General Dynamics Corporation
General Dynamics Corporation Fundamental Analysis
General Dynamics Corporation (GD) shows moderate financial fundamentals with a PE ratio of 22.41, profit margin of 8.01%, and ROE of 17.57%. The company generates $52.6B in annual revenue with strong year-over-year growth of 12.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze GD's fundamental strength across five key dimensions:
Efficiency Score
WeakGD struggles to generate sufficient returns from assets.
Valuation Score
ModerateGD shows balanced valuation metrics.
Growth Score
ExcellentGD delivers strong and consistent growth momentum.
Financial Health Score
ExcellentGD maintains a strong and stable balance sheet.
Profitability Score
ModerateGD maintains healthy but balanced margins.
Key Financial Metrics
Is GD Expensive or Cheap?
P/E Ratio
GD trades at 22.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GD's PEG of 116.63 indicates potential overvaluation.
Price to Book
The market values General Dynamics Corporation at 3.68 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.28 times EBITDA. This signals the market has high growth expectations.
How Well Does GD Make Money?
Net Profit Margin
For every $100 in sales, General Dynamics Corporation keeps $8.01 as profit after all expenses.
Operating Margin
Core operations generate 10.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.57 in profit for every $100 of shareholder equity.
ROA
General Dynamics Corporation generates $7.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
General Dynamics Corporation generates limited operating cash flow of $5.13B, signaling weaker underlying cash strength.
Free Cash Flow
General Dynamics Corporation produces free cash flow of $3.97B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $14.67 in free cash annually.
FCF Yield
GD converts 4.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
116.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How GD Stacks Against Its Sector Peers
| Metric | GD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.41 | 26.49 | Better (Cheaper) |
| ROE | 17.57% | 1307.00% | Weak |
| Net Margin | 8.01% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.38 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.44 | 10.48 | Neutral |
| ROA | 7.35% | -1549793.00% (disorted) | Weak |
GD outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews General Dynamics Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.98%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
12.78%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
43.31%
Industry Style: Cyclical, Value, Infrastructure
High Growth