GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GD - US3695501086 - Common Stock
355.56 USD
+12.16 (+3.54%)
355.68 USD
+0.12 (+0.03%)
Overall GD gets a fundamental rating of 6 out of 10. We evaluated GD against 71 industry peers in the Aerospace & Defense industry. GD has only an average score on both its financial health and profitability. GD is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years GD had a positive operating cash flow.
1.2 Ratios
GD has a Return On Assets of 7.32%. This is amongst the best in the industry. GD outperforms 80.28% of its industry peers.
The Return On Equity of GD (17.25%) is better than 84.51% of its industry peers.
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 8.63%.
The 3 year average ROIC (9.79%) for GD is below the current ROIC(11.33%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 8.18%, GD is doing good in the industry, outperforming 71.83% of the companies in the same industry.
GD's Profit Margin has declined in the last couple of years.
GD has a Operating Margin of 10.34%. This is in the better half of the industry: GD outperforms 64.79% of its industry peers.
In the last couple of years the Operating Margin of GD has declined.
GD has a worse Gross Margin (15.33%) than 71.83% of its industry peers.
In the last couple of years the Gross Margin of GD has declined.
| 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
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
Compared to 1 year ago, GD has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 4.09, GD is in line with its industry, outperforming 52.11% of the companies in the same industry.
GD has a debt to FCF ratio of 1.67. This is a very positive value and a sign of high solvency as it would only need 1.67 years to pay back of all of its debts.
GD has a better Debt to FCF ratio (1.67) than 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 67.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.14
WACC9.97%
2.3 Liquidity
A Current Ratio of 1.40 indicates that GD should not have too much problems paying its short term obligations.
GD has a worse Current ratio (1.40) than 71.83% of its industry peers.
A Quick Ratio of 0.87 indicates that GD may have some problems paying its short term obligations.
GD's Quick ratio of 0.87 is on the low side compared to the rest of the industry. GD is outperformed by 78.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.87 |
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 11.86% 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)11.86%
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 10.88% yearly.
Based on estimates for the next years, GD will show a small growth in Revenue. The Revenue will grow by 5.14% on average per year.
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.
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
The Price/Earnings ratio is 23.04, which indicates a rather expensive current valuation of GD.
Based on the Price/Earnings ratio, GD is valued cheaper than 88.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.87, GD is valued at the same level.
With a Price/Forward Earnings ratio of 20.06, 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 92.96% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, GD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GD is valued 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 | 20 | ||
| EV/EBITDA | 16.15 |
4.3 Compensation for Growth
The 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.
GD's earnings are expected to grow with 12.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)8.76
EPS Next 2Y14%
EPS Next 3Y12.53%
5. Dividend
5.1 Amount
GD has a Yearly Dividend Yield of 1.78%. 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 0.39. GD pays more dividend than 95.77% of the companies in the same industry.
GD's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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.
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
37.41% of the earnings are spent on dividend by GD. This is a low number and 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%
355.56
+12.16 (+3.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners77.44%
Inst Owner Change0%
Ins Owners0.21%
Ins Owner Change0.83%
Market Cap96.04B
Revenue(TTM)51.51B
Net Income(TTM)4.21B
Analysts76.77
Price Target388.53 (9.27%)
Short Float %0.93%
Short Ratio2.16
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)0.78%
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)0.05%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 20.06 | ||
| P/S | 1.86 | ||
| P/FCF | 20 | ||
| P/OCF | 16.83 | ||
| P/B | 3.93 | ||
| P/tB | 44.44 | ||
| EV/EBITDA | 16.15 |
EPS(TTM)15.43
EY4.34%
EPS(NY)17.73
Fwd EY4.99%
FCF(TTM)17.77
FCFY5%
OCF(TTM)21.13
OCFY5.94%
SpS190.69
BVpS90.46
TBVpS8
PEG (NY)1.42
PEG (5Y)8.76
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
WACC9.97%
ROIC/WACC1.14
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 Year30.23%
EBIT Next 3Y14.96%
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.
What is the valuation status for GD stock?
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.
Can you provide the financial health for GD stock?
The financial health rating of GENERAL DYNAMICS CORP (GD) is 6 / 10.
Can you provide the dividend sustainability for GD stock?
The dividend rating of GENERAL DYNAMICS CORP (GD) is 6 / 10 and the dividend payout ratio is 37.41%.