General Dynamics Intrinsic Value – GENERAL DYNAMICS Reports Second Quarter Earnings for FY2023
August 9, 2023
☀️Earnings Overview
On July 26 2023, GENERAL DYNAMICS ($NYSE:GD) reported revenue of USD 10152.0 million for the second quarter of fiscal year 2023, which ended on June 30 2023, a 10.5% increase compared to the same period in the previous year. Unfortunately, net income decreased to USD 744.0 million, a 2.9% decrease from the year before.
Market Price
The stock opened at $220.2 and closed at $222.8, representing a 2.2% increase from the prior closing price of $218.0. This increase is a good sign for the company’s performance and stockholders alike. The report shows a solid fiscal quarter for GENERAL DYNAMICS, demonstrating the company’s capability to successfully manage its resources and execute their plans. Their strong financial performance is a testament to their outstanding performance in the market.
Overall, the report is positive news for GENERAL DYNAMICS stockholders and the company itself. The stock’s growth of 2.2% indicates that investors are confident in their investments, and the company is well-positioned to capitalize on any future opportunities. This provides an excellent outlook for GENERAL DYNAMICS as they continue to strive for success in FY2023. 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 |
| 40.86k | 3.37k | 8.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for General Dynamics. More…
| Operations | Investing | Financing |
| 4.14k | -1.53k | -3.68k |
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 |
| 52.56k | 33.08k | 71.34 |
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 |
| 2.0% | -0.8% | 10.9% |
| FCF Margin | ROE | ROA |
| 7.4% | 14.4% | 5.3% |
Analysis – General Dynamics Intrinsic Value
At GoodWhale, we recently conducted an analysis of GENERAL DYNAMICS‘ fundamentals, and used our proprietary Valuation Line to calculate an intrinsic value of $220.9 per share. Based on our findings, we believe the price of GENERAL DYNAMICS stock is fair at $222.8. This means that the current market value is just slightly above the intrinsic value, suggesting that the stock is neither undervalued nor overvalued at this time. We believe investors should consider GENERAL DYNAMICS as a long-term investment opportunity since it offers good value for money. More…
Peers
General Dynamics Corp is one of the world’s leading aerospace and defense companies. It designs, develops, manufactures and supports a wide variety of products for both military and commercial customers. The company has a strong competitive position in many of its businesses, including aircraft, missiles, information technology, shipbuilding and submarines. Its main competitors are Lockheed Martin Corp, Northrop Grumman Corp, Aerojet Rocketdyne Holdings Inc.
– Lockheed Martin Corp ($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 reported strong quarterly revenue growth of 10.5% year-over-year for its second quarter of fiscal year 2023. Despite the impressive sales growth, the company’s net income fell 2.9% compared to the same quarter in the prior year. Investors may be pleased with the increased revenue, however, the decline in net income may be cause for concern. It is important to watch how the company’s earnings progress in the coming quarters to determine if the dip in net income is a blip or the start of a downward trend.
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