GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GD - US3695501086 - Common Stock
345.39 USD
+1.55 (+0.45%)
345.39 USD
0 (0%)
GD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GD was profitable.
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
With an excellent Return On Assets value of 7.32%, GD belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.25%, GD belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
GD has a Return On Invested Capital of 11.33%. This is amongst the best in the industry. GD outperforms 87.32% 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 8.60%.
The last Return On Invested Capital (11.33%) for GD is above the 3 year average (9.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.32% | ||
| ROE | 17.25% | ||
| ROIC | 11.33% |
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
GD's Profit Margin of 8.18% is fine compared to the rest of the industry. GD outperforms 71.83% of its industry peers.
In the last couple of years the Profit Margin of GD has declined.
With a decent Operating Margin value of 10.34%, GD is doing good in the industry, outperforming 64.79% of the companies in the same industry.
GD's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 15.33%, GD is not doing good in the industry: 73.24% of the companies in the same industry are doing better.
GD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.34% | ||
| PM (TTM) | 8.18% | ||
| GM | 15.33% |
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
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 less 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 4.09. This indicates that GD is financially healthy and has little risk of bankruptcy at the moment.
GD has a Altman-Z score (4.09) which is comparable to the rest of the industry.
The Debt to FCF ratio of GD is 1.67, which is an excellent value as it means it would take GD, only 1.67 years of fcf income to pay off all of its debts.
GD's Debt to FCF ratio of 1.67 is amongst the best of the industry. GD outperforms 94.37% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that GD is not too dependend on debt financing.
GD has a Debt to Equity ratio of 0.29. This is in the better half of the industry: GD outperforms 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.19
WACC9.56%
2.3 Liquidity
A Current Ratio of 1.40 indicates that GD should not have too much problems paying its short term obligations.
GD's Current ratio of 1.40 is on the low side compared to the rest of the industry. GD is outperformed by 73.24% of its industry peers.
A Quick Ratio of 0.87 indicates that GD may have some problems paying its short term obligations.
The Quick ratio of GD (0.87) is worse than 80.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.52% over the past year.
GD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.63% yearly.
Looking at the last year, GD shows a quite strong growth in Revenue. The Revenue has grown by 11.86% in the last year.
The Revenue has been growing slightly by 3.93% on average over the past years.
EPS 1Y (TTM)17.52%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%15.82%
Revenue 1Y (TTM)11.86%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%10.59%
3.2 Future
The Earnings Per Share is expected to grow by 10.88% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.14% on average over the next years.
EPS Next Y16.21%
EPS Next 2Y14%
EPS Next 3Y12.53%
EPS Next 5Y10.88%
Revenue Next Year9.88%
Revenue Next 2Y7.18%
Revenue Next 3Y6.01%
Revenue Next 5Y5.14%
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 22.38, the valuation of GD can be described as rather expensive.
Based on the Price/Earnings ratio, GD is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
GD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.59.
With a Price/Forward Earnings ratio of 19.49, GD is valued on the expensive side.
GD's Price/Forward Earnings ratio is rather cheap when compared to the industry. GD is cheaper than 91.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, GD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.38 | ||
| Fwd PE | 19.49 |
4.2 Price Multiples
GD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GD is cheaper than 85.92% 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 97.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.43 | ||
| EV/EBITDA | 16.24 |
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 12.53% in the coming years.
PEG (NY)1.38
PEG (5Y)8.51
EPS Next 2Y14%
EPS Next 3Y12.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.78%, GD has a reasonable but not impressive dividend return.
GD's Dividend Yield is rather good when compared to the industry average which is at 0.41. GD pays more dividend than 95.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, GD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
On average, the dividend of GD grows each year by 7.16%, which is quite nice.
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)7.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
GD pays out 37.41% of its income as dividend. This is a sustainable payout ratio.
The dividend of GD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.41%
EPS Next 2Y14%
EPS Next 3Y12.53%
345.39
+1.55 (+0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners77.41%
Inst Owner Change0.54%
Ins Owners0.21%
Ins Owner Change0.83%
Market Cap93.30B
Revenue(TTM)51.51B
Net Income(TTM)4.21B
Analysts76.77
Price Target388.53 (12.49%)
Short Float %0.87%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend5.62
Dividend Growth(5Y)7.16%
DP37.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.28%
Min EPS beat(2)1.78%
Max EPS beat(2)2.78%
EPS beat(4)3
Avg EPS beat(4)1.42%
Min EPS beat(4)-0.53%
Max EPS beat(4)2.78%
EPS beat(8)3
Avg EPS beat(8)-1.55%
EPS beat(12)5
Avg EPS beat(12)-0.99%
EPS beat(16)7
Avg EPS beat(16)-0.92%
Revenue beat(2)1
Avg Revenue beat(2)1.16%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)2.6%
Revenue beat(4)2
Avg Revenue beat(4)0.68%
Min Revenue beat(4)-1%
Max Revenue beat(4)2.6%
Revenue beat(8)4
Avg Revenue beat(8)0.29%
Revenue beat(12)7
Avg Revenue beat(12)0.84%
Revenue beat(16)8
Avg Revenue beat(16)-0.16%
PT rev (1m)1.16%
PT rev (3m)13.13%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-1.3%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.38 | ||
| Fwd PE | 19.49 | ||
| P/S | 1.81 | ||
| P/FCF | 19.43 | ||
| P/OCF | 16.34 | ||
| P/B | 3.82 | ||
| P/tB | 43.17 | ||
| EV/EBITDA | 16.24 |
EPS(TTM)15.43
EY4.47%
EPS(NY)17.73
Fwd EY5.13%
FCF(TTM)17.77
FCFY5.15%
OCF(TTM)21.13
OCFY6.12%
SpS190.69
BVpS90.46
TBVpS8
PEG (NY)1.38
PEG (5Y)8.51
Graham Number177.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.32% | ||
| ROE | 17.25% | ||
| ROCE | 13.61% | ||
| ROIC | 11.33% | ||
| ROICexc | 11.33% | ||
| ROICexgc | 26.3% | ||
| OM | 10.34% | ||
| PM (TTM) | 8.18% | ||
| GM | 15.33% | ||
| FCFM | 9.32% |
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-Score8
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.67 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 99.45% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 12.99 | ||
| Cash Conversion | 91.49% | ||
| Profit Quality | 113.9% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 4.09 |
F-Score8
WACC9.56%
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 Y16.21%
EPS Next 2Y14%
EPS Next 3Y12.53%
EPS Next 5Y10.88%
Revenue 1Y (TTM)11.86%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%10.59%
Revenue Next Year9.88%
Revenue Next 2Y7.18%
Revenue Next 3Y6.01%
Revenue Next 5Y5.14%
EBIT growth 1Y14.29%
EBIT growth 3Y4.83%
EBIT growth 5Y0.63%
EBIT Next Year30.03%
EBIT Next 3Y14.77%
EBIT Next 5Y10.7%
FCF growth 1Y55.67%
FCF growth 3Y-1.75%
FCF growth 5Y10.42%
OCF growth 1Y36.62%
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 16.21% 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 37.41%.