General Dynamics' (NYSE:GD) five-year total shareholder returns outpace the underlying earnings growth

Simply Wall St.11-17

If you buy and hold a stock for many years, you'd hope to be making a profit. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while ...

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But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while ...</p>\n\n<a href=\"https://finance.yahoo.com/news/general-dynamics-nyse-gd-five-130010695.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GD","symbol_name":"通用动力","start_time":0,"source_url":"https://finance.yahoo.com/news/general-dynamics-nyse-gd-five-130010695.html","article_id":"2484435638","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/sRg9W66awu4LYJC.S9khew--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/d7e13fb4b88e91602446c4876e928129"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484435638","pubTimestamp":1731848410,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"If you buy and hold a stock for many years, you'd hope to be making a profit. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the General Dynamics Corporation  share price is up 57% in the last five years, that's less than the market return. Looking at the last year alone, the stock is up 18%.While this past week has detracted from the company's five-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.During five years of share price growth, General Dynamics achieved compound earnings per share  growth of 2.6% per year. This EPS growth is lower than the 10% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this fr","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"GD":"通用动力","NYSE":"纽交所"},"translate_title":"通用动力公司（纽约证券交易所股票代码：GD）五年股东总回报超过基本盈利增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GD":1,"NYSE":1},"content_text":"If you buy and hold a stock for many years, you'd hope to be making a profit. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the General Dynamics Corporation (NYSE:GD) share price is up 57% in the last five years, that's less than the market return. Looking at the last year alone, the stock is up 18%. \n While this past week has detracted from the company's five-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment. \n See our latest analysis for General Dynamics \n To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. \n During five years of share price growth, General Dynamics achieved compound earnings per share (EPS) growth of 2.6% per year. This EPS growth is lower than the 10% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. \n You can see below how EPS has changed over time (discover the exact values by clicking on the image). \n\n\n\n  NYSE:GD Earnings Per Share Growth November 17th 2024\n \n\n We know that General Dynamics has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained. \nWhat About Dividends?\n As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for General Dynamics the TSR over the last 5 years was 78%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! \nA Different Perspective\n General Dynamics shareholders are up 20% for the year (even including dividends). Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 12% over half a decade This suggests the company might be improving over time. If you would like to research General Dynamics in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company. \n Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. \nPlease note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484435638"}