GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
NYSE:GD - New York Stock Exchange, Inc. - US3695501086 - Common Stock - Currency: USD
Taking everything into account, GD scores 6 out of 10 in our fundamental rating. GD was compared to 67 industry peers in the Aerospace & Defense industry. GD has an average financial health and profitability rating. 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.
GD had a positive operating cash flow in the past year.
Each year in the past 5 years GD has been profitable.
GD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.18%, GD is doing good in the industry, outperforming 79.10% of the companies in the same industry.
With an excellent Return On Equity value of 17.33%, GD belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.19%, GD belongs to the top of the industry, outperforming 91.04% 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 8.40%.
The 3 year average ROIC (9.79%) for GD is below the current ROIC(11.19%), indicating increased profibility in the last year.
| 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
GD has a Profit Margin of 8.13%. This is in the better half of the industry: GD outperforms 74.63% of its industry peers.
GD's Profit Margin has declined in the last couple of years.
GD has a Operating Margin of 10.30%. This is in the better half of the industry: GD outperforms 73.13% of its industry peers.
In the last couple of years the Operating Margin of GD has declined.
Looking at the Gross Margin, with a value of 15.40%, GD is doing worse than 73.13% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GD is still creating some value.
GD has less shares outstanding than it did 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
GD has an Altman-Z score of 3.88. This indicates that GD is financially healthy and has little risk of bankruptcy at the moment.
GD has a Altman-Z score (3.88) which is in line with its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.11, GD belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that GD is not too dependend on debt financing.
GD has a Debt to Equity ratio of 0.32. This is in the better half of the industry: GD outperforms 70.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 3.88 |
ROIC/WACC1.15
WACC9.76%
2.3 Liquidity
GD has a Current Ratio of 1.36. This is a normal value and indicates that GD is financially healthy and should not expect problems in meeting its short term obligations.
GD has a Current ratio of 1.36. This is in the lower half of the industry: GD underperforms 67.16% of its industry peers.
GD has a Quick Ratio of 1.36. This is a bad value and indicates that GD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.83, GD is not doing good in the industry: 74.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.22% over the past year.
The Earnings Per Share has been growing slightly by 2.63% on average over the past years.
GD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.85%.
Measured over the past years, GD shows a small growth in Revenue. The Revenue has been growing by 3.93% on average per year.
EPS 1Y (TTM)16.22%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%14.72%
Revenue 1Y (TTM)11.85%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%8.89%
3.2 Future
The Earnings Per Share is expected to grow by 10.00% on average over the next years. This is quite good.
Based on estimates for the next years, GD will show a small growth in Revenue. The Revenue will grow by 4.42% on average per year.
EPS Next Y12.96%
EPS Next 2Y12.41%
EPS Next 3Y11.14%
EPS Next 5Y10%
Revenue Next Year8.11%
Revenue Next 2Y6.08%
Revenue Next 3Y5.02%
Revenue Next 5Y4.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GD is valuated rather expensively with a Price/Earnings ratio of 20.86.
Based on the Price/Earnings ratio, GD is valued cheaper than 89.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. GD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.03 indicates a rather expensive valuation of GD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GD indicates a rather cheap valuation: GD is cheaper than 89.55% of the companies listed in the same industry.
GD is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 18.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GD is valued cheaply inside the industry as 89.55% of the companies are valued more expensively.
97.01% of the companies in the same industry are more expensive than GD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.28 | ||
| EV/EBITDA | 14.93 |
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)1.61
PEG (5Y)7.93
EPS Next 2Y12.41%
EPS Next 3Y11.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.93%, GD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.16, GD pays a better dividend. On top of this GD pays more dividend than 94.03% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, GD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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
38.28% of the earnings are spent on dividend by GD. This is a low number and sustainable payout ratio.
GD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.28%
EPS Next 2Y12.41%
EPS Next 3Y11.14%
310.74
-0.87 (-0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners76.5%
Inst Owner Change-0.65%
Ins Owners0.21%
Ins Owner Change1.96%
Market Cap83.59B
Analysts73.75
Price Target311.21 (0.15%)
Short Float %0.86%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)3.96%
PT rev (3m)5.62%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-0.86%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 18.03 | ||
| P/S | 1.66 | ||
| P/FCF | 20.28 | ||
| P/OCF | 16.66 | ||
| P/B | 3.54 | ||
| P/tB | 65.97 | ||
| EV/EBITDA | 14.93 |
EPS(TTM)14.9
EY4.8%
EPS(NY)17.24
Fwd EY5.55%
FCF(TTM)15.32
FCFY4.93%
OCF(TTM)18.65
OCFY6%
SpS186.9
BVpS87.66
TBVpS4.71
PEG (NY)1.61
PEG (5Y)7.93
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%
ROICexcg growth 3Y0.05%
ROICexcg 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 | 3.88 |
F-Score7
WACC9.76%
ROIC/WACC1.15
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)16.22%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%14.72%
EPS Next Y12.96%
EPS Next 2Y12.41%
EPS Next 3Y11.14%
EPS Next 5Y10%
Revenue 1Y (TTM)11.85%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%8.89%
Revenue Next Year8.11%
Revenue Next 2Y6.08%
Revenue Next 3Y5.02%
Revenue Next 5Y4.42%
EBIT growth 1Y14.11%
EBIT growth 3Y4.83%
EBIT growth 5Y0.63%
EBIT Next Year27.41%
EBIT Next 3Y12.98%
EBIT Next 5Y10.3%
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%