GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
NYSE:GD • US3695501086
357.05 USD
+6.33 (+1.8%)
At close: Feb 27, 2026
356 USD
-1.05 (-0.29%)
After Hours: 2/27/2026, 8:06:42 PM
Taking everything into account, GD scores 6 out of 10 in our fundamental rating. GD was compared to 74 industry peers in the Aerospace & Defense industry. GD has an excellent profitability rating, but there are some minor concerns on its financial health. GD has a correct valuation and a medium 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.
- GD had positive earnings in each of the past 5 years.
- In the past 5 years GD always reported a positive cash flow from operatings.
1.2 Ratios
- GD has a Return On Assets of 7.35%. This is in the better half of the industry: GD outperforms 79.73% of its industry peers.
- GD has a better Return On Equity (16.43%) than 83.78% of its industry peers.
- GD has a Return On Invested Capital of 10.98%. This is amongst the best in the industry. GD outperforms 82.43% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GD is in line with the industry average of 8.98%.
- The 3 year average ROIC (10.20%) for GD is below the current ROIC(10.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.35% | ||
| ROE | 16.43% | ||
| ROIC | 10.98% |
ROA(3y)6.72%
ROA(5y)6.65%
ROE(3y)16.38%
ROE(5y)17.17%
ROIC(3y)10.2%
ROIC(5y)9.96%
1.3 Margins
- GD's Profit Margin of 8.01% is fine compared to the rest of the industry. GD outperforms 74.32% of its industry peers.
- GD's Profit Margin has been stable in the last couple of years.
- With a decent Operating Margin value of 10.19%, GD is doing good in the industry, outperforming 64.86% of the companies in the same industry.
- In the last couple of years the Operating Margin of GD has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 15.13%, GD is doing worse than 70.27% of the companies in the same industry.
- GD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.19% | ||
| PM (TTM) | 8.01% | ||
| GM | 15.13% |
OM growth 3Y-1.56%
OM growth 5Y-1.33%
PM growth 3Y-2.35%
PM growth 5Y-0.83%
GM growth 3Y-3.44%
GM growth 5Y-1.93%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GD is still creating some value.
- The number of shares outstanding for GD remains at a similar level compared to 1 year ago.
- The number of shares outstanding for GD has been reduced compared to 5 years ago.
- GD has a better debt/assets ratio than last year.
2.2 Solvency
- GD has an Altman-Z score of 4.26. This indicates that GD is financially healthy and has little risk of bankruptcy at the moment.
- GD has a Altman-Z score (4.26) which is in line with its industry peers.
- The Debt to FCF ratio of GD is 2.13, which is a good value as it means it would take GD, 2.13 years of fcf income to pay off all of its debts.
- GD has a better Debt to FCF ratio (2.13) than 93.24% of its industry peers.
- A Debt/Equity ratio of 0.29 indicates that GD is not too dependend on debt financing.
- GD has a Debt to Equity ratio of 0.29. This is in the better half of the industry: GD outperforms 68.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.16
WACC9.47%
2.3 Liquidity
- A Current Ratio of 1.44 indicates that GD should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.44, GD is doing worse than 67.57% of the companies in the same industry.
- A Quick Ratio of 0.89 indicates that GD may have some problems paying its short term obligations.
- With a Quick ratio value of 0.89, GD is not doing good in the industry: 77.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.27% over the past year.
- The Earnings Per Share has been growing slightly by 7.03% on average over the past years.
- Looking at the last year, GD shows a quite strong growth in Revenue. The Revenue has grown by 10.13% in the last year.
- GD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.74% yearly.
EPS 1Y (TTM)13.27%
EPS 3Y8.19%
EPS 5Y7.03%
EPS Q2Q%0.48%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y10.07%
Revenue growth 5Y6.74%
Sales Q2Q%7.8%
3.2 Future
- Based on estimates for the next years, GD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.37% on average per year.
- The Revenue is expected to grow by 4.23% on average over the next years.
EPS Next Y8.75%
EPS Next 2Y9.74%
EPS Next 3Y9.29%
EPS Next 5Y8.37%
Revenue Next Year5.3%
Revenue Next 2Y4.94%
Revenue Next 3Y4.72%
Revenue Next 5Y4.23%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 23.11, GD is valued on the expensive side.
- Based on the Price/Earnings ratio, GD is valued cheaply inside the industry as 93.24% of the companies are valued more expensively.
- GD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.10, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 21.25, the valuation of GD can be described as rather expensive.
- 94.59% of the companies in the same industry are more expensive than GD, based on the Price/Forward Earnings ratio.
- GD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 21.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GD is valued cheaply inside the industry as 90.54% of the companies are valued more expensively.
- 93.24% of the companies in the same industry are more expensive than GD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.45 | ||
| EV/EBITDA | 16.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- GD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.64
PEG (5Y)3.29
EPS Next 2Y9.74%
EPS Next 3Y9.29%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.76%, GD has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.34, GD pays a better dividend. On top of this GD pays more dividend than 95.95% of the companies listed in the same industry.
- GD's Dividend Yield is comparable with the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
- On average, the dividend of GD grows each year by 6.47%, 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)6.47%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 37.84% of the earnings are spent on dividend by GD. This is a low number and sustainable payout ratio.
- The dividend of GD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.84%
EPS Next 2Y9.74%
EPS Next 3Y9.29%
357.05
+6.33 (+1.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners77.44%
Inst Owner Change1.29%
Ins Owners0.21%
Ins Owner Change0.61%
Market Cap96.54B
Revenue(TTM)52.55B
Net Income(TTM)4.21B
Analysts76.25
Price Target400.13 (12.07%)
Short Float %0.95%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend5.89
Dividend Growth(5Y)6.47%
DP37.84%
Div Incr Years2
Div Non Decr Years2
Ex-Date01-16 2026-01-16 (1.5)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.33%
Min EPS beat(2)-1.11%
Max EPS beat(2)1.78%
EPS beat(4)3
Avg EPS beat(4)1.28%
Min EPS beat(4)-1.11%
Max EPS beat(4)2.78%
EPS beat(8)3
Avg EPS beat(8)-1.2%
EPS beat(12)5
Avg EPS beat(12)-0.92%
EPS beat(16)7
Avg EPS beat(16)-0.84%
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)1.13%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-1%
Max Revenue beat(4)2.6%
Revenue beat(8)5
Avg Revenue beat(8)0.48%
Revenue beat(12)8
Avg Revenue beat(12)1.05%
Revenue beat(16)9
Avg Revenue beat(16)0.3%
PT rev (1m)2.7%
PT rev (3m)4.18%
EPS NQ rev (1m)-3.88%
EPS NQ rev (3m)-3.54%
EPS NY rev (1m)-5.14%
EPS NY rev (3m)-5.27%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 21.25 | ||
| P/S | 1.84 | ||
| P/FCF | 24.45 | ||
| P/OCF | 18.89 | ||
| P/B | 3.77 | ||
| P/tB | 29.82 | ||
| EV/EBITDA | 16.07 |
EPS(TTM)15.45
EY4.33%
EPS(NY)16.8
Fwd EY4.71%
FCF(TTM)14.6
FCFY4.09%
OCF(TTM)18.9
OCFY5.29%
SpS194.35
BVpS94.76
TBVpS11.98
PEG (NY)2.64
PEG (5Y)3.29
Graham Number181.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.35% | ||
| ROE | 16.43% | ||
| ROCE | 13.24% | ||
| ROIC | 10.98% | ||
| ROICexc | 11.65% | ||
| ROICexgc | 28.22% | ||
| OM | 10.19% | ||
| PM (TTM) | 8.01% | ||
| GM | 15.13% | ||
| FCFM | 7.51% |
ROA(3y)6.72%
ROA(5y)6.65%
ROE(3y)16.38%
ROE(5y)17.17%
ROIC(3y)10.2%
ROIC(5y)9.96%
ROICexc(3y)10.74%
ROICexc(5y)10.44%
ROICexgc(3y)26.93%
ROICexgc(5y)27.15%
ROCE(3y)12.3%
ROCE(5y)12.01%
ROICexgc growth 3Y1.26%
ROICexgc growth 5Y-3.14%
ROICexc growth 3Y5.31%
ROICexc growth 5Y2.03%
OM growth 3Y-1.56%
OM growth 5Y-1.33%
PM growth 3Y-2.35%
PM growth 5Y-0.83%
GM growth 3Y-3.44%
GM growth 5Y-1.93%
F-Score8
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 125.65% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 14.24 | ||
| Cash Conversion | 81.37% | ||
| Profit Quality | 93.8% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 4.26 |
F-Score8
WACC9.47%
ROIC/WACC1.16
Cap/Depr(3y)111.26%
Cap/Depr(5y)111.89%
Cap/Sales(3y)2.09%
Cap/Sales(5y)2.28%
Profit Quality(3y)97.61%
Profit Quality(5y)99.79%
High Growth Momentum
Growth
EPS 1Y (TTM)13.27%
EPS 3Y8.19%
EPS 5Y7.03%
EPS Q2Q%0.48%
EPS Next Y8.75%
EPS Next 2Y9.74%
EPS Next 3Y9.29%
EPS Next 5Y8.37%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y10.07%
Revenue growth 5Y6.74%
Sales Q2Q%7.8%
Revenue Next Year5.3%
Revenue Next 2Y4.94%
Revenue Next 3Y4.72%
Revenue Next 5Y4.23%
EBIT growth 1Y11.68%
EBIT growth 3Y8.35%
EBIT growth 5Y5.32%
EBIT Next Year27.76%
EBIT Next 3Y13.01%
EBIT Next 5Y9.63%
FCF growth 1Y23.79%
FCF growth 3Y4.25%
FCF growth 5Y6.88%
OCF growth 1Y24.45%
OCF growth 3Y3.57%
OCF growth 5Y6.11%
GENERAL DYNAMICS CORP / GD FAQ
What is the ChartMill fundamental rating of GENERAL DYNAMICS CORP (GD) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GD.
What is the valuation status for GD stock?
ChartMill assigns a valuation rating of 5 / 10 to GENERAL DYNAMICS CORP (GD). This can be considered as Fairly Valued.
Can you provide the profitability details for GENERAL DYNAMICS CORP?
GENERAL DYNAMICS CORP (GD) has a profitability rating of 7 / 10.
Can you provide the financial health for GD stock?
The financial health rating of GENERAL DYNAMICS CORP (GD) is 6 / 10.
Can you provide the dividend sustainability for GD stock?
The dividend rating of GENERAL DYNAMICS CORP (GD) is 6 / 10 and the dividend payout ratio is 37.84%.