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General Dynamics Corp GD

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Stock XNYS Rating as of
$290.40 −0.58 (0.20%)
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Company Report

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General Dynamics Earnings: Looking Forward to Back Half of 2024; Maintaining $300 Fair Value

Nicolas Owens

General Dynamics reported second-quarter 2024 results, which included the first 11 deliveries of new G700 business jets. The company reaffirmed its expectation to deliver around 50 G700s this year, and upped its 2024 revenue guidance while trimming margin expectations somewhat. All told, these updates had no meaningful effect on our fair value estimate, which remains $300 per share for the wide-moat defense contractor.

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Price vs Fair Value

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GD is trading at a 56% premium.
Price
$290.40
Fair Value
$396.00
Uncertainty
Low
1-Star Price
$519.00
5-Star Price
$525.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

General Dynamics’ Gulfstream franchise has top-tier volume share and margin in the large end of the business jet market and has successfully transitioned to new models like the G700. Business jets are in high demand as the pandemic wanes.

Bears

General Dynamics depends on US military funding, which is an inherently political and thus uncertain process.

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Trading Information

Previous Close Price
$290.98
Day Range
$287.64–292.70
52-Week Range
$214.53–302.75
Bid/Ask
$290.00 / $290.90
Market Cap
$79.80 Bil
Volume/Avg
1.1 Mil / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
22.65
Price/Sales
1.78
Dividend Yield (Trailing)
1.89%
Dividend Yield (Forward)
1.96%
Total Yield
2.13%

Company Profile

General Dynamics is a defense contractor and business jet manufacturer. The firm’s segments include aerospace, marine, combat systems, and technology. General Dynamics' aerospace segment creates Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment builds and services nuclear-powered submarines, destroyers, and other ships. The technologies segment contains two main units, an IT business that primarily serves the government market and a mission systems business that focuses on products that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Large Core
Total Number of Employees
111,600
Website
https://www.gd.com

Competitors

Valuation

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Metric
GD
NOC
BBD.B
Price/Earnings (Normalized)
 22.6521.0418.54
Price/Book Value
 3.624.92—
Price/Sales
 1.781.770.79
Price/Cash Flow
 17.2516.577.20
Price/Earnings
GD
NOC
BBD.B

Financial Strength

Metric
GD
NOC
BBD.B
Quick Ratio
 0.720.880.26
Current Ratio
 1.331.111.05
Interest Coverage
 14.005.641.51
Quick Ratio
GD
NOC
BBD.B

Profitability

Metric
GD
NOC
BBD.B
Return on Assets (Normalized)
 6.80%5.08%2.91%
Return on Equity (Normalized)
 17.73%15.79%—
Return on Invested Capital (Normalized)
 12.41%9.13%23.20%
Return on Assets
GD
NOC
BBD.B
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