General Dynamics Corporation [NYSE:GD]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For General Dynamics Corporation [GD], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give GD an Outperform rating. Its stock price has been found in the range of 143.87 to 229.74. This is compared to its latest closing price of $172.00.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for General Dynamics Corporation [GD] is sitting at 2.38. This is compared to 1 month ago, when its average rating was 2.38.
For the quarter ending in Dec-18 General Dynamics Corporation [GD] generated $10.38 billion in sales. That’s 0.20% higher than the average estimate of $10.36 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Wed 24 Apr (In 8 Days).
Fundamental Analysis of General Dynamics Corporation [GD]
Now let’s turn to look at profitability: with a current Operating Margin for General Dynamics Corporation [GD] sitting at +12.31 and its Gross Margin at +18.55, this company’s Net Margin is now 9.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 22.53, and its Return on Invested Capital has reached 15.30%. Its Return on Equity is 28.99, and its Return on Assets is 8.35. These metrics all suggest that General Dynamics Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, General Dynamics Corporation [GD] has generated a Total Debt to Total Equity ratio of 105.84. Similarly, its Total Debt to Total Capital is 51.42, while its Total Debt to Total Assets stands at 27.35. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 97.55, and its Long-Term Debt to Total Capital is 47.39. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 11.66 and its Total Debt to EBITDA Value is 2.38. The Enterprise Value to Sales for this firm is now 1.68, and its Total Debt to Enterprise Value stands at 0.21. General Dynamics Corporation [GD] has a Price to Book Ratio of 3.87, a Price to Cash Flow Ratio of 14.94 and P/E Ratio of 15.58. These metrics all suggest that General Dynamics Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, General Dynamics Corporation [GD] earns $342,737 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 3.77 and its Total Asset Turnover is 0.90. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.83 and its Current Ratio is 1.23. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
General Dynamics Corporation [GD] has 285.48M shares outstanding, amounting to a total market cap of $49.10B. Its stock price has been found in the range of 143.87 to 229.74. At its current price, it has moved by -24.10% from its 52-week high, and it has moved 21.21% from its 52-week low.
This stock’s Beta value is currently 1.12, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 56.74. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is General Dynamics Corporation [GD] a Reliable Buy?
Shares of General Dynamics Corporation [GD], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.