About General Dynamics Corporation
General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support, customer support and custom completion services, modifications, upgrades, and lifecycle sustainment support services. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy and Jones Act ships for commercial customers, as well as provides maintenance, modernization, and lifecycle support services for navy ships; offers and program management, planning, engineering, and design support services for submarine construction programs. The Combat Systems segment manufactures land combat solutions, such as wheeled and tracked combat vehicles, Stryker wheeled combat vehicles, piranha vehicles, weapons systems, energetics and munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, and armored vehicles; and offers modernization programs, support and sustainment services, and development programs. The Technologies segment provides information technology solutions and mission support services; mobile communication, computers, and command-and-control mission systems; intelligence, surveillance, and reconnaissance solutions to military, intelligence, and federal civilian customers; cloud services, cybersecurity, network modernization, artificial intelligence; machine learning; application development, high-performance computing, and 5G and advanced communications services; and unmanned undersea vehicle manufacturing and assembly services. The company was founded in 1899 and is headquartered in Reston, Virginia.
General Dynamics Corporation (GD) is a Industrials company in the Aerospace & Defense industry with a market capitalisation of $96.5B. The stock trades at 21.74x trailing earnings and yields 1.79%.
- Sector
- Industrials
- Industry
- Aerospace & Defense
- Market cap
- $96.5B
- P/E ratio
- 21.74
- Forward P/E
- 19.20
- EPS (TTM)
- $16.41
- Revenue (TTM)
- $54.9B
- Free cash flow
- $4.4B
- Profit margin
- 8.2%
- Dividend yield
- 1.79%
- Beta
- 0.32
- Shares outstanding
- 270.6M
Financial health: Fair6.8/10
6 strengths, 2 concerns. Weakest points: gross margin, peg ratio.
- Debt to equity: 0.32 (Strong, benchmark < 0.5) — Debt of 0.32x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 1.5y (Strong, benchmark < 4 years) — Net debt of $5.7B is 1.5x annual free cash flow — about a year of cash flow to repay.
- Current ratio: 1.44 (Watch, benchmark > 1.5) — Short-term assets cover 1.44x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 17.8% (Strong, benchmark > 15%) — Earns 17.8% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 15.4% (Concern, benchmark > 40%) — Keeps 15.4% of revenue after the direct cost of sales, well short of the > 40% mark.
- Net margin: 8.2% (Watch, benchmark > 10%) — Turns 8.2% of revenue into profit, short of the > 10% mark.
- Free cash flow: $4.0B (Strong, benchmark positive) — Generated $4.0B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 8.1% (Watch, benchmark > 10%) — Revenue changed 8.1% year on year, short of the > 10% mark.
- Earnings growth: 13.4% (Strong, benchmark > 10%) — Earnings changed 13.4% year on year, comfortably past the > 10% mark.
- PEG ratio: 2.20 (Concern, benchmark < 1) — At 2.20, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 37.7% (Strong, benchmark < 60%) — Pays out 37.7% of earnings as dividends, leaving room to keep paying.