General Dynamics (GD)
Industrials · $94.8B market cap · SEC CIK 0000040533
fundamentals score out of 100
Next reports on Oct 22, 2026, before the open, with analysts expecting $4.25 in earnings per share.
The case for GD
- Revenue growing 9.1% year over year.
- Return on equity of 17%.
- Moves less than the market (beta 0.32).
- Pays a modest 2.1% dividend.
The case against
- Profitability is weak (35/100): return on equity 17%, net margin 8.2%, gross margin 15%, 94% of profit turned to cash.
- Weakest against its peers: net margin of 8% is thinner than 71% of Industrials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 69 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 53 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 35 |
| Momentumhow the price has behaved lately | 50 |
| Stabilityhow violently it moves, what it owes and what it pays you | 88 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 21.1× |
|---|---|
| Price / book | 3.80× |
| Price / sales | 1.7× |
| Revenue growth (YoY) | +9.1% |
| EPS growth (YoY) | +10.1% |
| Gross margin | 15% |
| Operating margin | 10% |
| Net margin | 8% |
| Return on equity | 17% |
| Debt / equity | 0.28× |
| Current ratio | 1.44 |
| Dividend yield | 2.13% |
| Beta | 0.32 |
| 52-week range | $306.77 – $400.00 |
| Position in that range | 39% of the way up |
| 3-month return | +1.1% |
| 1-year return | +9.2% |
Five years of financials, as filed
Pulled from General Dynamics's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $52.5B | $47.7B | $42.3B | $39.4B | $38.5B |
| Operating income | $5.4B | $4.8B | $4.2B | $4.2B | $4.2B |
| Net income | $4.2B | $3.8B | $3.3B | $3.4B | $3.3B |
| Operating cash flow | $5.1B | $4.1B | $4.7B | $4.6B | $4.3B |
| Capital expenditure | $1.2B | $916M | $904M | $1.1B | $887M |
| Total assets | $57.2B | $55.9B | $54.8B | $51.6B | $50.1B |
| Shareholder equity | $25.6B | $22.1B | $21.3B | $18.6B | $17.6B |
| Cash | $2.3B | $1.7B | $1.9B | $1.2B | $1.6B |
| Long-term debt | $7.0B | $7.3B | $8.8B | $9.2B | $10.5B |
| Free cash flow | $4.0B | $3.2B | $3.8B | $3.5B | $3.4B |
| Operating margin | 10.2% | 10.1% | 10.0% | 10.7% | 10.8% |
| Net margin | 8.0% | 7.9% | 7.8% | 8.6% | 8.5% |
| Diluted shares | 272M | 277M | 276M | 278M | 282M |
Share count is down 3.4% over 4 years. Buybacks have been shrinking the pie.
What General Dynamics says it does
(Dollars in millions, unless otherwise noted) BUSINESS OVERVIEW General Dynamics is a global aerospace and defense company that specializes in high-end design, engineering and manufacturing to deliver state-of-the-art solutions to our customers. We offer a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapon systems and munitions; and technology products and services. Our leadership positions in attractive business aviation and defense markets enable us to deliver superior and enduring capabilities to our customers and returns to our shareholders. Our company consists of 10 business units, which are organized into four operating segments: Aerospace, Marine Systems, Combat Systems and Technologies. We refer to the latter three collectively as our defense segments. To ensure market focus, customer intimacy, agility and operating expertise, each business unit is…
Risk factors GD lists in its 10-K
- Risks Relating to Our Business and Industry
- The U.S. government provides a significant portion of our revenue
- U.S. government contracts are not always fully funded at inception, and any funding is subject to disruption or delay
- Government contracts are subject to termination rights by the customer
- Government contractors operate in a highly regulated environment and are subject to audit by the U.S. government
- Our Aerospace segment is subject to changing customer demand for business aircraft
- Earnings and margin depend on our ability to perform on our contracts
- Revenue, earnings and margin depend in part on supplier performance
- Our success depends in part on our ability to develop new products and technologies and maintain a qualified workforce to meet the needs of our customers
- Risks Relating to Our International Operations
- Operations outside the United States are subject to various risks that may be associated with doing business in foreign countries
- Risks Relating to Our Acquisitions and Similar Investment Activities
- We have made and expect to continue to make investments, including acquisitions and joint ventures, that involve risks and uncertainties
- Changes in business conditions may cause goodwill and other intangible assets to become impaired