Today I am going to continue in m series about the best investment choice individuals can make during this time where the uncertainty of stock market is high and the risk that can be taken is quite unknown.
General Dynamics (GD) is a global aerospace and defense company. From Gulfstream business jets and combat vehicles to nuclear-powered submarines and communications systems, people around the world depend on its products and services for their safety and security.
By analyzing the financial statement of GD I found that the company considered one of the best choice that individual can made based in the two main criteria that market is really appreciated about each stock which are Return On Invested Capital (ROIC), and ability to create value for investors by generating high free cash flow.
Based to GD’s ROIC as shown below, the company was able to jump from negative territory to a positive one in 2018 and was able to maintain high ROIC even when it was decreasing but still above the market average as well as the industry average.
Also, based in the company free cash flow, the company was able to do the same as its ROIC, the free cash flow (as shown below) has jumped from (-24) billion Droller to (5.249) billion droller in year 2018 and the company keep maintain this value for the followed year.
Based on the two criteria showed above (GD) one of the best companies that investors can buy its stock and holed it for at lest three ears.