General Dynamics (GD) AI Stock Analysis

• Market Cap: $86.79B
• Dividend Yield: 1.8%
• Average Volume (3M): 949.10K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.53
• Revenue Growth: 11.85%
• EPS Growth: 16.12%
• Country: US
• Employees: 110,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 3.74
• Shares Outstanding: 268,993,350
• 10 Day Avg. Volume: 1,186,842
• 30 Day Avg. Volume: 949,104
• 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: 1.01
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 11.35
• Enterprise Value/Ebitda: 14.10
• 1Y Price Target: $340.13
• Price Target Upside: 5.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 79 Outperform
• Price Target: $359.00 ▲(10.93% Upside)

General Dynamics receives a strong overall score of 79, driven primarily by its robust financial performance and positive earnings call sentiment. The technical analysis supports a bullish outlook, while the valuation is reasonable. The company's strategic positioning and operational achievements in key segments further bolster its investment appeal.

Positive Factors

Revenue Growth

Consistent revenue growth across multiple segments indicates strong market demand and effective business strategies, supporting long-term expansion.

Order Activity

Robust order activity and a high book-to-bill ratio suggest sustained demand and future revenue stability, strengthening market position.

Cash Flow Generation

Strong cash flow generation supports strategic investments and shareholder returns, enhancing financial flexibility and long-term growth potential.

Negative Factors

Supply Chain Challenges

Ongoing supply chain issues can disrupt production schedules and increase costs, potentially impacting profitability and operational efficiency.

Marine Group Margin Pressure

Margin pressures in key segments like Marine Systems can affect overall profitability, necessitating efficiency improvements for sustained earnings.

Aerospace Margin Volatility

Volatility in aerospace margins due to product mix and volume changes could hinder profit stability, requiring strategic adjustments to maintain margins.

General Dynamics Business Overview & Revenue Model

Company Description

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment designs, manufactures, and sells business jets; and offers aircraft maintenance and repair, management, charter, aircraft-on-ground support and completion, staffing, and fixed-base operator services. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy and Jones Act ships for commercial customers, as well as builds crude oil and product tankers, and container and cargo ships. This segment also provides navy ships maintenance and modernization services; lifecycle support and repair services for navy surface ships; and program management, planning, engineering, and design support services for submarines and surface ships. The Combat Systems segment manufactures land combat solutions, such as wheeled and tracked combat vehicles, Stryker wheeled combat vehicles, piranha vehicles, weapons systems, munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, armored vehicles, and armaments. This segment also offers modernization programs, engineering, support, and sustainment services. The Technologies segment provides information technology solutions and mission support services; mobile communication, computers, and command-and-control mission systems; and intelligence, surveillance, and reconnaissance solutions to military, intelligence, and federal civilian customers. This segment also offers cloud computing, artificial intelligence; machine learning; big data analytics; development, security, and operations; software-defined networks; everything-as-a-service; defense enterprise office system solutions; and unmanned undersea vehicle manufacturing and assembly services. General Dynamics Corporation was founded in 1899 and is headquartered in Reston, Virginia.

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: 323.62
• 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 323.62 is below the 20-day moving average (MA) of 324.35, above the 50-day MA of 317.17, and above the 200-day MA of 279.67, indicating a neutral trend. The MACD of 2.12 indicates Positive momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 25.02 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
GD	79 Outperform	$86.79B	21.67	17.91%	1.80%	11.85%	16.12%
HII	77 Outperform	10.89B	20.67	10.75%	1.95%	-1.75%	-29.19%
NOC	77 Outperform	83.94B	21.22	25.50%	1.49%	-0.65%	77.20%
LHX	75 Outperform	53.13B	31.95	8.80%	1.68%	2.93%	43.29%
LMT	71 Outperform	113.52B	27.40	78.82%	2.71%	1.09%	-35.50%
BA	45 Neutral	162.65B	-13.02	324.22%	―	2.41%	-193.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.

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.