General Dynamics Corp

GD

Ship & Boat Building & Repairing

Mkt Cap

$81.36B

PE

24.04

Debt

$9.259B

Cash

$1.036B

EV

$89.58B

FCF

$2.068B

Market Cap

$81.36B

P/E Ratio

24.04

Debt

$9.259B

Cash

$1.036B

EV

$89.58B

FCF

$2.068B

Charts data: {"Earnings":[{"time":"2014-12-30","value":2533000000},{"time":"2015-12-30","value":2965000000},{"time":"2016-12-30","value":2955000000},{"time":"2017-12-30","value":2912000000},{"time":"2018-12-30","value":3345000000},{"time":"2019-12-30","value":3484000000},{"time":"2020-12-30","value":3167000000},{"time":"2021-12-30","value":3257000000},{"time":"2022-12-30","value":3390000000},{"time":"2023-12-30","value":3315000000}],"Sales":[{"time":"2014-12-30","value":30852000000},{"time":"2015-12-30","value":31469000000},{"time":"2016-12-30","value":31353000000},{"time":"2017-12-30","value":30973000000},{"time":"2018-12-30","value":36193000000},{"time":"2019-12-30","value":39350000000},{"time":"2020-12-30","value":37925000000},{"time":"2021-12-30","value":38469000000},{"time":"2022-12-30","value":39407000000},{"time":"2023-12-30","value":42272000000}],"Net Margins":[{"time":"2014-12-30","value":0.08210164657072475},{"time":"2015-12-30","value":0.09421970828434333},{"time":"2016-12-30","value":0.0942493541287915},{"time":"2017-12-30","value":0.09401736996739095},{"time":"2018-12-30","value":0.092421186417263},{"time":"2019-12-30","value":0.08853875476493012},{"time":"2020-12-30","value":0.08350692155570204},{"time":"2021-12-30","value":0.08466557487847358},{"time":"2022-12-30","value":0.08602532544979319},{"time":"2023-12-30","value":0.07842070401211204}],"Assets":[{"time":"2014-12-30","value":35355000000},{"time":"2015-12-30","value":31997000000},{"time":"2016-12-30","value":32872000000},{"time":"2017-12-30","value":35046000000},{"time":"2018-12-30","value":45408000000},{"time":"2019-12-30","value":48841000000},{"time":"2020-12-30","value":51308000000},{"time":"2021-12-30","value":50073000000},{"time":"2022-12-30","value":51585000000},{"time":"2023-12-30","value":54810000000}],"Stockholders Equity":[{"time":"2014-12-30","value":11829000000},{"time":"2015-12-30","value":10738000000},{"time":"2016-12-30","value":10976000000},{"time":"2017-12-30","value":11435000000},{"time":"2018-12-30","value":11732000000},{"time":"2019-12-30","value":13577000000},{"time":"2020-12-30","value":15661000000},{"time":"2021-12-30","value":17641000000},{"time":"2022-12-30","value":18568000000},{"time":"2023-12-30","value":21299000000}],"ROE":[{"time":"2014-12-30","value":0.21413475357173048},{"time":"2015-12-30","value":0.2761221829018439},{"time":"2016-12-30","value":0.2692237609329446},{"time":"2017-12-30","value":0.25465675557498907},{"time":"2018-12-30","value":0.28511762700306853},{"time":"2019-12-30","value":0.256610444133461},{"time":"2020-12-30","value":0.20222208032692676},{"time":"2021-12-30","value":0.18462672184116546},{"time":"2022-12-30","value":0.18257216716932356},{"time":"2023-12-30","value":0.15564110991126345}],"ROA":[{"time":"2014-12-30","value":0.11045113845283552},{"time":"2015-12-30","value":0.1312623058411726},{"time":"2016-12-30","value":0.1317230469700657},{"time":"2017-12-30","value":0.11967128916281458},{"time":"2018-12-30","value":0.09819855532064835},{"time":"2019-12-30","value":0.09569828627587477},{"time":"2020-12-30","value":0.08238481328447805},{"time":"2021-12-30","value":0.08313861761827732},{"time":"2022-12-30","value":0.08163225743917805},{"time":"2023-12-30","value":0.07744937055281882}]}

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 and completion, charter, staffing, and fixed-base operator 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 builds crude oil and product tankers, and container and cargo ships; 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, munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, armored vehicles, and armaments; and offers modernization programs, engineering, support, and sustainment services. 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 computing, artificial intelligence; machine learning; big data analytics; development, security, and operations; and unmanned undersea vehicle manufacturing and assembly services. The company was founded in 1899 and is headquartered in Reston, Virginia.

Sector

10-Q
10/1/23
10-Q
7/2/23
10-Q
4/2/23
10-K
12/31/22
10-Q
10/2/22
10-Q
7/3/22
10-Q
4/3/22
10-K
12/31/21
10-Q
10/3/21
10-Q
7/4/21
10-Q
4/4/21
10-K
12/31/20
10-Q
9/27/20
10-Q
6/28/20
10-Q
3/29/20
10-K
12/31/19
10-Q
9/29/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
7/1/18
10-Q
4/1/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of General Dynamics Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$2.068B	$2.249B	$2.437B	$2.63B	$2.828B	$3.029B	$3.231B	$3.433B	$3.633B	$3.83B	$4.022B	$40.22B
DCF		$1.956B	$1.843B	$1.73B	$1.617B	$1.506B	$1.397B	$1.291B	$1.188B	$1.089B	$994.1M	$9.941B
Value	$24.55B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 1.9%

Earnings Stability 68%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	9.4%	9.4%	9.4%	9.2%	8.9%	8.4%	8.5%	8.6%	7.8%	7.8%
ROA	13%	13%	12%	9.8%	9.6%	8.2%	8.3%	8.2%	7.7%	7.9%
ROE	28%	27%	25%	29%	26%	20%	18%	18%	16%	16%

What is the average Net Margin?

The average Net Margin over the past 5 years is +8.56%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.22%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +8.64%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.41%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +21.11%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -2.53%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	1.93	2.67	1.17	5.49	7.48	5.58	3.73	3.42	2.59	4.48
Debt Equity	0.37	0.44	0.35	1.15	1.10	1.03	0.71	0.64	0.46	0.43
MIN
Graham Stability	-	-	100%	100%	100%	98%	98%	100%	100%	98%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 4.48.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.82.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.98.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	4.4%	3.2%	3.7%	7.3%	0.24%
Net Income	1.7%	-0.18%	1.5%	-2.2%	-1.3%
Stockholders Equity	9.9%	13%	11%	15%	2.2%
FCF	11%	9.1%	9.6%	9.8%	2.7%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.15%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.24%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -0.18%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -1.32%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +12.67%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.24%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +9.14%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +2.66%.