General Dynamics Corp

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GD : NYSE : Industrial Goods
$143.06 -0.71 | -0.49%
Today's Range: 142.53 - 143.70
Avg. Daily Volume: 1,657,100
07/25/16 - 12:10 PM ET

Financial Analysis


GENERAL DYNAMICS CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. GENERAL DYNAMICS CORP has very weak liquidity. Currently, the Quick Ratio is 0.45 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 8.14% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)7724.07784.0
EBITDA ($mil)1170.01151.0
EBIT ($mil)1053.01027.0
Net Income ($mil)717.0716.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1907.04412.0
Total Assets ($mil)31702.034385.0
Total Debt ($mil)3400.03411.0
Equity ($mil)10582.011520.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin21.121.25
EBITDA Margin15.1414.78
Operating Margin13.6313.19
Sales Turnover0.990.91
Return on Assets9.357.71
Return on Equity28.1524.24
Debt Q1 FY16 Q1 FY15
Current Ratio1.141.25
Debt/Capital0.240.23
Interest Expense22.021.0
Interest Coverage47.8648.9


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)305.65328.73
Div / share0.690.62
EPS2.342.14
Book value / share34.6235.04
Institutional Own % n/a n/a
Avg Daily Volume1646767.01783512.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.96 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 4.13 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 9.94. The current price-to-sales ratio is well below the S&P 500 average and is also below 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GD 15.38 Peers 20.96   GD 20.35 Peers 16.97

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

GD is trading at a significant 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 premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GD 14.14 Peers 18.28   GD 3.29 Peers 2.24

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

GD is trading at a discount to its peers.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GD 4.13 Peers 9.94   GD 12.46 Peers 3.18

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GD 1.39 Peers 1.67   GD 0.12 Peers 6.23

Discount. 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 discount to 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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