NYSE:GD

Stock Analysis Report

Executive Summary

General Dynamics Corporation operates as an aerospace and defense company worldwide.

Snowflake

Fundamentals

Established dividend payer and fair value.


Similar Companies

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

0.1%

NYSE:GD

-1.3%

US Aerospace & Defense

-0.7%

US Market


1 Year Return

-4.8%

NYSE:GD

4.3%

US Aerospace & Defense

-0.5%

US Market

GD underperformed the Aerospace & Defense industry which returned 4.4% over the past year.

GD underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

GDIndustryMarket
7 Day0.1%-1.3%-0.7%
30 Day0.3%1.7%-3.0%
90 Day8.9%5.3%0.9%
1 Year-2.7%-4.8%6.4%4.3%1.7%-0.5%
3 Year28.1%21.0%50.1%41.9%39.5%30.4%
5 Year64.2%48.8%90.2%72.1%54.1%37.0%

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

Valuation

Is General Dynamics undervalued based on future cash flows and its price relative to the stock market?

27%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

General Dynamics's share price is below the future cash flow value, and at a moderate discount (> 20%).

General Dynamics's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

General Dynamics is good value based on earnings compared to the US Aerospace & Defense industry average.

General Dynamics is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

General Dynamics is poor value based on expected growth next year.


Price Based on Value of Assets

General Dynamics is overvalued based on assets compared to the US Aerospace & Defense industry average.


Next Steps

Future Growth

How is General Dynamics expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

General Dynamics's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

General Dynamics's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

General Dynamics's revenue growth is positive but not above the United States of America market average.

General Dynamics's earnings growth is positive but not above the United States of America market average.

General Dynamics's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

General Dynamics is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

General Dynamics's year on year earnings growth rate has been positive over the past 5 years.

General Dynamics's 1-year earnings growth exceeds its 5-year average (11.4% vs 3.9%)

General Dynamics's earnings growth has not exceeded the US Aerospace & Defense industry average in the past year (11.4% vs 15.8%).


Return on Equity

Whilst General Dynamics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

General Dynamics used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

General Dynamics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is General Dynamics's financial position?


Financial Position Analysis

General Dynamics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

General Dynamics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

General Dynamics's level of debt (108.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (29.8% vs 108.2% today).

Debt is not well covered by operating cash flow (16.6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

What is General Dynamics's current dividend yield, its reliability and sustainability?

2.39%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase General Dynamics before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

General Dynamics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

General Dynamics's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

What is the CEO of General Dynamics's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Phebe Novakovic (61yo)

6.6yrs

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

Phebe's remuneration is higher than average for companies of similar size in United States of America.

Phebe's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.0yrs

Average Tenure

60yo

Average Age

The tenure for the General Dynamics management team is about average.


Board Age and Tenure

5.5yrs

Average Tenure

65yo

Average Age

The tenure for the General Dynamics board of directors is about average.


Insider Trading

More shares have been bought than sold by General Dynamics individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$28,52413 Aug 19
Mark Burns
EntityIndividual
Shares158.86
Max PriceUS$179.56
SellUS$398,44806 Feb 19
Christopher Brady
EntityIndividual
Shares2,327
Max PriceUS$171.23
BuyUS$100,58511 Dec 18
Catherine Reynolds
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares600
Max PriceUS$167.64
BuyUS$509,61230 Oct 18
Mark Malcolm
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$169.87

Ownership Breakdown


Management Team

  • Phebe Novakovic (61yo)

    Chairman & CEO

    • Tenure: 6.6yrs
    • Compensation: US$20.72m
  • Dan Clare (60yo)

    Senior Vice President

    • Tenure: 0.0yrs
  • Howard Rubel

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Greg Gallopoulos (59yo)

    Senior VP

    • Tenure: 9.6yrs
  • Chris Marzilli (60yo)

    Executive VP of Information Technology & Mission Systems Segments

    • Tenure: 0.6yrs
  • Tom Kirchmaier (62yo)

    Senior Vice President of Planning

    • Tenure: 0.3yrs
  • Mark Roualet (60yo)

    Executive Vice President of Combat Systems

    • Tenure: 6.4yrs
    • Compensation: US$5.38m
  • Jason Aiken (47yo)

    Senior VP & CFO

    • Tenure: 5.6yrs
    • Compensation: US$5.47m
  • Marguerite Gilliland (44yo)

    Senior Vice President

    • Tenure: 4.3yrs
  • Kim Kuryea (52yo)

    Senior Vice President of Human Resources & Administration

    • Tenure: 2.3yrs

Board Members

  • Bill Osborn (72yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$325.80k
  • Jim Crown (65yo)

    Lead Director

    • Tenure: 9.3yrs
    • Compensation: US$348.86k
  • Rudy deLeon (66yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$327.86k
  • Phebe Novakovic (61yo)

    Chairman & CEO

    • Tenure: 6.6yrs
    • Compensation: US$20.72m
  • Les Lyles (72yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$305.80k
  • Laura Schumacher (56yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$297.86k
  • Catherine Reynolds (61yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$301.86k
  • Mark Malcolm (65yo)

    Independent Director

    • Tenure: 4.0yrs
    • Compensation: US$323.86k
  • Jim Mattis (68yo)

    Director

    • Tenure: 0.0yrs
  • Peter Wall (63yo)

    Independent Director

    • Tenure: 3.0yrs
    • 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$53.122b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
GDXDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
GD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
0IUCLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
GDBR34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 COM STK USD1BRBRLAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:39
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.