General Dynamics Corp. (GD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Howmet Aerospace, Inc.

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General Dynamics Corp.

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Textron, Inc.

Honeywell International, Inc.

TransDigm Group, Inc.

Why is General Dynamics Corp. ?

High Management Efficiency with a high ROCE of 15.35%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.77

Poor long term growth as Operating profit has grown by an annual rate 3.66% of over the last 5 years

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 5,026 MM
DIVIDEND PER SHARE(HY) Highest at USD 4.23
RAW MATERIAL COST(Y) Fallen by 0.57% (YoY)

With ROCE of 16.27%, it has a very attractive valuation with a 4.43 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 28.65%, its profits have risen by 17.5% ; the PEG ratio of the company is 1.7

Market Beating Performance

The stock has generated a return of 28.65% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to General Dynamics Corp. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is General Dynamics Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

General Dynamics Corp.

25.66%

0.74

21.40%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.74%

EBIT Growth (5y)

5.19%

EBIT to Interest (avg)

11.77

Debt to EBITDA (avg)

1.78

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

1.47

Tax Ratio

16.66%

Dividend Payout Ratio

38.83%

Pledged Shares

Institutional Holding

89.22%

ROCE (avg)

15.35%

ROE (avg)

18.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.30

EV to EBIT

31.27

EV to EBITDA

26.67

EV to Capital Employed

5.30

EV to Sales

3.19

PEG Ratio

2.88

Dividend Yield

1.00%

ROCE (Latest)

16.95%

ROE (Latest)

16.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 7,423 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.53 times

DIVIDEND PER SHARE(HY)

Highest at USD 4.53

RAW MATERIAL COST(Y)

Fallen by -2.83% (YoY

CASH AND EQV(HY)

Highest at USD 5,987 MM

DEBT-EQUITY RATIO (HY)

Lowest at 23.69 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.8 times

OPERATING PROFIT MARGIN(Q)

Highest at 12.25 %

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 38.74%

Here's what is working for General Dynamics Corp.

Operating Cash Flow

Highest at USD 7,423 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Highest at 4.53 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 4.53 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit Margin

Highest at 12.25 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 5,987 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 23.69 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.8 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -2.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for General Dynamics Corp.

Dividend Payout Ratio

Lowest at 38.74%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)