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General Dynamics

NYSE:GD
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GD
NYSE
$49B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

General Dynamics Corporation operates as an aerospace and defense company worldwide. The last earnings update was 53 days ago. More info.


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GD Share Price and Events
7 Day Returns
-1.6%
NYSE:GD
-2.3%
US Aerospace & Defense
0.5%
US Market
1 Year Returns
-12.5%
NYSE:GD
0.8%
US Aerospace & Defense
0.8%
US Market
GD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
General Dynamics (GD) -1.6% 2.9% -0.2% -12.5% 23.2% 43.2%
US Aerospace & Defense -2.3% 0.3% 6.8% 0.8% 41.6% 58.8%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • GD underperformed the Aerospace & Defense industry which returned 0.8% over the past year.
  • GD underperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
GD
Industry
5yr Volatility vs Market

GD Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of General Dynamics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for General Dynamics.

NYSE:GD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.875 (1 + (1- 21%) (30.26%))
1.056
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.056 * 5.96%)
9.02%

Discounted Cash Flow Calculation for NYSE:GD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for General Dynamics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.02%)
2019 3,683.22 Analyst x9 3,378.37
2020 3,763.22 Analyst x9 3,166.06
2021 4,056.60 Analyst x5 3,130.41
2022 4,400.00 Analyst x3 3,114.38
2023 4,640.00 Analyst x2 3,012.43
2024 4,850.58 Est @ 4.54% 2,888.49
2025 5,044.40 Est @ 4% 2,755.29
2026 5,226.80 Est @ 3.62% 2,618.63
2027 5,401.91 Est @ 3.35% 2,482.36
2028 5,572.84 Est @ 3.16% 2,348.95
Present value of next 10 years cash flows $28,895.36
NYSE:GD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $5,572.84 × (1 + 2.73%) ÷ (9.02% – 2.73%)
$90,965.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $90,965.77 ÷ (1 + 9.02%)10
$38,342.00
NYSE:GD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $28,895.36 + $38,342.00
$67,237.36
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $67,237.36 / 288.19
$233.31
NYSE:GD Discount to Share Price
Calculation Result
Value per share (USD) From above. $233.31
Current discount Discount to share price of $171.25
= -1 x ($171.25 - $233.31) / $233.31
26.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price General Dynamics is available for.
Intrinsic value
27%
Share price is $171.25 vs Future cash flow value of $233.31
Current Discount Checks
For General Dynamics to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for General Dynamics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are General Dynamics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $11.27
NYSE:GD Share Price ** NYSE (2019-06-14) in USD $171.25
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 38 Publicly-Listed Aerospace & Defense Companies 22.79x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of General Dynamics.

NYSE:GD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GD Share Price ÷ EPS (both in USD)

= 171.25 ÷ 11.27

15.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does General Dynamics's expected growth come at a high price?
Raw Data
NYSE:GD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
8%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 33 Publicly-Listed Aerospace & Defense Companies 1.92x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:GD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.19x ÷ 8%

1.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • General Dynamics is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on General Dynamics's assets?
Raw Data
NYSE:GD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $42.45
NYSE:GD Share Price * NYSE (2019-06-14) in USD $171.25
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 55 Publicly-Listed Aerospace & Defense Companies 2.69x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:GD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GD Share Price ÷ Book Value per Share (both in USD)

= 171.25 ÷ 42.45

4.03x

* Primary Listing of General Dynamics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • General Dynamics is overvalued based on assets compared to the US Aerospace & Defense industry average.
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Value checks
We assess General Dynamics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. General Dynamics has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GD Future Performance

 How is General Dynamics expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is General Dynamics expected to grow at an attractive rate?
  • General Dynamics's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • General Dynamics's earnings growth is positive but not above the United States of America market average.
  • General Dynamics's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GD Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 8%
NYSE:GD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 4.3%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.6%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 46,499 5,359 4,711 2
2022-12-31 43,994 5,024 4,370 3
2021-12-31 42,335 4,967 4,040 9
2020-12-31 40,868 4,765 3,727 17
2019-12-31 38,864 4,534 3,403 16
NYSE:GD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 37,919 2,826 3,304
2018-12-31 36,193 3,128 3,358
2018-09-30 34,092 3,049 3,085
2018-07-01 32,578 3,128 2,985
2018-04-01 31,067 2,813 2,948
2017-12-31 30,973 3,836 2,912
2017-10-01 30,350 2,670 2,856
2017-07-02 30,427 2,298 2,823
2017-04-02 30,526 2,195 2,788
2016-12-31 30,561 2,109 2,679
2016-10-02 30,716 1,653 2,863
2016-07-03 31,053 1,986 2,865
2016-04-03 31,161 2,301 2,903

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • General Dynamics's earnings are expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
  • General Dynamics's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from General Dynamics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 16.58 16.58 16.58 1.00
2022-12-31 15.08 15.08 15.08 1.00
2021-12-31 13.98 14.70 13.29 6.00
2020-12-31 12.97 13.56 12.32 12.00
2019-12-31 11.76 11.85 11.66 10.00
NYSE:GD Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 11.27
2018-12-31 11.37
2018-09-30 10.41
2018-07-01 10.05
2018-04-01 9.90
2017-12-31 9.73
2017-10-01 9.50
2017-07-02 9.35
2017-04-02 9.20
2016-12-31 8.79
2016-10-02 9.31
2016-07-03 9.22
2016-04-03 9.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • General Dynamics is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess General Dynamics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
General Dynamics has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GD Past Performance

  How has General Dynamics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare General Dynamics's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (12.1% vs 3.9%)
  • General Dynamics's earnings growth has not exceeded the US Aerospace & Defense industry average in the past year (12.1% vs 31.1%).
Earnings and Revenue History
General Dynamics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from General Dynamics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 37,919.00 3,304.00 2,277.00
2018-12-31 36,193.00 3,358.00 2,232.00
2018-09-30 34,092.00 3,085.00 2,291.00
2018-07-01 32,578.00 2,985.00 2,242.00
2018-04-01 31,067.00 2,948.00 2,147.00
2017-12-31 30,973.00 2,912.00 2,065.00
2017-10-01 30,350.00 2,856.00 1,974.00
2017-07-02 30,427.00 2,823.00 1,942.00
2017-04-02 30,526.00 2,788.00 1,933.00
2016-12-31 30,561.00 2,679.00 1,931.00
2016-10-02 30,716.00 2,863.00 1,923.00
2016-07-03 31,053.00 2,865.00 1,928.00
2016-04-03 31,161.00 2,903.00 1,910.00
2015-12-31 31,781.00 3,036.00 1,937.00
2015-10-04 32,022.00 2,938.00 1,975.00
2015-07-05 31,779.00 2,899.00 1,977.00
2015-04-05 31,371.00 2,793.00 1,996.00
2014-12-31 30,852.00 2,673.00 1,955.00
2014-09-28 30,537.00 2,560.00 1,959.00
2014-06-29 30,521.00 2,518.00 1,978.00
2014-03-30 30,881.00 2,512.00 2,006.00
2013-12-31 30,930.00 2,486.00 2,039.00
2013-09-29 30,961.00 -268.00 2,114.00
2013-06-30 31,160.00 -320.00 2,127.00
2013-03-31 31,248.00 -326.00 2,138.00
2012-12-31 30,992.00 -381.00 2,221.00
2012-09-30 32,582.00 2,401.00 2,094.00
2012-07-01 32,501.00 2,466.00 2,076.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • General Dynamics used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • General Dynamics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess General Dynamics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
General Dynamics has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GD Health

 How is General Dynamics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up General Dynamics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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 long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of General Dynamics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from General Dynamics Company Filings, last reported 2 months ago.

NYSE:GD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 12,234.00 14,932.00 673.00
2018-12-31 11,732.00 12,417.00 963.00
2018-09-30 12,755.00 13,081.00 1,010.00
2018-07-01 11,994.00 14,278.00 1,862.00
2018-04-01 11,774.00 6,479.00 4,332.00
2017-12-31 11,435.00 3,982.00 2,983.00
2017-10-01 11,564.00 4,882.00 2,722.00
2017-07-02 10,952.00 3,978.00 1,856.00
2017-04-02 10,583.00 3,889.00 2,168.00
2016-12-31 10,301.00 3,888.00 2,334.00
2016-10-02 11,317.00 3,886.00 2,303.00
2016-07-03 10,995.00 3,436.00 1,899.00
2016-04-03 10,582.00 3,400.00 1,907.00
2015-12-31 10,738.00 3,399.00 2,785.00
2015-10-04 10,734.00 3,413.00 3,372.00
2015-07-05 11,276.00 3,413.00 4,032.00
2015-04-05 11,520.00 3,411.00 4,412.00
2014-12-31 11,829.00 3,893.00 4,888.00
2014-09-28 13,010.00 3,911.00 5,105.00
2014-06-29 13,119.00 3,910.00 3,841.00
2014-03-30 13,690.00 3,911.00 4,296.00
2013-12-31 14,501.00 3,909.00 5,301.00
2013-09-29 12,605.00 3,936.00 4,065.00
2013-06-30 11,756.00 3,907.00 3,757.00
2013-03-31 11,582.00 3,909.00 3,745.00
2012-12-31 11,390.00 3,909.00 3,296.00
2012-09-30 14,272.00 3,925.00 2,874.00
2012-07-01 13,662.00 3,933.00 2,540.00
  • General Dynamics's level of debt (110.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (28.6% vs 110.7% today).
  • Debt is well covered by operating cash flow (20.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.1x coverage).
X
Financial health checks
We assess General Dynamics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. General Dynamics has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GD Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.38%
Current annual income from General Dynamics dividends. Estimated to be 2.52% next year.
If you bought $2,000 of General Dynamics shares you are expected to receive $48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • General Dynamics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • General Dynamics's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

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

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 5.26 1.00
2021-12-31 4.72 7.00
2020-12-31 4.35 11.00
2019-12-31 3.98 12.00
NYSE:GD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-05 4.080 2.375
2019-03-06 4.080 2.396
2018-12-06 3.720 2.236
2018-08-01 3.720 1.958
2018-06-06 3.720 1.918
2018-03-07 3.720 1.754
2017-12-06 3.360 1.593
2017-08-02 3.360 1.654
2017-06-07 3.360 1.677
2017-03-01 3.360 1.745
2016-12-07 3.040 1.693
2016-08-03 3.040 1.950
2016-07-27 3.040 2.059
2016-03-02 3.040 2.195
2015-12-02 2.760 2.050
2015-08-05 2.760 1.917
2015-06-03 2.760 1.910
2015-03-04 2.760 2.023
2014-12-03 2.480 1.783
2014-08-06 2.480 1.927
2014-06-04 2.480 2.101
2014-03-05 2.480 2.241
2013-12-04 2.240 2.280
2013-08-07 2.240 2.571
2013-06-05 2.240 2.763
2013-03-06 2.240 3.112
2012-12-05 2.040 2.979
2012-08-01 2.040 3.104
2012-06-07 2.040 3.180
2012-03-07 2.040 2.980
2011-12-07 1.880 2.725
2011-08-03 1.880 3.047
2011-06-01 1.880 2.635
2011-03-02 1.880 2.540
2010-12-01 1.680 2.310
2010-08-04 1.680 2.655
2010-06-02 1.680 2.696
2010-03-03 1.680 2.270
2009-12-02 1.520 2.194
2009-08-05 1.520 2.413

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of General Dynamics's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess General Dynamics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can General Dynamics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. General Dynamics has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GD Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Phebe Novakovic
COMPENSATION $20,720,254
AGE 60
TENURE AS CEO 6.4 years
CEO Bio

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 President and Chief Operating Officer at General Dynamics Corporation from May 2, 2012 to December 2012. She served as an Executive Vice President of General Dynamics Marine Systems, Inc., from May 01, 2010 to May 2012. Ms. Novakovic served as Senior Vice President of Planning & Development at General Dynamics Corporation and General Dynamics Land Systems Inc. from July 2005 to May 1, 2010. She served as Vice President of Strategic Planning at General Dynamics Corporation from October 2002 to June 30, 2005. She served as Staff Vice President of General Dynamics Corporation from May 2002 to October 2002; Director of Strategic Planning and Development March 2001 to May 2002 and Special Assistant to the Secretary and Deputy Secretary of Defense from July 1, 1997 to March 2001 and had been a Deputy Associate Director of the Office of Management and Budget. Ms. Novakovic serves as a Director of Abbott Diabetes Care, Inc. She has been an Independent Director at Abbott Laboratories since 2010.

CEO Compensation
  • Phebe's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Phebe's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the General Dynamics management team in years:

5.8
Average Tenure
59
Average Age
  • The average tenure for the General Dynamics management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Phebe Novakovic

TITLE
Chairman & CEO
COMPENSATION
$21M
AGE
60
TENURE
6.4 yrs

Jason Aiken

TITLE
Senior VP & CFO
COMPENSATION
$5M
AGE
46
TENURE
5.4 yrs

John Casey

TITLE
Executive Vice President of Marine Systems
COMPENSATION
$5M
AGE
63
TENURE
7.1 yrs

Mark Roualet

TITLE
Executive Vice President of Combat Systems
COMPENSATION
$5M
AGE
59
TENURE
6.3 yrs

Kim Kuryea

TITLE
Senior Vice President of Human Resources & Administration
AGE
51
TENURE
2.2 yrs

Howard Rubel

TITLE
Vice President of Investor Relations

Greg Gallopoulos

TITLE
Senior VP
AGE
58
TENURE
9.4 yrs

Tom Kirchmaier

TITLE
Senior Vice President of Planning
AGE
61
TENURE
0.2 yrs

Chris Marzilli

TITLE
Executive VP of Information Technology & Mission Systems Segments
AGE
59
TENURE
0.4 yrs

Dan Clare

TITLE
Senior Vice President
AGE
59
Board of Directors Tenure

Average tenure and age of the General Dynamics board of directors in years:

5
Average Tenure
63
Average Age
  • The tenure for the General Dynamics board of directors is about average.
Board of Directors

Phebe Novakovic

TITLE
Chairman & CEO
COMPENSATION
$21M
AGE
60
TENURE
6.4 yrs

Jim Crown

TITLE
Lead Director
COMPENSATION
$349K
AGE
64
TENURE
9.1 yrs

Bill Osborn

TITLE
Independent Director
COMPENSATION
$326K
AGE
71
TENURE
9.5 yrs

Rudy deLeon

TITLE
Independent Director
COMPENSATION
$328K
AGE
65
TENURE
4.8 yrs

Mark Malcolm

TITLE
Independent Director
COMPENSATION
$324K
AGE
64
TENURE
3.8 yrs

Les Lyles

TITLE
Independent Director
COMPENSATION
$306K
AGE
71
TENURE
15.5 yrs

Laura Schumacher

TITLE
Independent Director
COMPENSATION
$298K
AGE
55
TENURE
5.3 yrs

Peter Wall

TITLE
Independent Director
COMPENSATION
$334K
AGE
62
TENURE
2.8 yrs

Catherine Reynolds

TITLE
Independent Director
COMPENSATION
$302K
AGE
60
TENURE
2.1 yrs

Ward Nye

TITLE
Independent Director
COMPENSATION
$155K
AGE
55
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Feb 19 Sell Christopher Brady Individual 04. Feb 19 04. Feb 19 -2,327 $171.23 $-398,448
11. Dec 18 Buy Catherine Reynolds Individual 07. Dec 18 07. Dec 18 600 $167.64 $100,585
30. Oct 18 Buy Mark Malcolm Individual 26. Oct 18 26. Oct 18 3,000 $169.87 $509,612
X
Management checks
We assess General Dynamics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. General Dynamics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GD News

Simply Wall St News

Is General Dynamics Corporation's (NYSE:GD) CEO Paid Enough Relative To Peers?

Our data indicates that General Dynamics Corporation is worth US$50b, and total annual CEO compensation is US$21m. … Thus we can conclude that Phebe Novakovic receives more in total compensation than the median of a group of large companies in the same market as General Dynamics Corporation. … We compared the total CEO remuneration paid by General Dynamics Corporation, and compared it to remuneration at a group of other large companies.

Simply Wall St -

What Should You Know About General Dynamics Corporation's (NYSE:GD) Future?

Looking at General Dynamics Corporation's (NYSE:GD) earnings update in March 2019, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 5.5% next year relative to the past 5-year average growth rate of 3.9%. … In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for General Dynamics in the longer term. … NYSE:GD Past and Future Earnings, June 3rd 2019 This results in an annual growth rate of 8.0% based on the most recent earnings level of US$3.4b to the final forecast of US$4.2b by 2022.

Simply Wall St -

Does General Dynamics Corporation's (NYSE:GD) 12% Earnings Growth Make It An Outperformer?

See our latest analysis for General Dynamics Could GD beat the long-term trend and outperform its industry? … Though General Dynamics's past data is helpful, it is only one aspect of my investment thesis. … You should continue to research General Dynamics to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for GD’s future growth?

Simply Wall St -

What Makes General Dynamics Corporation (NYSE:GD) A Great Dividend Stock?

Could General Dynamics Corporation (NYSE:GD) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. A 2.4% yield is nothing to get excited about, but investors probably think the long payment history suggests General Dynamics has some staying power. The company also bought back stock during the year, equivalent to approximately 3.1% of the company's market capitalisation at the time. Some simple analysis can reduce the risk of holding General Dynamics for its dividend, and we'll focus on the most important aspects below. Click the interactive chart for our full dividend analysis NYSE:GD Historical Dividend Yield, May 18th 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 34% of General Dynamics's profits were paid out as dividends in the last 12 months. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. Plus, there is room to increase the payout ratio over time. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. The company paid out 52% of its free cash flow, which is not bad per se, but does start to limit the amount of cash General Dynamics has available to meet other needs. Is General Dynamics's Balance Sheet Risky? As General Dynamics has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. … General Dynamics has grown its earnings per share at 9.7% per annum over the past five years.

Simply Wall St -

Who Has Been Buying General Dynamics Corporation (NYSE:GD) Shares?

So before you buy or sell General Dynamics Corporation (NYSE:GD), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for General Dynamics The Last 12 Months Of Insider Transactions At General Dynamics Over the last year, we can see that the biggest insider purchase was by Independent Director Mark Malcolm for US$510k worth of shares, at about US$170 per share. … With high insider ownership and encouraging transactions, it seems like General Dynamics insiders think the business has merit.

Simply Wall St -

Why We Like General Dynamics Corporation’s (NYSE:GD) 14% Return On Capital Employed

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

What Investors Should Know About General Dynamics Corporation's (NYSE:GD) Financial Strength

Let’s take a look at General Dynamics’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further … View our latest analysis for General Dynamics

Simply Wall St -

Estimating The Fair Value Of General Dynamics Corporation (NYSE:GD)

I will use the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

General Dynamics Corporation (NYSE:GD): Ex-Dividend Is In 2 Days

On the 10 May 2019, General Dynamics Corporation (NYSE:GD) will be paying shareholders an upcoming dividend amount of US$1.02 per share. … Is this future income a persuasive enough catalyst for investors to think about General Dynamics as an investment today? … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?

Simply Wall St -

Read This Before You Buy General Dynamics Corporation (NYSE:GD) Because Of Its P/E Ratio

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … General Dynamics has a price to earnings ratio of 14.88, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

GD Company Info

Description

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. The Aerospace segment designs, manufactures, and supports business-jet aircraft; and offers business-aviation services, including maintenance, fixed-base operation, government fleet, aircraft management, charter, and staffing services, as well as integrated aviation solutions. The Combat Systems segment engages in the design, development, production, modernization, and sustainment of combat vehicles, weapons systems, and munitions. This segment offers wheeled combat and tactical vehicles; main battle tanks and tracked combat vehicles; weapons systems, armaments, and munitions; and maintenance, logistics support, and sustainment services. The Information Technology segment provides information technology (IT), IT infrastructure modernization, and professional services, as well as cloud, cyber, software development, systems engineering, and data analytics services and solutions. The Mission Systems segment offers mission-critical C4ISR products and systems, such as space, intelligence, and cyber systems; ground systems and products; and naval, air, and electronic systems. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary and combat-logistics ships for the United States Navy and Jones Act ships for commercial customers. This segment provides nuclear-powered submarines; surface combatants; auxiliary and combat-logistics ships; commercial product carriers and containerships; design and engineering support services; and maintenance, modernization, and lifecycle support services, as well as repair services for navy ships. The company was incorporated in 1952 and is headquartered in Falls Church, Virginia.

Details
Name: General Dynamics Corporation
GD
Exchange: NYSE
Founded: 1952
$49,351,693,066
288,185,069
Website: http://www.gd.com
Address: General Dynamics Corporation
2941 Fairview Park Drive,
Suite 100,
Falls Church,
Virginia, 22042,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GD Common Stock New York Stock Exchange US USD 02. Jan 1968
DB GDX Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0IUC Common Stock London Stock Exchange GB USD 02. Jan 1968
BMV GD * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BOVESPA GDBR34 EACH BDR REPR 1 COM STK USD1 Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2015
Number of employees
Current staff
Staff numbers
105,600
General Dynamics employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:36
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/04/24
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.