General Dynamics Corp (GD)
Industrial Goods | Aerospace/Defense Products & Services
CEO: Phebe N. Novakovic
General Dynamics Corp receives a in our proprietary ranking system that combines valuation, moat, operational performance, and financial strength. View the Top 50 tickrz ranked stocks here.
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. General Dynamics Corp's valuation score is comprised of a P/E ratio of 19.2x, a P/B ratio of 5.6x, a P/S ratio of 1.9x, and an EV/EBITDA ratio of 12.5x. .
WARREN BUFFETT RANKING
General Dynamics Corp ranks 177 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a average score, meaning it ranks in the middle of the pack on valuation, moat, volatility, and financial strength factors. However, the company's moat is strong so it could be worth investigating in the future should its valuation improve.
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. General Dynamics Corp appears to have a durable competitive advantage within the Industrial Goods sector.
General Dynamics Corp has a Piotroski F Score of 7 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 47.05x, a debt/equity ratio of 37% and a Moat Rank of 136 translate to a strong Financial Strength score.
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 30.75% over the last 12 months. This performance is strong compared to other stocks in the S&P 500, earning it a rank of 74.
VALUE + YIELD
Shares currently yield 1.59%. Our dividend ranking approach looks at a company's dividend growth rate, payout ratio, business moat, and valuation. Based on our methodology, General Dynamics Corp ranks 112 among the S&P 500 constituents.
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. Its 6.8% 5 year annualized EPS growth, -0.8% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of -0.5% speak to its relatively poor ranking.