General Dynamics
Market Cap
US$50.6b
Last Updated
2019/10/21 23:36 UTC
Data Sources
Company Financials +
Executive Summary
General Dynamics Corporation operates as an aerospace and defense company worldwide.
Snowflake
Fundamentals
Established dividend payer with proven track record.
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Share Price & News
How has General Dynamics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-2.0%
GD
-1.4%
US Aerospace & Defense
1.0%
US Market
1 Year Return
-7.7%
GD
7.5%
US Aerospace & Defense
8.0%
US Market
Return vs Industry: GD underperformed the US Aerospace & Defense industry which returned 7.5% over the past year.
Return vs Market: GD underperformed the US Market which returned 8% over the past year.
Shareholder returns
| GD | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.0% | -1.4% | 1.0% |
| 30 Day | -6.4% | -2.8% | -0.07% |
| 90 Day | -5.7% | 1.6% | -1.0% |
| 1 Year | -5.6%-7.7% | 9.6%7.5% | 10.4%8.0% |
| 3 Year | 22.8%15.9% | 59.1%50.3% | 46.2%36.7% |
| 5 Year | 45.6%31.8% | 92.0%73.6% | 64.3%46.2% |
Price Volatility Vs. Market
How volatile is General Dynamics's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Why You Might Be Interested In General Dynamics Corporation (NYSE:GD) For Its Upcoming Dividend2 weeks ago | Simply Wall St
Does General Dynamics (NYSE:GD) Have A Healthy Balance Sheet?3 weeks ago | Simply Wall St
How Much is General Dynamics Corporation's (NYSE:GD) CEO Getting Paid?Valuation
Is General Dynamics undervalued compared to its fair value and its price relative to the market?
25.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GD ($175.45) is trading below our estimate of fair value ($233.84)
Significantly Below Fair Value: GD is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: GD is good value based on its PE Ratio (15.4x) compared to the Aerospace & Defense industry average (21.6x).
PE vs Market: GD is good value based on its PE Ratio (15.4x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
PEG Ratio: GD is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: GD is overvalued based on its PB Ratio (3.9x) compared to the US Aerospace & Defense industry average (2.5x).
Next Steps
Future Growth
How is General Dynamics forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
7.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GD's forecast earnings growth (7.9% per year) is above the savings rate (2.7%).
Earnings vs Market: GD's earnings (7.9% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: GD's earnings are forecast to grow, but not significantly.
Revenue vs Market: GD's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: GD's revenue (4.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GD's Return on Equity is forecast to be high in 3 years time (25.9%)
Next Steps
Past Performance
How has General Dynamics performed over the past 5 years?
3.9%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: GD's earnings have grown by 3.9% per year over the past 5 years.
Accelerating Growth: GD's earnings growth over the past year (11.4%) exceeds its 5-year average (3.9% per year).
Earnings vs Industry: GD earnings growth over the past year (11.4%) exceeded the Aerospace & Defense industry 10.5%.
Return on Equity
High ROE: Whilst GD's Return on Equity (25.81%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: GD has a higher Return on Assets than the Aerospace & Defense industry average last year.
Return on Capital Employed
ROCE Improving: GD's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is General Dynamics's financial position?
Financial Position Analysis
Short Term Liabilities: GD's short term assets ($19.6B) exceeds its short term liabilities ($18.0B)
Long Term Liabilities: GD's short term assets (19.6B) exceeds its long term liabilities (17.2B)
Debt to Equity History and Analysis
Debt Level: GD's debt to equity ratio (108.2%) is considered high
Reducing Debt: GD's debt to equity ratio has increased from 29.8% to 108.2% over the past 5 years.
Debt Coverage: GD's debt is not well covered by operating cash flow (16.6%).
Interest Coverage: GD's interest payments on its debt are well covered by EBIT (9.8x coverage).
Balance Sheet
Inventory Level: GD has a high level of physical assets or inventory.
Debt Coverage by Assets: GD's debt is covered by short term assets (assets are 1.403440x debt).
Next Steps
Dividend
What is General Dynamics's current dividend yield, its reliability and sustainability?
2.33%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: GD's dividend (2.33%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: GD's dividend (2.33%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stable Dividend: GD's dividends per share have been stable in the past 10 years.
Growing Dividend: GD's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.2%), GD's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GD's dividends in 3 years are forecast to be well covered by earnings (33.3% payout ratio).
Next Steps
Management
What is the CEO of General Dynamics's salary, the management and board of directors tenure and is there insider trading?
5.1yrs
Average management tenure
CEO
Phebe Novakovic (61yo)
6.8yrs
Tenure
US$20,720,254
Compensation
Ms. Phebe N. Novakovic has been the Chairman and Chief Executive Officer of General Dynamics Corporation since January 1, 2013 and has been its Director since May 2012. Ms. Novakovic served as the Presiden ...
CEO Compensation Analysis
Compensation vs. Market: Phebe's total compensation ($USD20.72M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Phebe's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.1yrs
Average Tenure
60yo
Average Age
Experienced Management: GD's management team is seasoned and experienced (5.1 years average tenure).
Board Age and Tenure
5.4yrs
Average Tenure
65yo
Average Age
Experienced Board: GD's board of directors are considered experienced (5.4 years average tenure).
Insider Trading
Insider Buying: GD insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 158.86 |
| Max Price | US$179.56 |
| Entity | Individual |
| Shares | 2,327 |
| Max Price | US$171.23 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 600 |
| Max Price | US$167.64 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,000 |
| Max Price | US$169.87 |
Ownership Breakdown
Management Team
Phebe Novakovic (61yo)
Chairman & CEO
- Tenure: 6.8yrs
- Compensation: US$20.72m
Dan Clare (60yo)
Senior Vice President
- Tenure: 0yrs
Howard Rubel
Vice President of Investor Relations
- Tenure: 0yrs
Greg Gallopoulos (59yo)
Senior VP
- Tenure: 9.8yrs
Chris Marzilli (60yo)
Executive VP of Information Technology & Mission Systems Segments
- Tenure: 0.8yrs
Tom Kirchmaier (62yo)
Senior Vice President of Planning
- Tenure: 0.5yrs
Mark Roualet (60yo)
Executive Vice President of Combat Systems
- Tenure: 6.6yrs
- Compensation: US$5.38m
Jason Aiken (47yo)
Senior VP & CFO
- Tenure: 5.8yrs
- Compensation: US$5.47m
Marguerite Gilliland (44yo)
Senior Vice President
- Tenure: 4.5yrs
Kim Kuryea (52yo)
Senior Vice President of Human Resources & Administration
- Tenure: 2.5yrs
Board Members
Bill Osborn (72yo)
Independent Director
- Tenure: 9.8yrs
- Compensation: US$325.80k
Jim Crown (65yo)
Lead Director
- Tenure: 9.4yrs
- Compensation: US$348.86k
Rudy deLeon (66yo)
Independent Director
- Tenure: 5.1yrs
- Compensation: US$327.86k
Phebe Novakovic (61yo)
Chairman & CEO
- Tenure: 6.8yrs
- Compensation: US$20.72m
Les Lyles (72yo)
Independent Director
- Tenure: 15.8yrs
- Compensation: US$305.80k
Laura Schumacher (56yo)
Independent Director
- Tenure: 5.7yrs
- Compensation: US$297.86k
Catherine Reynolds (61yo)
Independent Director
- Tenure: 2.4yrs
- Compensation: US$301.86k
Mark Malcolm (65yo)
Independent Director
- Tenure: 4.2yrs
- Compensation: US$323.86k
Jim Mattis (68yo)
Director
- Tenure: 0.2yrs
Peter Wall (63yo)
Independent Director
- Tenure: 3.2yrs
- Compensation: US$333.86k
Company Information
General Dynamics Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: General Dynamics Corporation
- Ticker: GD
- Exchange: NYSE
- Founded: 1952
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$50.557b
- Shares outstanding: 288.16m
- Website: https://www.gd.com
Number of Employees
Location
- General Dynamics Corporation
- 2941 Fairview Park Drive
- Suite 100
- Falls Church
- Virginia
- 22042
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GD | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| GDX | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| GD * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| 0IUC | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| GDBR34 | BOVESPA (Bolsa de Valores de Sao Paulo) | EACH BDR REPR 1 COM STK USD1 | BR | BRL | Aug 2015 |
Biography
General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates in five segments: Aerospace, Combat Systems, Information Technology, Mission Systems, and Marine Systems. Th ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/21 23:36 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.