GENERAL DYNAMICS CORP's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. GENERAL DYNAMICS CORP has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 15.85% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||7784.0||7265.0|
|Net Income ($mil)||716.0||595.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||4412.0||4296.0|
|Total Assets ($mil)||34385.0||34382.0|
|Total Debt ($mil)||3411.0||3911.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||21.25||20.51|
|Return on Assets||7.71||6.92|
|Return on Equity||24.24||18.34|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||328.73||342.86|
|Div / share||0.62||0.56|
|Book value / share||35.04||39.93|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1420465.0||1464815.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 20.68 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 21.18. Conducting a second comparison, its price-to-book ratio of 4.13 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 7.91. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, GENERAL DYNAMICS CORP proves to trade at a discount to investment alternatives within the industry.
|GD 17.53||Peers 20.68||GD 11.72||Peers 14.67|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
GD is trading at a discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
GD is trading at a discount to its peers.
|GD 15.52||Peers 17.91||GD 1.67||Peers 3.33|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
GD is trading at a valuation on par with its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
GD trades at a significant discount to its peers.
|GD 4.13||Peers 7.91||GD 16.01||Peers 11.23|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
GD is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
GD is expected to have an earnings growth rate that significantly exceeds its peers.
|GD 1.52||Peers 1.59||GD 1.88||Peers 2.50|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
GD is trading at a valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
GD trails its peers on the basis of sales growth
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