GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GD - US3695501086 - Common Stock
351.44 USD
+5.8 (+1.68%)
352.48 USD
+1.04 (+0.3%)
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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GD had positive earnings in the past year.
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
GD's Return On Assets of 7.32% is amongst the best of 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 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 8.63%.
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.
GD's Operating Margin of 10.34% is fine compared to the rest of the industry. GD outperforms 64.79% of its industry peers.
In the last couple of years the Operating Margin of GD has declined.
With a Gross Margin value of 15.33%, GD is not doing good in the industry: 71.83% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GD is creating some value.
GD has less shares outstanding than it did 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
An Altman-Z score of 4.10 indicates that GD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.10, GD is in line with its industry, outperforming 52.11% of the companies in the same 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.
The Debt to FCF ratio of GD (1.67) is better than 94.37% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that GD is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.29, GD is doing good in the industry, outperforming 67.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 4.1 |
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 has a Current ratio of 1.40. This is in the lower half of the industry: GD underperforms 71.83% of its industry peers.
A Quick Ratio of 0.87 indicates that GD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, GD is doing worse than 78.87% of the companies in the same industry.
| 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.
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.
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
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.
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
With a Price/Earnings ratio of 22.78, GD is valued on the expensive side.
Based on the Price/Earnings ratio, GD is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
GD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.00.
A Price/Forward Earnings ratio of 19.83 indicates a rather expensive valuation of GD.
Based on the Price/Forward Earnings ratio, GD is valued cheaper than 92.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GD to the average of the S&P500 Index (23.70), we can say GD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.78 | ||
| Fwd PE | 19.83 |
4.2 Price Multiples
87.32% 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 | 19.77 | ||
| EV/EBITDA | 16.25 |
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.
GD's earnings are expected to grow with 12.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.4
PEG (5Y)8.66
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.
Compared to an average industry Dividend Yield of 0.39, GD pays a better dividend. On top of this GD pays more dividend than 95.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, 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.
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.
GD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.41%
EPS Next 2Y14%
EPS Next 3Y12.53%
351.44
+5.8 (+1.68%)
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 Cap94.93B
Revenue(TTM)51.51B
Net Income(TTM)4.21B
Analysts76.77
Price Target388.53 (10.55%)
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 | 22.78 | ||
| Fwd PE | 19.83 | ||
| P/S | 1.84 | ||
| P/FCF | 19.77 | ||
| P/OCF | 16.63 | ||
| P/B | 3.89 | ||
| P/tB | 43.93 | ||
| EV/EBITDA | 16.25 |
EPS(TTM)15.43
EY4.39%
EPS(NY)17.73
Fwd EY5.04%
FCF(TTM)17.77
FCFY5.06%
OCF(TTM)21.13
OCFY6.01%
SpS190.69
BVpS90.46
TBVpS8
PEG (NY)1.4
PEG (5Y)8.66
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 | 4.1 |
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 Y16.21%
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%.