We are reviewing President Joe Biden's fiscal 2025 defense budget request, released March 11, which is limited by a compromise struck in mid-2023 to avoid government shutdown at only a 1% increase over the 2024 sum.
The National Defense Strategy prioritizes modernizing the military to counter potential great power adversaries. We think this will increase the proportion of the defense budget available to contractors.
Competing claims on future U.S. budget spending may depress future defense spending.
|
Metric
|
HII
|
NOC
|
GD
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.15 | 20.87 | 23.73 |
Price/Book Value | 2.60 | 4.59 | 3.66 |
Price/Sales | 0.94 | 1.75 | 1.86 |
Price/Cash Flow | 11.23 | 17.11 | 19.30 |
|
Metric
|
HII
|
NOC
|
GD
|
|---|---|---|---|
Quick Ratio | 0.81 | 0.86 | 0.79 |
Current Ratio | 0.92 | 1.15 | 1.44 |
Interest Coverage | 8.31 | 5.30 | 10.84 |
|
Metric
|
HII
|
NOC
|
GD
|
|---|---|---|---|
Return on Assets (Normalized) | 5.04% | 5.27% | 6.55% |
Return on Equity (Normalized) | 15.52% | 15.47% | 17.61% |
Return on Invested Capital (Normalized) | 9.39% | 9.27% | 12.01% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
GE
| GE Aerospace | Tfhsyrzlgr | Qrqc | $167.2 Bil | |
EADSY
| Airbus SE ADR | Wfjvftjh | Hsdh | $135.3 Bil | |
RTX
| RTX Corp | Pjvcwlmpt | Zgf | $133.9 Bil | |
LMT
| Lockheed Martin Corp | Jyytqfnxn | Mdjrf | $109.7 Bil | |
BA
| Boeing Co | Tglxlrc | Cfsf | $104.4 Bil | |
GD
| General Dynamics Corp | Xqymblsr | Fwtb | $78.3 Bil | |
TDG
| TransDigm Group Inc | Nlmkvdhrl | Gqr | $67.5 Bil | |
NOC
| Northrop Grumman Corp | Fzkvgyhfm | Qbb | $67.0 Bil | |
BAESY
| BAE Systems PLC ADR | Bkybjlmwk | Rlpqq | $48.4 Bil | |
RYCEY
| Rolls-Royce Holdings PLC ADR | Lwwktlrlx | Qsbxygb | $42.2 Bil |
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