GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GD - US3695501086 - Common Stock
341.63 USD
+1.59 (+0.47%)
341.63 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. 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
In the past year GD was profitable.
In the past year GD had a positive cash flow from operations.
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
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.
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 better Return On Invested Capital (11.33%) than 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 8.53%.
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 has a Profit Margin of 8.18%. This is in the better half of the industry: GD outperforms 71.83% of its industry peers.
In the last couple of years the Profit Margin of GD has declined.
GD has a Operating Margin of 10.34%. This is in the better half of the industry: GD outperforms 69.01% of its industry peers.
GD's Operating Margin has declined in the last couple of years.
GD has a worse Gross Margin (15.33%) than 70.42% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GD is still creating some value.
The number of shares outstanding for GD has been reduced compared to 1 year ago.
The number of shares outstanding for GD has been reduced compared to 5 years ago.
The debt/assets ratio for GD has been reduced compared to a year ago.
2.2 Solvency
GD has an Altman-Z score of 4.08. This indicates that GD is financially healthy and has little risk of bankruptcy at the moment.
GD has a Altman-Z score (4.08) which is comparable to the rest of the 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 Debt to FCF ratio of 1.67. This is amongst the best in 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.
The Debt to Equity ratio of GD (0.29) is better than 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 4.08 |
ROIC/WACC1.13
WACC9.99%
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 69.01% of its industry peers.
GD has a Quick Ratio of 1.40. 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 has a Quick ratio of 0.87. This is in the lower half of the industry: GD underperforms 74.65% 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.
Measured over the past 5 years, GD shows a small growth in Earnings Per Share. The EPS has been growing by 2.63% on average per year.
The Revenue has grown by 11.86% in the past year. This is quite good.
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)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
Based on estimates for the next years, GD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.88% on average per year.
GD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y16.09%
EPS Next 2Y14.03%
EPS Next 3Y12.45%
EPS Next 5Y10.88%
Revenue Next Year9.79%
Revenue Next 2Y7.1%
Revenue Next 3Y5.9%
Revenue Next 5Y5.14%
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
The Price/Earnings ratio is 22.14, which indicates a rather expensive current valuation of GD.
Based on the Price/Earnings ratio, GD is valued cheaply inside the industry as 85.92% of the companies are valued more expensively.
GD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
GD is valuated rather expensively with a Price/Forward Earnings ratio of 19.26.
Based on the Price/Forward Earnings ratio, GD is valued cheaper than 87.32% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.56. GD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 19.26 |
4.2 Price Multiples
81.69% of the companies in the same industry are more expensive than GD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GD indicates a rather cheap valuation: GD is cheaper than 97.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.22 | ||
| EV/EBITDA | 16.08 |
4.3 Compensation for Growth
GD's 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.
A more expensive valuation may be justified as GD's earnings are expected to grow with 12.45% in the coming years.
PEG (NY)1.38
PEG (5Y)8.42
EPS Next 2Y14.03%
EPS Next 3Y12.45%
5. Dividend
5.1 Amount
GD has a Yearly Dividend Yield of 1.76%.
GD's Dividend Yield is rather good when compared to the industry average which is at 1.14. GD pays more dividend than 95.77% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, GD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
The dividend of GD is nicely growing with an annual growth rate of 7.16%!
GD has been paying a dividend for at least 10 years, so it has 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 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 2Y14.03%
EPS Next 3Y12.45%
341.63
+1.59 (+0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners75.99%
Inst Owner Change0.53%
Ins Owners0.21%
Ins Owner Change0.61%
Market Cap92.28B
Revenue(TTM)51.51B
Net Income(TTM)4.21B
Analysts76.67
Price Target385.52 (12.85%)
Short Float %0.85%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)0.38%
PT rev (3m)12.25%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)0.82%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 19.26 | ||
| P/S | 1.79 | ||
| P/FCF | 19.22 | ||
| P/OCF | 16.17 | ||
| P/B | 3.78 | ||
| P/tB | 42.7 | ||
| EV/EBITDA | 16.08 |
EPS(TTM)15.43
EY4.52%
EPS(NY)17.74
Fwd EY5.19%
FCF(TTM)17.77
FCFY5.2%
OCF(TTM)21.13
OCFY6.19%
SpS190.69
BVpS90.46
TBVpS8
PEG (NY)1.38
PEG (5Y)8.42
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 | 4.08 |
F-Score8
WACC9.99%
ROIC/WACC1.13
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 Y16.09%
EPS Next 2Y14.03%
EPS Next 3Y12.45%
EPS Next 5Y10.88%
Revenue 1Y (TTM)11.86%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%10.59%
Revenue Next Year9.79%
Revenue Next 2Y7.1%
Revenue Next 3Y5.9%
Revenue Next 5Y5.14%
EBIT growth 1Y14.29%
EBIT growth 3Y4.83%
EBIT growth 5Y0.63%
EBIT Next Year27.43%
EBIT Next 3Y13.39%
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 16.09% 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%.