General Dynamics Intrinsic Value – 1 Number That Could Spell Trouble for General Dynamics Shareholders
May 6, 2023
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General Dynamics ($NYSE:GD) is one of the world’s leading providers of aerospace and defense products and services. For many investors, General Dynamics is a top choice for their portfolio as it offers a steady stream of dividends.
However, there is one number that could spell trouble for General Dynamics shareholders. This is the first time General Dynamics has posted a decline in revenue in over a decade. While the decline was only slight, it could point to further problems with the company’s overall financial position. For investors, this decline in revenue should be cause for concern. While the company has managed to remain profitable and maintain its dividend payments, any sign of financial trouble could lead to drops in stock price and dividend payments.
Additionally, any further decline in revenue could signal further issues with General Dynamics’ operations and could lead to more serious financial difficulties. Therefore, investors should keep an eye on General Dynamics’ revenue numbers and consider carefully any new investments in the company. If the decline continues or further financial issues arise, investors should take steps to protect their portfolios and limit any potential losses.
Price History
Despite a strong start the day prior, the stock opened at $218.0 and closed at $218.1, which was a 0.1% decrease from its last closing price of 218.3. This could indicate that the market is uncertain about the short-term prospects of the company, potentially spelling trouble for shareholders. Investors will be keeping a close eye on the stock for any further changes, as this one number could be an indicator of things to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for General Dynamics. More…
| Total Revenues | Net Income | Net Margin |
| 39.9k | 3.39k | 8.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for General Dynamics. More…
| Operations | Investing | Financing |
| 4.07k | -1.53k | -3.43k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for General Dynamics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 52.1k | 33.01k | 69.58 |
Key Ratios Snapshot
Some of the financial key ratios for General Dynamics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.9% | -2.5% | 11.2% |
| FCF Margin | ROE | ROA |
| 7.4% | 14.8% | 5.3% |
Analysis – General Dynamics Intrinsic Value
At GoodWhale, we have conducted an analysis of GENERAL DYNAMICS‘s wellbeing. Based on our proprietary Valuation Line, the fair value of GENERAL DYNAMICS share is estimated to be around $208.7. Currently, the stock of GENERAL DYNAMICS is being traded at a price of $218.1, which is slightly higher than its fair value, overvalued by 4.5%. This indicates that the stock could provide a good return in the short term and investors should take advantage of the good opportunity. More…
Peers
General Dynamics Corp is one of the world’s leading aerospace and defense companies. It designs, develops, manufactures and supports a wide variety of products for both military and commercial customers. The company has a strong competitive position in many of its businesses, including aircraft, missiles, information technology, shipbuilding and submarines. Its main competitors are Lockheed Martin Corp, Northrop Grumman Corp, Aerojet Rocketdyne Holdings Inc.
– Lockheed Martin Corp ($NYSE:LMT)
Lockheed Martin Corp is a global security and aerospace company. It is principally engaged in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. The company has a market cap of 115.3B as of 2022 and a Return on Equity of 40.32%. Lockheed Martin is a leading provider of technology solutions for the defense, space, and security industries. The company’s products and services include air and missile defense systems, radar systems, electronic warfare systems, and satellite communications systems.
– Northrop Grumman Corp ($NYSE:NOC)
Northrop Grumman Corporation is an American global aerospace and defense technology company formed by the merger of Northrop Corporation and Grumman Corporation on January 6, 1996. The company has a market cap of 79.04B as of 2022 and a Return on Equity of 34.54%. Northrop Grumman is a leading supplier of military aircraft, satellites, and other defense systems. The company also provides a variety of other products and services, including security systems, information technology solutions, and engineering services.
– Aerojet Rocketdyne Holdings Inc ($NYSE:AJRD)
Aerojet Rocketdyne Holdings Inc is a holding company for Aerojet Rocketdyne, Inc, a leading aerospace and defense company. The company’s market cap as of 2022 was 3.5 billion, and its ROE was 21.2%. The company’s products include rockets, missiles, and propulsion systems for both military and civilian applications.
Summary
General Dynamics is a leading aerospace and defense company headquartered in Falls Church, Virginia. This means that the company has borrowed more money than it has equity to fund its operations, which can be a risk for investors.
Additionally, the company’s return on equity (ROE) has been declining in recent years, which could indicate that the company is not effectively using shareholder funds to generate profits. Furthermore, its dividend payout ratio has been steadily increasing, which could indicate that the company is not reinvesting its profits into its business. All these factors should be taken into account when considering investing in General Dynamics.
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