GDGeneral Dynamics
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.6×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GD?
General Dynamics earns 14% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 5.4 points above what the capital costs: growth creates value
- Cash conversion
- 1.64×
Cash conversion · 1.01× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.88%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 11% |
| FY2022 | 11% |
| FY2023 | 10% |
| FY2024 | 10% |
| FY2025 | 10% |
Details›
- Free cash flow, trailing twelve months
- $6.20B
- Net income, trailing twelve months
- $4.34B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 14%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Aerospace & Defense
The closest names by size in the same industry