GENERAL DYNAMICS CORP (GD) Stock Fundamental Analysis
NYSE:GD • US3695501086
364.78 USD
+7.73 (+2.16%)
At close: Mar 2, 2026
363.94 USD
-0.84 (-0.23%)
Pre-Market: 3/3/2026, 7:28:26 AM
GD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 75 industry peers in the Aerospace & Defense industry. While GD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year GD was profitable.
- GD had a positive operating cash flow in the past year.
- GD had positive earnings in each of the past 5 years.
- Each year in the past 5 years GD had a positive operating cash flow.
1.2 Ratios
- GD has a better Return On Assets (7.35%) than 76.92% of its industry peers.
- Looking at the Return On Equity, with a value of 16.43%, GD belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
- GD has a Return On Invested Capital of 10.98%. This is amongst the best in the industry. GD outperforms 82.05% of its industry peers.
- GD had an Average Return On Invested Capital over the past 3 years of 10.20%. This is in line with the industry average of 8.86%.
- 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
- Looking at the Profit Margin, with a value of 8.01%, GD is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
- In the last couple of years the Profit Margin of GD has remained more or less at the same level.
- With a decent Operating Margin value of 10.19%, GD is doing good in the industry, outperforming 62.82% of the companies in the same industry.
- GD's Operating Margin has been stable in the last couple of years.
- The Gross Margin of GD (15.13%) is worse than 70.51% of its industry peers.
- 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.
- GD has about the same amout of shares outstanding than it did 1 year ago.
- GD has less shares outstanding than it did 5 years ago.
- GD has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.33 indicates that GD is not in any danger for bankruptcy at the moment.
- GD has a Altman-Z score of 4.33. This is comparable to the rest of the industry: GD outperforms 56.41% of 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 93.59% of its industry peers.
- GD has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- GD has a Debt to Equity ratio of 0.29. This is in the better half of the industry: GD outperforms 67.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.19
WACC9.24%
2.3 Liquidity
- GD has a Current Ratio of 1.44. This is a normal value and indicates that GD is financially healthy and should not expect problems in meeting its short term obligations.
- GD's Current ratio of 1.44 is on the low side compared to the rest of the industry. GD is outperformed by 69.23% of its industry peers.
- GD has a Quick Ratio of 1.44. This is a bad value and indicates that GD is not financially healthy enough and could expect problems in meeting its short term obligations.
- GD's Quick ratio of 0.89 is on the low side compared to the rest of the industry. GD is outperformed by 78.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- GD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.27%, which is quite good.
- Measured over the past 5 years, GD shows a small growth in Earnings Per Share. The EPS has been growing by 7.03% on average per year.
- 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.
- Based on estimates for the next years, GD will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
EPS Next Y8.75%
EPS Next 2Y9.74%
EPS Next 3Y9.29%
EPS Next 5Y8.37%
Revenue Next Year5.29%
Revenue Next 2Y4.9%
Revenue Next 3Y4.65%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 23.61, the valuation of GD can be described as rather expensive.
- Based on the Price/Earnings ratio, GD is valued cheaply inside the industry as 91.03% of the companies are valued more expensively.
- GD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
- GD is valuated rather expensively with a Price/Forward Earnings ratio of 21.71.
- GD's Price/Forward Earnings ratio is rather cheap when compared to the industry. GD is cheaper than 88.46% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.11, GD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.61 | ||
| Fwd PE | 21.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GD is valued cheaper than 85.90% of the companies in the same industry.
- 92.31% 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 | 24.98 | ||
| EV/EBITDA | 16.67 |
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)2.7
PEG (5Y)3.36
EPS Next 2Y9.74%
EPS Next 3Y9.29%
5. Dividend
5.1 Amount
- GD has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.33, GD pays a better dividend. On top of this GD pays more dividend than 96.15% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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
- GD pays out 37.84% of its income as dividend. This is a 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%
364.78
+7.73 (+2.16%)
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 Change1.66%
Ins Owners0.21%
Ins Owner Change0.76%
Market Cap98.63B
Revenue(TTM)52.55B
Net Income(TTM)4.21B
Analysts76.25
Price Target400.26 (9.73%)
Short Float %0.99%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)2.73%
PT rev (3m)3.82%
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)0.67%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.61 | ||
| Fwd PE | 21.71 | ||
| P/S | 1.88 | ||
| P/FCF | 24.98 | ||
| P/OCF | 19.3 | ||
| P/B | 3.85 | ||
| P/tB | 30.46 | ||
| EV/EBITDA | 16.67 |
EPS(TTM)15.45
EY4.24%
EPS(NY)16.8
Fwd EY4.61%
FCF(TTM)14.6
FCFY4%
OCF(TTM)18.9
OCFY5.18%
SpS194.35
BVpS94.76
TBVpS11.98
PEG (NY)2.7
PEG (5Y)3.36
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 | 4.33 |
F-Score8
WACC9.24%
ROIC/WACC1.19
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 Year5.29%
Revenue Next 2Y4.9%
Revenue Next 3Y4.65%
Revenue Next 5Y4.23%
EBIT growth 1Y11.68%
EBIT growth 3Y8.35%
EBIT growth 5Y5.32%
EBIT Next Year24.65%
EBIT Next 3Y12.91%
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%.