General Dynamics Corp

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GD : NYSE : Industrial Goods
$205.41 | %
Today's Range: 204.63 - 206.5099
Avg. Daily Volume: 1128600.0
09/22/17 - 4:02 PM ET

Financial Analysis

GENERAL DYNAMICS CORP's gross profit margin for the second quarter of its fiscal year 2017 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 weak liquidity. Currently, the Quick Ratio is 0.78 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 Q2 FY17 Q2 FY16
Net Sales ($mil)7675.07774.0
EBITDA ($mil)1165.01142.0
EBIT ($mil)1056.01027.0
Net Income ($mil)749.0714.0

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1856.01899.0
Total Assets ($mil)33793.031769.0
Total Debt ($mil)3978.03436.0
Equity ($mil)10952.010995.0

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin21.7620.93
EBITDA Margin15.1714.68
Operating Margin13.7613.21
Sales Turnover0.920.98
Return on Assets8.858.97
Return on Equity28.1726.05
Debt Q2 FY17 Q2 FY16
Current Ratio1.271.19
Interest Expense24.023.0
Interest Coverage44.044.65

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)299.46305.28
Div / share0.841.52
Book value / share36.5736.02
Institutional Own % n/a n/a
Avg Daily Volume1128140.01100037.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 29.49 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 24.93. To use another comparison, its price-to-book ratio of 5.63 indicates a significant premium versus the S&P 500 average of 3.11 and a significant discount versus the industry average of 15.99. 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 20.51 Peers 29.49   GD 26.87 Peers 18.12

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 significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
GD 19.54 Peers 23.31   GD NM Peers 4.91

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 5.63 Peers 15.99   GD 10.70 Peers 62.82

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 1.98 Peers 1.93   GD 0.08 Peers 3.76

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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