General Dynamics Receives $344.2M Contract from US Army for Economic Price Adjustment
April 14, 2023
Trending News ☀️
General Dynamics ($NYSE:GD) Corporation, a premier aerospace and defense company, has recently been awarded a $344.2M economic price adjustment contract from the U.S. Army for certain military programs. The contract requires General Dynamics to compete for the business and any modifications to the contract that may arise in the future. This contract is a big win for General Dynamics, which affirms the company’s reputation as a leader in the aerospace and defense industry. Its mission is to provide innovative, high-quality products and services that meet customer requirements and keep America safe.
Share Price
This contract is valued at $344.2 million, and will be used for the retrofitting of hundreds of M1A2 Abrams Tank turrets. General Dynamics‘ stock opened the day at $227.8 and closed at $228.8, a slight decrease from its previous closing price of $229.2. Despite this minor decline, investors remain optimistic that the EPA contract will have a positive effect on the company’s future performance. With its high-quality products and competitive pricing, General Dynamics is well-positioned to take advantage of future military contracts. 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 |
| 39.41k | 3.39k | 8.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for General Dynamics. More…
| Operations | Investing | Financing |
| 4.58k | -1.49k | -3.47k |
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 |
| 51.59k | 33.02k | 67.66 |
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 |
| 0.0% | -3.2% | 11.2% |
| FCF Margin | ROE | ROA |
| 8.8% | 15.3% | 5.4% |
Analysis
GoodWhale performed an analysis to assess the wellbeing of GENERAL DYNAMICS. According to the Star Chart, we concluded that GENERAL DYNAMICS was strong in dividend, profitability, and medium in asset, but weak in growth. Additionally, GENERAL DYNAMICS had a high health score of 8/10, indicating it is capable to pay off debt and fund future operations. Based on this analysis, we classified GENERAL DYNAMICS as a ‘cow’, a company with a track record of paying out consistent and sustainable dividends. Investors interested in such a company may include those seeking income and capital preservation, such as retirees seeking dividend income or investors looking for a low-risk option. 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 Corporation is a leading global aerospace and defense company with a portfolio of products and services including business jets, wheeled combat vehicles, naval ships, and information systems. Recently, the company has announced that it will compete for a $344.2M economic price adjustment contract by the U.S. Army. With this contract, General Dynamics will be able to maintain its market presence in the defense industry and significantly increase its revenue potential. Investing in General Dynamics may be a prudent decision, as the company is well positioned to benefit from the long-term growth prospects in U.S. defense spending.
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