General Dynamics Corp

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GD : NYSE : Industrial Goods
$189.59 up 0.53 | 0.28%
Today's Range: 188.6 - 189.94
Avg. Daily Volume: 1515500.0
02/21/17 - 4:03 PM ET

Financial Analysis

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 ($mil)8233.07809.0
EBITDA ($mil)1229.01158.0
EBIT ($mil)1117.01036.0
Net Income ($mil)797.0764.0

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2334.02785.0
Total Assets ($mil)32872.031997.0
Total Debt ($mil)3888.03399.0
Equity ($mil)10976.010738.0

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin21.2821.31
EBITDA Margin14.9214.82
Operating Margin13.5713.27
Sales Turnover0.950.98
Return on Assets8.989.26
Return on Equity27.8927.61
Debt Q4 FY16 Q4 FY15
Current Ratio1.21.17
Interest Expense23.019.0
Interest Coverage48.5754.53

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)302.42312.99
Div / share0.760.69
Book value / share36.2934.31
Institutional Own % n/a n/a
Avg Daily Volume1521788.01381761.0


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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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



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