GENERAL DYNAMICS CORP (GD)

US3695501086 - Common Stock

282.49  +0.59 (+0.21%)

After market: 282.49 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to GD. GD was compared to 65 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.



6

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.
In the past 5 years GD always reported a positive cash flow from operatings.

1.2 Ratios

With a decent Return On Assets value of 6.05%, GD is doing good in the industry, outperforming 75.38% of the companies in the same industry.
GD has a Return On Equity of 15.56%. This is amongst the best in the industry. GD outperforms 84.62% of its industry peers.
With an excellent Return On Invested Capital value of 9.25%, GD belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GD is in line with the industry average of 8.68%.
Industry RankSector Rank
ROA 6.05%
ROE 15.56%
ROIC 9.25%
ROA(3y)6.37%
ROA(5y)6.47%
ROE(3y)17.43%
ROE(5y)19.49%
ROIC(3y)9.53%
ROIC(5y)10.06%

1.3 Margins

With a decent Profit Margin value of 7.84%, GD is doing good in the industry, outperforming 72.31% of the companies in the same industry.
In the last couple of years the Profit Margin of GD has declined.
GD's Operating Margin of 10.04% is fine compared to the rest of the industry. GD outperforms 73.85% of its industry peers.
In the last couple of years the Operating Margin of GD has declined.
GD's Gross Margin of 15.78% is on the low side compared to the rest of the industry. GD is outperformed by 69.23% of its industry peers.
GD's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 10.04%
PM (TTM) 7.84%
GM 15.78%
OM growth 3Y-2.69%
OM growth 5Y-4%
PM growth 3Y-2.07%
PM growth 5Y-3.23%
GM growth 3Y-1.82%
GM growth 5Y-3.18%

6

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 about the same amout of 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 3.57 indicates that GD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.57, GD is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
GD has a debt to FCF ratio of 2.55. This is a good value and a sign of high solvency as GD would need 2.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.55, GD belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
GD has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.43, GD perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 2.55
Altman-Z 3.57
ROIC/WACC1.1
WACC8.4%

2.3 Liquidity

A Current Ratio of 1.44 indicates that GD should not have too much problems paying its short term obligations.
The Current ratio of GD (1.44) is worse than 64.62% of its industry peers.
A Quick Ratio of 0.92 indicates that GD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.92, GD is doing worse than 70.77% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 0.92

4

3. Growth

3.1 Past

The earnings per share for GD have decreased by -1.48% in the last year.
The Earnings Per Share has been growing slightly by 1.01% on average over the past years.
The Revenue has been growing slightly by 7.27% in the past year.
Measured over the past years, GD shows a small growth in Revenue. The Revenue has been growing by 3.15% on average per year.
EPS 1Y (TTM)-1.48%
EPS 3Y3%
EPS 5Y1.01%
EPS growth Q2Q1.68%
Revenue 1Y (TTM)7.27%
Revenue growth 3Y3.68%
Revenue growth 5Y3.15%
Revenue growth Q2Q7.53%

3.2 Future

The Earnings Per Share is expected to grow by 13.89% on average over the next years. This is quite good.
Based on estimates for the next years, GD will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
EPS Next Y25.37%
EPS Next 2Y18.35%
EPS Next 3Y14.75%
EPS Next 5Y13.89%
Revenue Next Year10.55%
Revenue Next 2Y7.27%
Revenue Next 3Y5.78%
Revenue Next 5Y4.99%

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.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 23.50 indicates a rather expensive valuation of GD.
76.92% of the companies in the same industry are more expensive than GD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.48, GD is valued at the same level.
With a Price/Forward Earnings ratio of 18.75, GD is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GD is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
GD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.5
Fwd PE 18.75

4.2 Price Multiples

70.77% of the companies in the same industry are more expensive than GD, based on the Enterprise Value to EBITDA ratio.
90.77% of the companies in the same industry are more expensive than GD, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 20.36
EV/EBITDA 16.65

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GD may justify a higher PE ratio.
GD's earnings are expected to grow with 14.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)23.23
EPS Next 2Y18.35%
EPS Next 3Y14.75%

6

5. Dividend

5.1 Amount

GD has a Yearly Dividend Yield of 2.02%.
Compared to an average industry Dividend Yield of 1.30, GD pays a better dividend. On top of this GD pays more dividend than 92.31% of the companies listed in the same industry.
GD's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.02%

5.2 History

On average, the dividend of GD grows each year by 7.29%, which is quite nice.
GD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GD decreased recently.
Dividend Growth(5Y)7.29%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

43.08% of the earnings are spent on dividend by GD. This is a bit on the high side, but may be sustainable.
The dividend of GD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.08%
EPS Next 2Y18.35%
EPS Next 3Y14.75%

GENERAL DYNAMICS CORP

NYSE:GD (3/28/2024, 7:14:39 PM)

After market: 282.49 0 (0%)

282.49

+0.59 (+0.21%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap77.40B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.02%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 23.5
Fwd PE 18.75
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.93
PEG (5Y)23.23
Profitability
Industry RankSector Rank
ROA 6.05%
ROE 15.56%
ROCE
ROIC
ROICexc
ROICexgc
OM 10.04%
PM (TTM) 7.84%
GM 15.78%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.44
Quick Ratio 0.92
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.48%
EPS 3Y3%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.27%
Revenue growth 3Y3.68%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y