GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
NYSE:GD - US3695501086 - Common Stock
325.46 USD
+3.28 (+1.02%)
327.99 USD
+2.53 (+0.78%)
Overall GD gets a fundamental rating of 6 out of 10. We evaluated GD against 68 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
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
GD has a Return On Assets of 7.18%. This is amongst the best in the industry. GD outperforms 80.88% of its industry peers.
Looking at the Return On Equity, with a value of 17.33%, GD belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
The Return On Invested Capital of GD (11.19%) is better than 91.18% 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 8.40%.
The last Return On Invested Capital (11.19%) for GD is above the 3 year average (9.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 17.33% | ||
| ROIC | 11.19% |
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
The Profit Margin of GD (8.13%) is better than 75.00% of its industry peers.
GD's Profit Margin has declined in the last couple of years.
GD's Operating Margin of 10.30% is fine compared to the rest of the industry. GD outperforms 72.06% of its industry peers.
In the last couple of years the Operating Margin of GD has declined.
Looking at the Gross Margin, with a value of 15.40%, GD is doing worse than 70.59% of the companies in the same industry.
In the last couple of years the Gross Margin of GD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.3% | ||
| PM (TTM) | 8.13% | ||
| GM | 15.4% |
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.
Compared to 1 year ago, GD has less shares outstanding
Compared to 5 years ago, GD has less shares outstanding
GD has a better debt/assets ratio than last year.
2.2 Solvency
GD has an Altman-Z score of 3.94. This indicates that GD is financially healthy and has little risk of bankruptcy at the moment.
GD has a Altman-Z score (3.94) which is comparable to the rest of the industry.
GD has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as GD would need 2.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.11, GD belongs to the top of the industry, outperforming 92.65% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that GD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, GD is in the better half of the industry, outperforming 66.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 3.94 |
ROIC/WACC1.14
WACC9.8%
2.3 Liquidity
GD has a Current Ratio of 1.36. This is a normal value and indicates that GD is financially healthy and should not expect problems in meeting its short term obligations.
GD's Current ratio of 1.36 is on the low side compared to the rest of the industry. GD is outperformed by 69.12% of its industry peers.
A Quick Ratio of 0.83 indicates that GD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.83, GD is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.22% over the past year.
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.
Looking at the last year, GD shows a quite strong growth in Revenue. The Revenue has grown by 11.85% in the last year.
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)16.22%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%14.72%
Revenue 1Y (TTM)11.85%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%8.89%
3.2 Future
The Earnings Per Share is expected to grow by 10.75% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.88% on average over the next years.
EPS Next Y15.14%
EPS Next 2Y13.45%
EPS Next 3Y11.89%
EPS Next 5Y10.75%
Revenue Next Year8.48%
Revenue Next 2Y6.23%
Revenue Next 3Y5.1%
Revenue Next 5Y4.88%
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 21.84, which indicates a rather expensive current valuation of GD.
Based on the Price/Earnings ratio, GD is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GD to the average of the S&P500 Index (27.14), we can say GD is valued inline with the index average.
The Price/Forward Earnings ratio is 18.54, which indicates a rather expensive current valuation of GD.
GD's Price/Forward Earnings ratio is rather cheap when compared to the industry. GD is cheaper than 83.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, GD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.84 | ||
| Fwd PE | 18.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GD is valued cheaper than 86.76% 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 92.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.24 | ||
| EV/EBITDA | 15.43 |
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.
PEG (NY)1.44
PEG (5Y)8.31
EPS Next 2Y13.45%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.90%, GD has a reasonable but not impressive dividend return.
GD's Dividend Yield is rather good when compared to the industry average which is at 1.18. GD pays more dividend than 94.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of GD is nicely growing with an annual growth rate of 7.16%!
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
38.28% 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.
DP38.28%
EPS Next 2Y13.45%
EPS Next 3Y11.89%
325.46
+3.28 (+1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners76.46%
Inst Owner Change-1.33%
Ins Owners0.21%
Ins Owner Change2.01%
Market Cap87.55B
Analysts73.75
Price Target343.45 (5.53%)
Short Float %0.76%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend5.62
Dividend Growth(5Y)7.16%
DP38.28%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.22%
Min EPS beat(2)1.66%
Max EPS beat(2)2.78%
EPS beat(4)2
Avg EPS beat(4)-0.62%
Min EPS beat(4)-6.39%
Max EPS beat(4)2.78%
EPS beat(8)3
Avg EPS beat(8)-1.61%
EPS beat(12)5
Avg EPS beat(12)-1.11%
EPS beat(16)7
Avg EPS beat(16)-1.03%
Revenue beat(2)1
Avg Revenue beat(2)0.8%
Min Revenue beat(2)-1%
Max Revenue beat(2)2.6%
Revenue beat(4)2
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)2.6%
Revenue beat(8)5
Avg Revenue beat(8)0.59%
Revenue beat(12)7
Avg Revenue beat(12)0.66%
Revenue beat(16)8
Avg Revenue beat(16)-0.5%
PT rev (1m)10.36%
PT rev (3m)15.49%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)1.93%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)1.75%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.84 | ||
| Fwd PE | 18.54 | ||
| P/S | 1.74 | ||
| P/FCF | 21.24 | ||
| P/OCF | 17.45 | ||
| P/B | 3.71 | ||
| P/tB | 69.1 | ||
| EV/EBITDA | 15.43 |
EPS(TTM)14.9
EY4.58%
EPS(NY)17.56
Fwd EY5.39%
FCF(TTM)15.32
FCFY4.71%
OCF(TTM)18.65
OCFY5.73%
SpS186.9
BVpS87.66
TBVpS4.71
PEG (NY)1.44
PEG (5Y)8.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 17.33% | ||
| ROCE | 13.44% | ||
| ROIC | 11.19% | ||
| ROICexc | 11.65% | ||
| ROICexgc | 29.37% | ||
| OM | 10.3% | ||
| PM (TTM) | 8.13% | ||
| GM | 15.4% | ||
| FCFM | 8.2% |
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 Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 99.12% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 13.14 | ||
| Cash Conversion | 82.5% | ||
| Profit Quality | 100.86% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.94 |
F-Score7
WACC9.8%
ROIC/WACC1.14
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)16.22%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%14.72%
EPS Next Y15.14%
EPS Next 2Y13.45%
EPS Next 3Y11.89%
EPS Next 5Y10.75%
Revenue 1Y (TTM)11.85%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%8.89%
Revenue Next Year8.48%
Revenue Next 2Y6.23%
Revenue Next 3Y5.1%
Revenue Next 5Y4.88%
EBIT growth 1Y14.11%
EBIT growth 3Y4.83%
EBIT growth 5Y0.63%
EBIT Next Year27.63%
EBIT Next 3Y13.35%
EBIT Next 5Y10.65%
FCF growth 1Y36.46%
FCF growth 3Y-1.75%
FCF growth 5Y10.42%
OCF growth 1Y21.13%
OCF growth 3Y-1.15%
OCF growth 5Y6.98%