GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
USA - NYSE:GD - US3695501086 - Common Stock
327.303 USD
+0.9 (+0.28%)
Taking everything into account, GD scores 6 out of 10 in our fundamental rating. GD was compared to 69 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of GD get a neutral evaluation. Nothing too spectacular is happening here. GD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GD had positive earnings in the past year.
GD had a positive operating cash flow in the past year.
Each year in the past 5 years GD has been profitable.
In the past 5 years GD always reported a positive cash flow from operatings.
1.2 Ratios
GD has a Return On Assets of 7.18%. This is amongst the best in the industry. GD outperforms 81.16% of its industry peers.
GD's Return On Equity of 17.33% is amongst the best of the industry. GD outperforms 86.96% of its industry peers.
The Return On Invested Capital of GD (11.19%) is better than 89.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GD is in line with the industry average of 8.22%.
The 3 year average ROIC (9.79%) for GD is below the current ROIC(11.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 17.33% | ||
| ROIC | 11.19% |
ROA(3y)6.46%
ROA(5y)6.41%
ROE(3y)16.99%
ROE(5y)17.93%
ROIC(3y)9.79%
ROIC(5y)9.74%
1.3 Margins
With a decent Profit Margin value of 8.13%, GD is doing good in the industry, outperforming 72.46% of the companies in the same industry.
In the last couple of years the Profit Margin of GD has declined.
GD has a better Operating Margin (10.30%) than 69.57% of its industry peers.
GD's Operating Margin has declined in the last couple of years.
The Gross Margin of GD (15.40%) is worse than 72.46% of its industry peers.
In the last couple of years the Gross Margin of GD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.3% | ||
| PM (TTM) | 8.13% | ||
| GM | 15.4% |
OM growth 3Y-2.43%
OM growth 5Y-3.18%
PM growth 3Y-2.17%
PM growth 5Y-2.19%
GM growth 3Y-2.51%
GM growth 5Y-2.96%
2. Health
2.1 Basic Checks
GD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GD has been reduced compared to 1 year ago.
GD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.96 indicates that GD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.96, GD is in line with its industry, outperforming 57.97% of the companies in the same industry.
GD has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as GD would need 2.11 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.11, GD belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
GD has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GD (0.32) is better than 63.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 3.96 |
ROIC/WACC1.17
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.36 indicates that GD should not have too much problems paying its short term obligations.
GD's Current ratio of 1.36 is on the low side compared to the rest of the industry. GD is outperformed by 69.57% of its industry peers.
A Quick Ratio of 0.83 indicates that GD may have some problems paying its short term obligations.
GD's Quick ratio of 0.83 is on the low side compared to the rest of the industry. GD is outperformed by 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.22% over the past year.
Measured over the past 5 years, GD shows a small growth in Earnings Per Share. The EPS has been growing by 2.63% on average per year.
Looking at the last year, GD shows a quite strong growth in Revenue. The Revenue has grown by 11.85% in the last year.
GD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.93% yearly.
EPS 1Y (TTM)16.22%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%14.72%
Revenue 1Y (TTM)11.85%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%8.89%
3.2 Future
GD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.75% yearly.
Based on estimates for the next years, GD will show a small growth in Revenue. The Revenue will grow by 4.88% on average per year.
EPS Next Y15.14%
EPS Next 2Y13.45%
EPS Next 3Y11.89%
EPS Next 5Y10.75%
Revenue Next Year8.46%
Revenue Next 2Y6.23%
Revenue Next 3Y5.1%
Revenue Next 5Y4.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GD is valuated rather expensively with a Price/Earnings ratio of 21.97.
86.96% of the companies in the same industry are more expensive than GD, based on the Price/Earnings ratio.
GD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.64, the valuation of GD can be described as rather expensive.
Based on the Price/Forward Earnings ratio, GD is valued cheaply inside the industry as 85.51% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, GD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 18.64 |
4.2 Price Multiples
GD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GD is cheaper than 86.96% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GD indicates a rather cheap valuation: GD is cheaper than 94.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.36 | ||
| EV/EBITDA | 15.62 |
4.3 Compensation for Growth
GD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GD may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)8.35
EPS Next 2Y13.45%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, GD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.47, GD pays a better dividend. On top of this GD pays more dividend than 94.20% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, GD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
On average, the dividend of GD grows each year by 7.16%, which is quite nice.
GD has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of GD decreased in the last 3 years.
Dividend Growth(5Y)7.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
38.28% of the earnings are spent on dividend by GD. This is a low number and sustainable payout ratio.
GD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.28%
EPS Next 2Y13.45%
EPS Next 3Y11.89%
NYSE:GD (9/17/2025, 11:58:09 AM)
327.303
+0.9 (+0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners76.46%
Inst Owner Change-1.33%
Ins Owners0.21%
Ins Owner Change0.38%
Market Cap88.04B
Analysts74.84
Price Target343.45 (4.93%)
Short Float %0.83%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend5.62
Dividend Growth(5Y)7.16%
DP38.28%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.22%
Min EPS beat(2)1.66%
Max EPS beat(2)2.78%
EPS beat(4)2
Avg EPS beat(4)-0.62%
Min EPS beat(4)-6.39%
Max EPS beat(4)2.78%
EPS beat(8)3
Avg EPS beat(8)-1.61%
EPS beat(12)5
Avg EPS beat(12)-1.11%
EPS beat(16)7
Avg EPS beat(16)-1.03%
Revenue beat(2)1
Avg Revenue beat(2)0.8%
Min Revenue beat(2)-1%
Max Revenue beat(2)2.6%
Revenue beat(4)2
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)2.6%
Revenue beat(8)5
Avg Revenue beat(8)0.59%
Revenue beat(12)7
Avg Revenue beat(12)0.66%
Revenue beat(16)8
Avg Revenue beat(16)-0.5%
PT rev (1m)0.37%
PT rev (3m)15.39%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)1.93%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 18.64 | ||
| P/S | 1.75 | ||
| P/FCF | 21.36 | ||
| P/OCF | 17.55 | ||
| P/B | 3.73 | ||
| P/tB | 69.49 | ||
| EV/EBITDA | 15.62 |
EPS(TTM)14.9
EY4.55%
EPS(NY)17.56
Fwd EY5.36%
FCF(TTM)15.32
FCFY4.68%
OCF(TTM)18.65
OCFY5.7%
SpS186.9
BVpS87.66
TBVpS4.71
PEG (NY)1.45
PEG (5Y)8.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 17.33% | ||
| ROCE | 13.44% | ||
| ROIC | 11.19% | ||
| ROICexc | 11.65% | ||
| ROICexgc | 29.37% | ||
| OM | 10.3% | ||
| PM (TTM) | 8.13% | ||
| GM | 15.4% | ||
| FCFM | 8.2% |
ROA(3y)6.46%
ROA(5y)6.41%
ROE(3y)16.99%
ROE(5y)17.93%
ROIC(3y)9.79%
ROIC(5y)9.74%
ROICexc(3y)10.23%
ROICexc(5y)10.26%
ROICexgc(3y)26.7%
ROICexgc(5y)28.25%
ROCE(3y)11.76%
ROCE(5y)11.7%
ROICexcg growth 3Y0.05%
ROICexcg growth 5Y-6.95%
ROICexc growth 3Y3.01%
ROICexc growth 5Y-2.13%
OM growth 3Y-2.43%
OM growth 5Y-3.18%
PM growth 3Y-2.17%
PM growth 5Y-2.19%
GM growth 3Y-2.51%
GM growth 5Y-2.96%
F-Score7
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 99.12% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 13.14 | ||
| Cash Conversion | 82.5% | ||
| Profit Quality | 100.86% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.96 |
F-Score7
WACC9.54%
ROIC/WACC1.17
Cap/Depr(3y)111.39%
Cap/Depr(5y)108.79%
Cap/Sales(3y)2.3%
Cap/Sales(5y)2.35%
Profit Quality(3y)100.61%
Profit Quality(5y)98.91%
High Growth Momentum
Growth
EPS 1Y (TTM)16.22%
EPS 3Y5.7%
EPS 5Y2.63%
EPS Q2Q%14.72%
EPS Next Y15.14%
EPS Next 2Y13.45%
EPS Next 3Y11.89%
EPS Next 5Y10.75%
Revenue 1Y (TTM)11.85%
Revenue growth 3Y7.44%
Revenue growth 5Y3.93%
Sales Q2Q%8.89%
Revenue Next Year8.46%
Revenue Next 2Y6.23%
Revenue Next 3Y5.1%
Revenue Next 5Y4.88%
EBIT growth 1Y14.11%
EBIT growth 3Y4.83%
EBIT growth 5Y0.63%
EBIT Next Year27.63%
EBIT Next 3Y13.35%
EBIT Next 5Y10.65%
FCF growth 1Y36.46%
FCF growth 3Y-1.75%
FCF growth 5Y10.42%
OCF growth 1Y21.13%
OCF growth 3Y-1.15%
OCF growth 5Y6.98%