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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

RTX Corp.

Howmet Aerospace, Inc.

L3Harris Technologies, Inc.

General Dynamics Corp.

Northrop Grumman Corp.

Teledyne Technologies, Inc.

Honeywell International, Inc.

Textron, Inc.

Lockheed Martin Corp.

The Boeing Co.

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 21.87%, its profits have risen by 17.5% ; the PEG ratio of the company is 1.7

Real-Time Research Report

Verdict Report

How much should you hold?

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.

23.06%

0.69

21.40%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.46%

EBIT Growth (5y)

3.66%

EBIT to Interest (avg)

11.77

Debt to EBITDA (avg)

1.78

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

1.43

Tax Ratio

16.66%

Dividend Payout Ratio

41.67%

Pledged Shares

Institutional Holding

89.21%

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

5.77

EV to EBIT

27.23

EV to EBITDA

23.16

EV to Capital Employed

4.43

EV to Sales

2.78

PEG Ratio

1.69

Dividend Yield

1.22%

ROCE (Latest)

16.27%

ROE (Latest)

17.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Bullish

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

6What is working for the Company

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

DEBT-EQUITY RATIO (HY)

Lowest at 38.58 %

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 40.08%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.35 times

Here's what is working for General Dynamics Corp.

Dividend per share

Highest at USD 4.23 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 5,026 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 38.58 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.57% (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.

Inventory Turnover Ratio

Lowest at 4.35 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 40.08%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)