EBIT growth 1Y14.11%
EBIT growth 3Y4.83%
EBIT growth 5Y0.63%
EBIT Next Year27.43%
EBIT Next 3Y13.39%
EBIT Next 5Y10.65%
FCF growth 1Y36.46%
FCF growth 3Y-1.75%
FCF growth 5Y10.42%
OCF growth 1Y21.13%
OCF growth 3Y-1.15%
OCF growth 5Y6.98%
GENERAL DYNAMICS CORP / GD FAQ
What is the ChartMill fundamental rating of GENERAL DYNAMICS CORP (GD) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GD.
Can you provide the valuation status for GENERAL DYNAMICS CORP?
ChartMill assigns a valuation rating of 6 / 10 to GENERAL DYNAMICS CORP (GD). This can be considered as Fairly Valued.
Can you provide the profitability details for GENERAL DYNAMICS CORP?
GENERAL DYNAMICS CORP (GD) has a profitability rating of 6 / 10.
What is the earnings growth outlook for GENERAL DYNAMICS CORP?
The Earnings per Share (EPS) of GENERAL DYNAMICS CORP (GD) is expected to grow by 15.15% in the next year.
How sustainable is the dividend of GENERAL DYNAMICS CORP (GD) stock?
The dividend rating of GENERAL DYNAMICS CORP (GD) is 6 / 10 and the dividend payout ratio is 38.28%.