General Dynamics (GD) AI Stock Analysis

• Market Cap: $79.11B
• Dividend Yield: 2.04%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.53
• Revenue Growth: 14.11%
• EPS Growth: 17.65%
• Country: US
• Employees: 110,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Aerospace & Defense
• EPS (TTM): 3.66
• Shares Outstanding: 268,396,150
• 10 Day Avg. Volume: 1,450,776
• 30 Day Avg. Volume: 1,117,064
• PEG Ratio: 3.37
• Price to Book (P/B): 3.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.38
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 11.20
• Enterprise Value/Ebitda: 3.87
• 1Y Price Target: $296.38
• Price Target Upside: 0.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 79 Outperform
• Price Target: $318.00 ▲(7.88%Upside)

General Dynamics' overall score is driven by strong financial performance and a positive earnings call, underscoring robust growth in key segments. While technical indicators and valuation are moderate, recent leadership changes further enhance the company's strategic position. Challenges such as tariff uncertainties and negative free cash flow require attention, but the company's fundamentals remain solid.

Positive Factors

Aircraft Certification

G800 achieved FAA certification in the quarter and GD sees this stimulating demand from here.

Defense Demand

Combat seen as well positioned given solid demand signals from Europe, increased munitions capacity, and increased orders on wheeled and tracked vehicles.

Technologies Performance

Technologies was a notable standout in the quarter with sales and margins exceeding estimates.

Negative Factors

Interest Expense

It looks like GD could incur higher interest expense for the year, though the earnings impact could be offset by continued repurchases not yet baked into guidance.

Profitability Challenges

Profitability will remain pressured by execution challenges.

Supply Chain Issues

GD continued to call out supply chain delays and quality issues at Marine.

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 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 demonstrates strong financial health with robust profitability, effective leverage management, and solid cash flow generation. Key metrics such as a healthy profit margin, strong ROE, and positive free cash flow growth highlight this stability, although high total liabilities warrant careful monitoring.

Income Statement

General Dynamics shows strong profitability with consistent growth in revenue and net income over the years. The TTM gross profit margin is healthy at 15.41%, and the net profit margin stands at 10.75%. Revenue has grown steadily, reflected by a 4.13% increase from 2023 to 2024. The EBIT margin is robust at 13.60%, and EBITDA margin at 15.24%, indicating efficient operations. Overall, the income statement reflects a well-performing company with upward growth trends.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio of 0.43, showing a prudent leverage strategy. The equity ratio of 39.28% indicates a stable capital structure. ROE is strong at 17.89%, demonstrating effective use of shareholder funds. However, the high total liabilities relative to stockholders' equity could pose a future risk if not managed carefully. Overall, the balance sheet reflects financial stability and effective equity utilization.

Cash Flow

Cash flow generation is strong, with a positive free cash flow growth rate of 4.61% from 2023 to 2024. The operating cash flow to net income ratio is 1.07, indicating that the company is effectively converting income into cash. The free cash flow to net income ratio of 0.84 reflects ample liquidity to support operations and investments. Overall, the cash flow statement shows healthy cash management and sufficient liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.21B	47.72B	42.27B	39.41B	38.47B	37.92B
Gross Profit	7.59B	7.36B	6.67B	6.62B	6.41B	6.33B
EBITDA	5.88B	5.82B	5.25B	5.31B	5.19B	5.11B
Net Income	3.98B	3.78B	3.31B	3.39B	3.26B	3.17B
Balance Sheet
Total Assets	56.58B	55.88B	54.81B	51.59B	50.07B	51.31B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.70B	1.91B	1.24B	1.60B	2.82B
Total Debt	11.51B	10.68B	11.08B	10.50B	11.49B	13.00B
Total Liabilities	34.35B	33.82B	33.51B	33.02B	32.43B	35.65B
Stockholders Equity	22.23B	22.06B	21.30B	18.57B	17.64B	15.66B
Cash Flow
Free Cash Flow	3.34B	3.20B	3.81B	3.46B	3.38B	2.89B
Operating Cash Flow	4.24B	4.11B	4.71B	4.58B	4.27B	3.86B
Investing Cash Flow	-903.00M	-953.00M	-941.00M	-1.49B	-882.00M	-974.00M
Financing Cash Flow	-3.13B	-3.37B	-3.09B	-3.47B	-4.59B	-903.00M

General Dynamics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 294.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 294.76 is above the 20-day moving average (MA) of 282.05, above the 50-day MA of 276.59, and above the 200-day MA of 273.30, indicating a bullish trend. The MACD of 4.86 indicates Negative momentum. The RSI at 71.43 is Negative, neither overbought nor oversold. The STOCH value of 92.53 is Negative, 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
LMT	80 Outperform	$108.37B	19.98	82.55%	2.85%	3.12%	-15.29%
GD	79 Outperform	$79.11B	20.46	18.23%	2.04%	14.11%	17.65%
LHX	76 Outperform	$47.81B	30.31	8.49%	1.89%	5.39%	36.86%
NOC	74 Outperform	$72.57B	19.84	25.41%	1.85%	0.61%	77.28%
HII	72 Outperform	$9.89B	18.17	12.27%	2.16%	-1.04%	-21.80%
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
BA	59 Neutral	$162.80B	―	-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.