General Dynamics (GD) AI Stock Analysis

• Market Cap: $84.53B
• Dividend Yield: 1.86%
• Average Volume (3M): 1.26M
• 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: 93
• Industry: Aerospace & Defense
• EPS (TTM): 3.74
• Shares Outstanding: 268,993,350
• 10 Day Avg. Volume: 1,397,405
• 30 Day Avg. Volume: 1,258,054
• PEG Ratio: 6.47
• Price to Book (P/B): 3.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.83
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 14.80
• Enterprise Value/Ebitda: 4.88
• 1Y Price Target: $329.93
• Price Target Upside: 5.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 76 Outperform
• Price Target: $355.00 ▲(13.05%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

Backlog and orders

Backlog ended +14% y/y while a 2.2x B:B was well ahead of peers including B:B in Aero at 1.3x.

Financial outlook and guidance

Shares of General Dynamics are trading up 6% approaching all-time highs after the company reported second-quarter results above consensus and raised its full-year guidance.

Marine division performance

Marine sales rose 22% year-over-year, with improvements attributed to VCS and Columbia projects.

Negative Factors

Aerospace delivery delays

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

Contract award pace

Management highlighted a slower-than-normal pace of contract awards in the first half, although indicated an improvement in the second quarter.

Market uncertainty

Uncertainty exists around Trump's proposed federal and civil budget cuts, which could affect GD's Tech segment.

General Dynamics Business Overview & Revenue Model

Company Description

General Dynamics Corporation is a global aerospace and defense company headquartered in Reston, Virginia. The company operates in four main business segments: Aerospace, Marine Systems, Combat Systems, and Technologies. It is known for producing a wide range of products and services, including business jets, combat vehicles, weapons systems, munitions, information technology services, and shipbuilding.

How the Company Makes Money

General Dynamics generates revenue through a diverse portfolio of products and services offered across its business segments. In the Aerospace segment, the company earns money by designing, manufacturing, and servicing Gulfstream business jets. The Marine Systems segment contributes to revenue through the construction and maintenance of nuclear-powered submarines and other naval ships for military customers. The Combat Systems segment provides income from the sale of combat vehicles, weapons systems, and munitions to various global defense customers. The Technologies segment, which includes Information Technology and Mission Systems, generates revenue through the provision of IT services, communication systems, and other technology solutions to government and commercial clients. Key revenue sources also include long-term contracts with the U.S. Department of Defense and other government agencies, as well as international defense contracts.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.72B	42.27B	39.41B	38.47B	37.92B
Gross Profit	7.36B	6.67B	6.62B	6.41B	6.33B
EBITDA	5.82B	5.25B	5.31B	5.19B	5.11B
Net Income	3.78B	3.31B	3.39B	3.26B	3.17B
Balance Sheet
Total Assets	55.88B	54.81B	51.59B	50.07B	51.31B
Cash, Cash Equivalents and Short-Term Investments	1.70B	1.91B	1.24B	1.60B	2.82B
Total Debt	10.68B	11.08B	10.50B	11.49B	13.00B
Total Liabilities	33.82B	33.51B	33.02B	32.43B	35.65B
Stockholders Equity	22.06B	21.30B	18.57B	17.64B	15.66B
Cash Flow
Free Cash Flow	3.20B	3.81B	3.46B	3.38B	2.89B
Operating Cash Flow	4.11B	4.71B	4.58B	4.27B	3.86B
Investing Cash Flow	-953.00M	-941.00M	-1.49B	-882.00M	-974.00M
Financing Cash Flow	-3.37B	-3.09B	-3.47B	-4.59B	-903.00M

General Dynamics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 314.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 314.02 is above the 20-day moving average (MA) of 300.05, above the 50-day MA of 286.34, and above the 200-day MA of 273.71, indicating a bullish trend. The MACD of 7.16 indicates Negative momentum. The RSI at 72.52 is Negative, neither overbought nor oversold. The STOCH value of 78.00 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
LHX	77 Outperform	$51.08B	30.10	8.90%	1.75%	2.93%	43.29%
GD	76 Outperform	$84.53B	21.10	17.91%	1.86%	11.85%	16.12%
HII	72 Outperform	$10.33B	19.14	12.27%	2.02%	-1.04%	-21.80%
NOC	71 Outperform	$81.40B	20.90	26.50%	1.49%	-0.65%	77.20%
Sector *	65 Neutral	$11.05B	15.76	5.13%	1.92%	3.11%	-24.90%
LMT	64 Neutral	$98.18B	23.61	73.06%	3.10%	1.09%	-35.50%
BA	59 Neutral	$174.38B	―	-162.23%	―	-9.15%	-406.76%

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.

General Dynamics Elects Board at Annual Meeting

At the Annual Meeting of Shareholders on May 7, 2025, General Dynamics Corporation announced the election of its Board of Directors, with all nominees successfully elected. Shareholders also approved KPMG LLP as the independent auditor for 2025 and endorsed the executive compensation plan. However, a proposal for a Human Rights Impact Assessment report was rejected by the shareholders, indicating a focus on maintaining current operational strategies without additional human rights reporting.

General Dynamics Completes $750 Million Notes Sale

On May 7, 2025, General Dynamics Corporation completed the sale of $750 million in 4.950% Notes due 2035, as part of a transaction involving major financial institutions like BofA Securities, J.P. Morgan Securities, and Wells Fargo Securities. This financial move, registered with the SEC, is expected to impact the company’s financial structure and potentially strengthen its market position by securing long-term funding.