General Dynamics Corp (GD, Financial) has been making waves in the stock market with its impressive performance. The company's stock price currently stands at $235.54, reflecting a market cap of $64.31 billion. Over the past week, the stock has seen a gain of 6.20%, and over the past three months, it has surged by 10.56%. According to the GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is fairly valued both currently and three months ago, with a GF Value of $227.9 and a past GF Value of $218.35 respectively.
Unveiling General Dynamics Corp
General Dynamics Corp operates in the Aerospace & Defense industry as a defense contractor and business jet manufacturer. The company's business segments include aerospace, marine, combat systems, and technologies. The aerospace segment creates Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produce land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment creates 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.
Profitability Analysis
General Dynamics Corp boasts a high Profitability Rank of 8/10, indicating a high level of profitability. The company's Operating Margin stands at 10.34%, better than 67.69% of companies in the industry. Its ROE is 18.27%, ROA is 6.53%, and ROIC is 7.83%, all of which are better than the majority of companies in the industry. The company has also demonstrated consistent profitability over the past 10 years, better than 99.62% of companies.
Growth Prospects
The company's Growth Rank is 6/10, indicating moderate growth. The 3-year and 5-year revenue growth rates per share are 1.50% and 5.90% respectively, while the future 3-year to 5-year total revenue growth rate estimate is 5.17%. The 3-year and 5-year EPS without NRI growth rates are 0.60% and 3.50% respectively, and the future 3-year to 5-year EPS without NRI growth rate estimate is 9.98%.
Top Holders of the Stock
The top three holders of the stock are PRIMECAP Management (Trades, Portfolio) with 875,820 shares (0.32%), Tom Gayner (Trades, Portfolio) with 391,000 shares (0.14%), and Richard Pzena (Trades, Portfolio) with 344,778 shares (0.13%).
Competitive Landscape
General Dynamics Corp faces competition from Northrop Grumman Corp(NOC, Financial) with a market cap of $69.9 billion, TransDigm Group Inc(TDG, Financial) with a market cap of $47.41 billion, and L3Harris Technologies Inc(LHX, Financial) with a market cap of $33.19 billion.
Conclusion
In conclusion, General Dynamics Corp's stock performance, profitability, and growth, as well as its position in the market compared to its competitors, make it a potential candidate for value investors. The company's consistent profitability, moderate growth, and fair valuation indicate a stable and promising future. However, investors should also consider the competitive landscape and the company's growth estimates for a comprehensive investment decision.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
