General Dynamics (GD) AI Stock Analysis

• Market Cap: $84.47B
• Dividend Yield: 1.85%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.54
• Revenue Growth: 11.85%
• EPS Growth: 16.12%
• Country: US
• Employees: 110,000
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): 3.74
• Shares Outstanding: 268,993,350
• 10 Day Avg. Volume: 1,097,177
• 30 Day Avg. Volume: 1,169,855
• PEG Ratio: 1.41
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 22.88
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 11.35
• Enterprise Value/Ebitda: 14.10
• 1Y Price Target: $337.31
• Price Target Upside: 6.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: $355.00 ▲(12.40% Upside)

General Dynamics boasts strong financial performance and positive earnings call highlights, which significantly contribute to its overall score. Technical analysis and valuation present a moderate outlook, with positive stock momentum but potential overvaluation risks. The company's strategic financial management and growth in key segments support its strong position in the industry.

Positive Factors

Financial Outlook

General Dynamics raised its sales and earnings per share guidance, reflecting a positive outlook for the company's future performance.

Operational Efficiency

The improved pace of G700 completions and test flights is narrowing completion time and post-completion flight durations.

Order Activity

Marine drives growth, strong order activity.

Negative Factors

Aerospace Margins

Aerospace posted slightly softer than expected margins.

Product Delays

G800 deliveries have not yet started and G400 entry into service may be delayed.

Program Termination

GD's M10 Booker program (Combat Systems) was terminated, impacting annual sales.

General Dynamics Business Overview & Revenue Model

Company Description

General Dynamics (GD) is a global aerospace and defense company headquartered in Falls Church, Virginia. It operates through four main business segments: Aerospace, Combat Systems, Information Technology, and Marine Systems. GD provides a wide range of products and services, including military vehicles, submarines, business jets, and information technology solutions, catering primarily to government and commercial customers worldwide.

How the Company Makes Money

General Dynamics generates revenue through several key streams. Primarily, it earns income from government contracts, which constitute a significant portion of its earnings, particularly in the defense sector. The company provides advanced military technologies and systems to the U.S. Department of Defense and allied nations, ensuring a steady flow of contracts. Additionally, GD's Aerospace segment contributes significantly through the sale and service of business jets, capitalizing on both commercial demand and government contracts. The Combat Systems and Marine Systems divisions also provide specialized vehicles and naval systems that are critical for military operations, further enhancing revenue. Strategic partnerships with government entities and other defense contractors are essential for securing long-term contracts, and collaborations in innovative technology development contribute to enhancing its competitive edge and earnings potential.

General Dynamics Financial Statement Overview

Summary

General Dynamics showcases robust financial performance with strong revenue growth of 5.36% and solid profitability. The balance sheet reflects effective debt management with a declining debt-to-equity ratio, and cash flow metrics indicate efficient cash generation. The company is well-positioned within the aerospace and defense industry with a strong financial foundation.

Income Statement

General Dynamics shows robust financial performance with a strong TTM revenue growth of 5.36% and consistent profitability. The gross profit margin stands at 15.24%, and the net profit margin is healthy at 8.13%. EBIT and EBITDA margins are also strong at 10.30% and 11.96%, respectively, indicating efficient operations. The company demonstrates a solid upward trend in revenues and profits, aligning well with industry dynamics.

Balance Sheet

The balance sheet of General Dynamics reflects a stable financial position with a declining debt-to-equity ratio from 0.47 to 0.37, showcasing effective debt management. The return on equity is impressive at 17.32%, indicating high profitability relative to shareholder equity. The equity ratio is 41.45%, suggesting a balanced asset structure. However, maintaining leverage at current levels would be prudent to mitigate potential risks.

Cash Flow

Cash flow metrics are strong, with an operating cash flow to net income ratio of 1.23, indicating efficient cash generation relative to net income. Free cash flow shows a growth rate of 29.21%, driven by effective capital expenditures management. The free cash flow to net income ratio is 1.01, reflecting solid cash conversion. General Dynamics demonstrates a strong capacity for generating cash, supporting strategic investments and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.27B	47.72B	42.27B	39.41B	38.47B	37.92B
Gross Profit	7.74B	7.36B	6.67B	6.62B	6.41B	6.33B
EBITDA	6.23B	5.82B	5.25B	5.31B	5.19B	5.11B
Net Income	4.09B	3.78B	3.31B	3.39B	3.26B	3.17B
Balance Sheet
Total Assets	56.89B	55.88B	54.81B	51.59B	50.07B	51.31B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.70B	1.91B	1.24B	1.60B	2.82B
Total Debt	10.62B	10.68B	11.08B	12.11B	13.18B	14.73B
Total Liabilities	33.31B	33.82B	33.51B	33.02B	32.43B	35.65B
Stockholders Equity	23.58B	22.06B	21.30B	18.57B	17.64B	15.66B
Cash Flow
Free Cash Flow	4.13B	3.20B	3.81B	3.46B	3.38B	2.89B
Operating Cash Flow	5.03B	4.11B	4.71B	4.58B	4.27B	3.86B
Investing Cash Flow	-869.00M	-959.00M	-945.00M	-1.49B	-882.00M	-974.00M
Financing Cash Flow	-3.99B	-3.37B	-3.09B	-3.47B	-4.59B	-903.00M

General Dynamics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 315.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GD, the sentiment is Positive. The current price of 315.84 is above the 20-day moving average (MA) of 311.59, above the 50-day MA of 296.98, and above the 200-day MA of 274.88, indicating a bullish trend. The MACD of 5.17 indicates Positive momentum. The RSI at 64.62 is Neutral, neither overbought nor oversold. The STOCH value of 74.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GD.

General Dynamics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HII	78 Outperform	$10.52B	20.07	11.59%	2.00%	-1.75%	-29.19%
LHX	77 Outperform	$50.55B	30.17	8.90%	1.74%	2.93%	43.29%
GD	76 Outperform	$84.47B	21.08	17.91%	1.85%	11.85%	16.12%
NOC	71 Outperform	$83.16B	21.36	26.50%	1.45%	-0.65%	77.20%
LMT	64 Neutral	$100.75B	24.30	73.06%	2.98%	1.09%	-35.50%
Sector *	63 Neutral	$10.80B	16.63	7.13%	2.06%	2.21%	-15.91%
BA	56 Neutral	$175.89B	―	-162.23%	―	2.41%	-193.57%

General Dynamics Corporate Events

General Dynamics Promotes Danny Deep to EVP

On June 4, 2025, General Dynamics Corporation announced the promotion of Danny Deep to executive vice president, Global Operations. This strategic move is accompanied by a compensation package that includes a base salary of $1,200,000 and a target annual incentive of 130% of his salary, indicating the company’s commitment to strengthening its leadership team.

The most recent analyst rating on (GD) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on General Dynamics stock, see the GD Stock Forecast page.

General Dynamics Announces Key Leadership Changes

On June 4, 2025, General Dynamics announced several key leadership changes aimed at enhancing operational performance during a period of growth and change. Danny Deep has been promoted to executive vice president, Global Operations, to improve performance across business units. Jason Aiken will now oversee Combat Systems and retain Mission Systems, while Amy Gilliland and Mark Burns have been promoted to executive vice presidents, maintaining their roles as presidents of their respective divisions. These changes are expected to strengthen the company’s operational focus and leadership capabilities.

The most recent analyst rating on (GD) stock is a Buy with a $305.00 price target. To see the full list of analyst forecasts on General Dynamics stock, see the GD Stock Forecast page.