General Dynamics (GD) AI Stock Analysis

• Market Cap: $90.87B
• Dividend Yield: 1.73%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.57
• Revenue Growth: 11.86%
• EPS Growth: 17.39%
• Country: US
• Employees: 110,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 3.88
• Shares Outstanding: 270,120,450
• 10 Day Avg. Volume: 1,274,166
• 30 Day Avg. Volume: 1,078,624
• 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: 1.07
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 12.34
• Enterprise Value/Ebitda: 15.21
• 1Y Price Target: $387.00
• Price Target Upside: 14.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $403.00 ▲(19.46% Upside)

General Dynamics' strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust order backlog and cash flow generation support a positive outlook. However, the high valuation and potential short-term technical corrections are risks to consider.

Positive Factors

Revenue Growth

The substantial year-over-year revenue growth indicates strong demand across key segments, supporting long-term business expansion and market position.

Order Backlog

A robust backlog provides revenue visibility and stability, ensuring sustained operations and strategic planning over the coming years.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for investment in growth initiatives and shareholder returns.

Negative Factors

Technologies Segment Decline

Declining revenue in the Technologies segment may indicate challenges in maintaining competitiveness, potentially affecting future growth in this area.

Supply Chain Challenges

Ongoing supply chain issues can hinder production efficiency and delay project timelines, impacting overall operational performance.

Government Shutdown Concerns

Prolonged government shutdowns can disrupt contract timing and cash flow, posing risks to financial stability and operational continuity.

General Dynamics Business Overview & Revenue Model

Company Description

General Dynamics (GD) is a global aerospace and defense company headquartered in Reston, Virginia. It operates through four main business segments: Aerospace, Combat Systems, Information Technology, and Mission Systems. The company is known for producing a wide range of products and services, including military vehicles, submarines, advanced information technology systems, and business jets. GD serves both government and commercial customers, focusing on delivering innovative solutions that enhance national security and improve operational efficiency.

How the Company Makes Money

General Dynamics generates revenue through multiple key streams, primarily from government contracts and sales to commercial clients. The Aerospace segment contributes significantly to revenue through the production and servicing of business jets and military aircraft. The Combat Systems segment earns money by supplying armored vehicles, munitions, and other defense equipment to military organizations. Information Technology and Mission Systems generate revenue from providing IT services, cybersecurity solutions, and mission support for defense and intelligence agencies. Additionally, strategic partnerships with various government entities and private companies enhance GD's market position, providing a steady flow of contracts and repeat business, thus contributing to its overall earnings.

General Dynamics Financial Statement Overview

Summary

General Dynamics demonstrates strong financial health with consistent revenue growth and profitability. The company has effectively managed its leverage, as seen in the improved debt-to-equity ratio. Cash flow generation is robust, supporting operational and strategic initiatives. However, attention to cost management is necessary to maintain gross profit margins.

Income Statement

General Dynamics has shown consistent revenue growth with a TTM growth rate of 2.46%. The company maintains strong profitability with a net profit margin of 8.18% and an EBIT margin of 10.67%. However, there is a slight decline in gross profit margin from previous years, indicating potential cost pressures.

Balance Sheet

The company has improved its debt-to-equity ratio to 0.33, indicating better leverage management compared to previous years. Return on equity remains strong at 18.27%, showcasing efficient use of equity. However, the equity ratio is not explicitly provided, which limits a complete assessment of asset financing.

Cash Flow

Free cash flow growth is robust at 16.51%, and the free cash flow to net income ratio is healthy at 0.84, indicating strong cash generation relative to net income. The operating cash flow to net income ratio is moderate, suggesting efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.51B	47.72B	42.27B	39.41B	38.47B	37.92B
Gross Profit	7.89B	7.36B	6.67B	6.62B	6.41B	6.33B
EBITDA	6.41B	5.82B	5.25B	5.31B	5.19B	5.11B
Net Income	4.21B	3.78B	3.31B	3.39B	3.26B	3.17B
Balance Sheet
Total Assets	57.60B	55.88B	54.81B	51.59B	50.07B	51.31B
Cash, Cash Equivalents and Short-Term Investments	2.52B	1.70B	1.91B	1.24B	1.60B	2.82B
Total Debt	10.19B	10.68B	11.08B	12.11B	13.18B	14.73B
Total Liabilities	33.16B	33.82B	33.51B	33.02B	32.43B	35.65B
Stockholders Equity	24.43B	22.06B	21.30B	18.57B	17.64B	15.66B
Cash Flow
Free Cash Flow	4.81B	3.20B	3.81B	3.46B	3.38B	2.89B
Operating Cash Flow	5.72B	4.11B	4.71B	4.58B	4.27B	3.86B
Investing Cash Flow	-796.00M	-959.00M	-945.00M	-1.49B	-882.00M	-974.00M
Financing Cash Flow	-4.50B	-3.37B	-3.09B	-3.47B	-4.59B	-903.00M

General Dynamics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 337.34
• 50DMA: Negative
• 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 Negative. The current price of 337.34 is below the 20-day moving average (MA) of 338.47, below the 50-day MA of 340.60, and above the 200-day MA of 303.91, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 33.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GD.

General Dynamics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80 Outperform	$90.87B	21.80	17.78%	1.73%	11.86%	17.39%
NOC	76 Outperform	$80.52B	20.25	26.15%	1.59%	-0.14%	72.35%
RTX	74 Outperform	$237.58B	36.39	10.49%	1.51%	8.79%	39.63%
LMT	70 Outperform	$109.87B	26.50	62.78%	2.81%	2.88%	-35.15%
LHX	70 Neutral	$52.14B	29.93	9.13%	1.72%	2.83%	47.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	54 Neutral	$161.57B	-15.22	―	―	10.19%	-6.03%

General Dynamics Corporate Events

General Dynamics Announces Upcoming Controller Transition

On December 3, 2025, General Dynamics announced that William A. Moss will retire as vice president and controller on March 31, 2026. Dana O. Maisano, with over 20 years at the company and experience in various finance roles, will succeed him as controller on April 1, 2026, potentially impacting the company’s financial operations and continuity.

Danny Deep Appointed President of General Dynamics

On December 3, 2025, Danny Deep, a veteran with over 20 years at General Dynamics, will assume the role of president. His compensation includes a base salary of $1,300,000, with a target annual incentive at 150% of his salary, and a long-term equity-based incentive as outlined in the company’s proxy statement.