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General Dynamics (FRA:GDX) Earnings Yield (Joel Greenblatt) % : 5.12% (As of Mar. 2024)


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What is General Dynamics Earnings Yield (Joel Greenblatt) %?

General Dynamics's Enterprise Value for the quarter that ended in Mar. 2024 was €81,081 Mil. General Dynamics's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 was €4,139 Mil. General Dynamics's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2024 was 5.12%.

The historical rank and industry rank for General Dynamics's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

FRA:GDX' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.98   Med: 6.58   Max: 11.54
Current: 4.94

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of General Dynamics was 11.54%. The lowest was 1.98%. And the median was 6.58%.

FRA:GDX's Earnings Yield (Joel Greenblatt) % is ranked better than
73.57% of 314 companies
in the Aerospace & Defense industry
Industry Median: 2.73 vs FRA:GDX: 4.94

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. General Dynamics's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2024 was 4.87%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


General Dynamics Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for General Dynamics's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

General Dynamics Earnings Yield (Joel Greenblatt) % Chart

General Dynamics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.35 7.75 6.20 5.61 5.46

General Dynamics Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.13 6.43 6.29 5.46 5.12

Competitive Comparison of General Dynamics's Earnings Yield (Joel Greenblatt) %

For the Aerospace & Defense subindustry, General Dynamics's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


General Dynamics's Earnings Yield (Joel Greenblatt) % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, General Dynamics's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where General Dynamics's Earnings Yield (Joel Greenblatt) % falls into.



General Dynamics Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

General Dynamicss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=4019.211/71993.53
=5.58 %

General Dynamics's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €4,139 Mil.



General Dynamics  (FRA:GDX) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


General Dynamics Earnings Yield (Joel Greenblatt) % Related Terms

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General Dynamics (FRA:GDX) Business Description

Address
11011 Sunset Hills Road, Reston, VA, USA, 20190
General Dynamics is a defense contractor and business jet manufacturer. The firm's segments include aerospace, marine, combat systems, and technologies. General Dynamics' aerospace segment creates Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment creates and services nuclear-powered submarines, destroyers, and other ships. The technologies segment contains two main units, an IT business that primarily serves the government market and a mission systems business that focuses on products that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.

General Dynamics (FRA:GDX) Headlines

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