GENERAL DYNAMICS CORP (GDX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GDX - US3695501086 - Common Stock
293.45 EUR
-12.4 (-4.05%)
We assign a fundamental rating of 6 out of 10 to GDX. GDX was compared to 53 industry peers in the Aerospace & Defense industry. GDX is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. GDX has a correct valuation and a medium growth rate. Finally GDX also has an excellent dividend rating. With these ratings, GDX could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- GDX had positive earnings in the past year.
- GDX had a positive operating cash flow in the past year.
- In the past 5 years GDX has always been profitable.
- GDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GDX has a Return On Assets of 7.32%. This is amongst the best in the industry. GDX outperforms 84.91% of its industry peers.
- GDX has a better Return On Equity (17.25%) than 60.38% of its industry peers.
- With a decent Return On Invested Capital value of 11.33%, GDX is doing good in the industry, outperforming 71.70% of the companies in the same industry.
- GDX had an Average Return On Invested Capital over the past 3 years of 9.79%. This is in line with the industry average of 9.24%.
- The 3 year average ROIC (9.79%) for GDX 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%, GDX is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
- In the last couple of years the Profit Margin of GDX has declined.
- GDX's Operating Margin of 10.34% is fine compared to the rest of the industry. GDX outperforms 67.92% of its industry peers.
- In the last couple of years the Operating Margin of GDX has declined.
- With a Gross Margin value of 15.33%, GDX is not doing good in the industry: 83.02% of the companies in the same industry are doing better.
- GDX'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
- GDX 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 GDX has been reduced compared to 1 year ago.
- GDX has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GDX has an improved debt to assets ratio.
2.2 Solvency
- GDX has an Altman-Z score of 4.19. This indicates that GDX is financially healthy and has little risk of bankruptcy at the moment.
- GDX has a Altman-Z score of 4.19. This is in the better half of the industry: GDX outperforms 75.47% of its industry peers.
- GDX 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.
- With an excellent Debt to FCF ratio value of 1.67, GDX belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
- GDX has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- GDX has a Debt to Equity ratio of 0.29. This is in the better half of the industry: GDX outperforms 69.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.15
WACC9.89%
2.3 Liquidity
- GDX has a Current Ratio of 1.40. This is a normal value and indicates that GDX is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.40, GDX is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
- GDX has a Quick Ratio of 1.40. This is a bad value and indicates that GDX is not financially healthy enough and could expect problems in meeting its short term obligations.
- GDX's Quick ratio of 0.87 is in line compared to the rest of the industry. GDX outperforms 54.72% of its industry peers.
| 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.
- Measured over the past years, GDX shows a small growth in Revenue. The Revenue has been growing by 3.93% on average per year.
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
- GDX 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 Y16.19%
EPS Next 2Y13.95%
EPS Next 3Y12.54%
EPS Next 5Y10.88%
Revenue Next Year9.85%
Revenue Next 2Y7.19%
Revenue Next 3Y6.05%
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
- With a Price/Earnings ratio of 22.70, GDX is valued on the expensive side.
- Based on the Price/Earnings ratio, GDX is valued cheaper than 94.34% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GDX to the average of the S&P500 Index (28.82), we can say GDX is valued slightly cheaper.
- GDX is valuated rather expensively with a Price/Forward Earnings ratio of 19.76.
- GDX's Price/Forward Earnings ratio is rather cheap when compared to the industry. GDX is cheaper than 86.79% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, GDX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 19.76 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GDX is valued cheaper than 81.13% of the companies in the same industry.
- GDX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GDX is cheaper than 96.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.7 | ||
| EV/EBITDA | 17.08 |
4.3 Compensation for Growth
- GDX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- GDX has a very decent profitability rating, which may justify a higher PE ratio.
- GDX's earnings are expected to grow with 12.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.4
PEG (5Y)8.63
EPS Next 2Y13.95%
EPS Next 3Y12.54%
5. Dividend
5.1 Amount
- GDX has a Yearly Dividend Yield of 1.64%.
- Compared to an average industry Dividend Yield of 0.74, GDX pays a better dividend. On top of this GDX pays more dividend than 94.34% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
- The dividend of GDX is nicely growing with an annual growth rate of 7.16%!
Dividend Growth(5Y)7.16%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- GDX pays out 37.41% of its income as dividend. This is a sustainable payout ratio.
- The dividend of GDX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.41%
EPS Next 2Y13.95%
EPS Next 3Y12.54%
GENERAL DYNAMICS CORP / GDX.DE FAQ
Can you provide the ChartMill fundamental rating for GENERAL DYNAMICS CORP?
ChartMill assigns a fundamental rating of 6 / 10 to GDX.DE.
Can you provide the valuation status for GENERAL DYNAMICS CORP?
ChartMill assigns a valuation rating of 6 / 10 to GENERAL DYNAMICS CORP (GDX.DE). This can be considered as Fairly Valued.
How profitable is GENERAL DYNAMICS CORP (GDX.DE) stock?
GENERAL DYNAMICS CORP (GDX.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of GENERAL DYNAMICS CORP (GDX.DE) stock?
The Price/Earnings (PE) ratio for GENERAL DYNAMICS CORP (GDX.DE) is 22.7 and the Price/Book (PB) ratio is 3.87.
What is the expected EPS growth for GENERAL DYNAMICS CORP (GDX.DE) stock?
The Earnings per Share (EPS) of GENERAL DYNAMICS CORP (GDX.DE) is expected to grow by 16.19% in the next year.