General Dynamics CorpFind Ratings Reports
GENERAL DYNAMICS CORP's gross profit margin for the fourth quarter of its fiscal year 2016 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 very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.21% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q4 FY16||Q4 FY15|
|Net Sales ($mil)||8233.0||7809.0|
|Net Income ($mil)||797.0||764.0|
|Balance Sheet||Q4 FY16||Q4 FY15|
|Cash & Equiv. ($mil)||2334.0||2785.0|
|Total Assets ($mil)||32872.0||31997.0|
|Total Debt ($mil)||3888.0||3399.0|
|Profitability||Q4 FY16||Q4 FY15|
|Gross Profit Margin||21.28||21.31|
|Return on Assets||8.98||9.26|
|Return on Equity||27.89||27.61|
|Debt||Q4 FY16||Q4 FY15|
|Share Data||Q4 FY16||Q4 FY15|
|Shares outstanding (mil)||302.42||312.99|
|Div / share||0.76||0.69|
|Book value / share||36.29||34.31|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1521788.0||1381761.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 22.60 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 5.20 indicates a significant premium versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 35.39. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. 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 19.10||Peers 22.60||GD 26.62||Peers 16.87|
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.
Premium. 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 significant premium to its peers.
|GD 17.92||Peers 20.44||GD NM||Peers 4.06|
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.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|GD 5.20||Peers 35.39||GD 8.69||Peers 197.42|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, GD is expected to significantly trail its peers on the basis of its earnings growth rate.
|GD 1.82||Peers 1.66||GD -0.37||Peers 6.85|
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 significantly trails its peers on the basis of sales growth