General Dynamics Corp Scores 80% Using Fisher's Model

General Dynamics Corp (GD) earns an 80% rating from a value strategy. This reflects positive fundamentals despite challenges in long-term EPS growth and price/sales ratio. Investors may find potential in GD's solid free cash flow and profit margins.

Date: 01-03-2025

AI Rating: 6

Investment Overview
General Dynamics Corp (GD) stands out with a high rating of 80% from the Price/Sales Investor model based on Kenneth Fisher's strategy. This indicates a strong interest in the stock, emphasizing key fundamentals like free cash flow and profit margins that suggest potential value for investors.

Key Indicators and Ratings
The analysis provided indicates the following evaluations:
- **Price/Sales Ratio:** Pass
- **Total Debt/Equity Ratio:** Pass
- **Price/Research Ratio:** Pass
- **Long-term EPS Growth Rate:** Fail
- **Free Cash Per Share:** Pass
- **Three Year Average Net Profit Margin:** Pass

While the stock meets many of the model's criteria, it fails in areas critical for long-term growth, specifically the long-term EPS growth rate and price/sales ratio. Investors should note this as a warning sign that may impact future expectations for stock price appreciation.

Financial Metrics Analysis
From the analysis, there are significant insights into the company’s performance metrics:
- **Free Cash Flow (FCF):** The company passes in terms of free cash per share, signaling strong operational cash generation, which is a positive indicator for potential reinvestment or shareholder returns.
- **Profit Margins:** The positive rating for the three-year average net profit margin indicates efficient cost management and profitability, which is reassuring for investors.
Conversely, the failure in the long-term EPS growth rate might indicate challenges ahead in sustaining growth levels, potentially deterring some growth-focused investors.

The overall fundamentals suggest GD has a solid base, but the weak areas may temper enthusiasm among investors leaning towards growth-based metrics.

Stocks: GD