GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GD - US3695501086 - Common Stock
353.89 USD
+2.45 (+0.7%)
353.89 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GD. GD was compared to 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.
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
With an excellent Return On Assets value of 7.32%, GD belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
GD has a better Return On Equity (17.25%) than 84.51% of its industry peers.
With an excellent Return On Invested Capital value of 11.33%, GD belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GD is in line with the industry average of 8.54%.
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
Looking at the Profit Margin, with a value of 8.18%, GD is in the better half of 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 better Operating Margin (10.34%) than 64.79% of its industry peers.
GD's Operating Margin has declined in the last couple of years.
GD's Gross Margin of 15.33% is on the low side compared to the rest of the industry. GD is outperformed by 71.83% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GD is creating some value.
Compared to 1 year ago, GD has less shares outstanding
The number of shares outstanding for GD has been reduced compared to 5 years ago.
Compared to 1 year ago, GD has an improved debt to assets ratio.
2.2 Solvency
GD has an Altman-Z score of 4.14. This indicates that GD is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.14, GD perfoms like the industry average, outperforming 50.70% 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 Debt to FCF ratio of 1.67. This is amongst the best in the industry. GD outperforms 94.37% of its industry peers.
GD has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
GD's Debt to Equity ratio of 0.29 is fine compared to the rest 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 | 4.14 |
ROIC/WACC1.22
WACC9.31%
2.3 Liquidity
A Current Ratio of 1.40 indicates that GD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.40, GD is doing worse than 71.83% of the companies in the same industry.
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.
The Quick ratio of GD (0.87) is worse than 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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.94, which indicates a rather expensive current valuation of GD.
Compared to the rest of the industry, the Price/Earnings ratio of GD indicates a rather cheap valuation: GD is cheaper than 88.73% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. GD is around the same levels.
With a Price/Forward Earnings ratio of 19.97, GD is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GD is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
GD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 19.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GD is valued cheaper than 84.51% 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 | 19.91 | ||
| EV/EBITDA | 16.61 |
4.3 Compensation for Growth
The 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)1.41
PEG (5Y)8.72
EPS Next 2Y14%
EPS Next 3Y12.53%
5. Dividend
5.1 Amount
GD has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.37, 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 1.92, GD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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.
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%
353.89
+2.45 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners77.44%
Inst Owner Change0.25%
Ins Owners0.21%
Ins Owner Change0.83%
Market Cap95.59B
Revenue(TTM)51.51B
Net Income(TTM)4.21B
Analysts76.25
Price Target388.53 (9.79%)
Short Float %0.93%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)0.31%
PT rev (3m)13.42%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-1.67%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 19.97 | ||
| P/S | 1.86 | ||
| P/FCF | 19.91 | ||
| P/OCF | 16.75 | ||
| P/B | 3.91 | ||
| P/tB | 44.24 | ||
| EV/EBITDA | 16.61 |
EPS(TTM)15.43
EY4.36%
EPS(NY)17.73
Fwd EY5.01%
FCF(TTM)17.77
FCFY5.02%
OCF(TTM)21.13
OCFY5.97%
SpS190.69
BVpS90.46
TBVpS8
PEG (NY)1.41
PEG (5Y)8.72
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 | 4.14 |
F-Score8
WACC9.31%
ROIC/WACC1.22
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%.