GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
NYSE:GD - New York Stock Exchange, Inc. - US3695501086 - Common Stock - Currency: USD
Overall GD gets a fundamental rating of 6 out of 10. We evaluated GD against 66 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.
GD had a positive operating cash flow in the past year.
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
The Return On Assets of GD (7.03%) is better than 75.38% of its industry peers.
The Return On Equity of GD (17.89%) is better than 86.15% of its industry peers.
With an excellent Return On Invested Capital value of 11.07%, GD belongs to the best of the industry, outperforming 87.69% 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 8.44%.
The 3 year average ROIC (9.79%) for GD is below the current ROIC(11.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 17.89% | ||
| ROIC | 11.07% |
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 8.08% is fine compared to the rest of the industry. GD outperforms 73.85% of its industry peers.
In the last couple of years the Profit Margin of GD has declined.
GD has a Operating Margin of 10.22%. This is in the better half of the industry: GD outperforms 69.23% of its industry peers.
GD's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 15.43%, GD is not doing good in the industry: 73.85% 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 | 10.22% | ||
| PM (TTM) | 8.08% | ||
| GM | 15.43% |
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.
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 3.76. This indicates that GD is financially healthy and has little risk of bankruptcy at the moment.
GD's Altman-Z score of 3.76 is in line compared to the rest of the industry. GD outperforms 53.85% of its industry peers.
The Debt to FCF ratio of GD is 2.88, which is a good value as it means it would take GD, 2.88 years of fcf income to pay off all of its debts.
GD has a Debt to FCF ratio of 2.88. This is amongst the best in the industry. GD outperforms 90.77% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that GD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, GD is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.88 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.06
WACC10.44%
2.3 Liquidity
GD has a Current Ratio of 1.34. This is a normal value and indicates that GD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.34, GD is not doing good in the industry: 67.69% of the companies in the same industry are doing better.
GD has a Quick Ratio of 1.34. 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 0.82, GD is not doing good in the industry: 75.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.62% 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 14.11% in the last year.
GD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.93% yearly.
EPS 1Y (TTM)17.62%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%27.08%
Revenue 1Y (TTM)14.11%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%13.9%
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 10.00% yearly.
The Revenue is expected to grow by 4.42% on average over the next years.
EPS Next Y12.96%
EPS Next 2Y12.41%
EPS Next 3Y11.14%
EPS Next 5Y10%
Revenue Next Year6.62%
Revenue Next 2Y5.43%
Revenue Next 3Y4.45%
Revenue Next 5Y4.42%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.96, which indicates a rather expensive current valuation of GD.
84.62% of the companies in the same industry are more expensive than GD, based on the Price/Earnings ratio.
GD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 17.53, GD is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GD is valued cheaper than 89.23% of the companies in the same industry.
GD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 17.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GD indicates a rather cheap valuation: GD is cheaper than 84.62% of the companies listed in the same industry.
90.77% 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 | 24.31 | ||
| EV/EBITDA | 15.1 |
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.
PEG (NY)1.62
PEG (5Y)7.97
EPS Next 2Y12.41%
EPS Next 3Y11.14%
5. Dividend
5.1 Amount
GD has a Yearly Dividend Yield of 1.98%. 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 1.20. GD pays more dividend than 93.85% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, GD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
On average, the dividend of GD grows each year by 7.16%, which is quite nice.
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
39.00% 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.
DP39%
EPS Next 2Y12.41%
EPS Next 3Y11.14%
302.2
-1.18 (-0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners76.5%
Inst Owner Change0%
Ins Owners0.21%
Ins Owner Change1.76%
Market Cap81.11B
Analysts73.75
Price Target299.35 (-0.94%)
Short Float %0.93%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend5.62
Dividend Growth(5Y)7.16%
DP39%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.56%
Min EPS beat(2)-0.53%
Max EPS beat(2)1.66%
EPS beat(4)1
Avg EPS beat(4)-2.1%
Min EPS beat(4)-6.39%
Max EPS beat(4)1.66%
EPS beat(8)3
Avg EPS beat(8)-1.68%
EPS beat(12)4
Avg EPS beat(12)-1.5%
EPS beat(16)6
Avg EPS beat(16)-1.24%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-1%
Max Revenue beat(2)1.41%
Revenue beat(4)2
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)1.65%
Revenue beat(8)5
Avg Revenue beat(8)0.79%
Revenue beat(12)6
Avg Revenue beat(12)0.01%
Revenue beat(16)7
Avg Revenue beat(16)-0.9%
PT rev (1m)0.57%
PT rev (3m)1.26%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)3.09%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 17.53 | ||
| P/S | 1.65 | ||
| P/FCF | 24.31 | ||
| P/OCF | 19.15 | ||
| P/B | 3.65 | ||
| P/tB | 579.36 | ||
| EV/EBITDA | 15.1 |
EPS(TTM)14.42
EY4.77%
EPS(NY)17.24
Fwd EY5.7%
FCF(TTM)12.43
FCFY4.11%
OCF(TTM)15.78
OCFY5.22%
SpS183.34
BVpS82.81
TBVpS0.52
PEG (NY)1.62
PEG (5Y)7.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 17.89% | ||
| ROCE | 13.29% | ||
| ROIC | 11.07% | ||
| ROICexc | 11.44% | ||
| ROICexgc | 28.88% | ||
| OM | 10.22% | ||
| PM (TTM) | 8.08% | ||
| GM | 15.43% | ||
| FCFM | 6.78% |
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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.88 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 100.11% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 12.54 | ||
| Cash Conversion | 71.46% | ||
| Profit Quality | 83.88% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 3.76 |
F-Score7
WACC10.44%
ROIC/WACC1.06
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)17.62%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%27.08%
EPS Next Y12.96%
EPS Next 2Y12.41%
EPS Next 3Y11.14%
EPS Next 5Y10%
Revenue 1Y (TTM)14.11%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%13.9%
Revenue Next Year6.62%
Revenue Next 2Y5.43%
Revenue Next 3Y4.45%
Revenue Next 5Y4.42%
EBIT growth 1Y15.77%
EBIT growth 3Y4.83%
EBIT growth 5Y0.63%
EBIT Next Year27.41%
EBIT Next 3Y12.98%
EBIT Next 5Y10.3%
FCF growth 1Y12.78%
FCF growth 3Y-1.75%
FCF growth 5Y10.42%
OCF growth 1Y3.49%
OCF growth 3Y-1.15%
OCF growth 5Y6.98%