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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
15.6%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.78%
Trailing Yield
$1.78
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
42%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, GENERAL DYNAMICS CORP (GD) receives a "Hold" rating with a composite score of 53.3/100, ranked #693 out of 4446 stocks. Key factor scores: Quality 50/100, Value 62/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
GENERAL DYNAMICS CORP (GD) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does GENERAL DYNAMICS CORP Do?
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. GENERAL DYNAMICS CORP (GD) is classified as a large-cap stock in the Industrials sector, specifically within the Shipbuilding, Railroad Equipment industry. The company is led by CEO Phebe N. Novakovic and employs approximately 106,500 people, headquartered in Falls Church, Virginia. With a market capitalization of $94.9B, GD is one of the prominent companies in the Industrials sector.
GENERAL DYNAMICS CORP (GD) Stock Rating — Hold (April 2026)
As of April 2026, GENERAL DYNAMICS CORP receives a Hold rating with a composite score of 53.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.GD ranks #693 out of 4,446 stocks in our coverage universe. Within the Industrials sector, GENERAL DYNAMICS CORP ranks #119 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
GD Stock Price and 52-Week Range
GENERAL DYNAMICS CORP (GD) currently trades at $335.15. The stock lost $8.75 (2.5%) in the most recent trading session. The 52-week high for GD is $369.70, which means the stock is currently trading -9.3% from its annual peak. The 52-week low is $239.20, putting the stock 40.1% above its annual trough. Recent trading volume was 1.7M shares, reflecting moderate market activity.
Is GD Overvalued or Undervalued? — Valuation Analysis
GENERAL DYNAMICS CORP (GD) carries a value factor score of 62/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 23.72x, compared to the Industrials sector average of 28.33x — a discount of 16%. The price-to-book ratio stands at 3.70x, versus the sector average of 2.23x. The price-to-sales ratio is 1.90x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, GD trades at 17.87x EV/EBITDA, versus 5.70x for the sector.
Overall, GD's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
GENERAL DYNAMICS CORP Profitability — ROE, Margins, and Quality Score
GENERAL DYNAMICS CORP (GD) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 15.6%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 7.0% versus the sector average of 3.3%.
On a margin basis, GENERAL DYNAMICS CORP reports gross margins of 15.3%, compared to 35.8% for the sector. The operating margin is 10.2% (sector: 6.2%). Net profit margin stands at 8.0%, versus 3.9% for the average Industrials stock. Revenue growth is running at 7.8% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
GD Debt, Balance Sheet, and Financial Health
GENERAL DYNAMICS CORP has a debt-to-equity ratio of 32.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.44x, suggesting adequate working capital coverage. Total debt on the balance sheet is $8.07B. Cash and equivalents stand at $2.33B.
GD has a beta of 0.57, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for GENERAL DYNAMICS CORP is 92/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
GENERAL DYNAMICS CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, GENERAL DYNAMICS CORP reported revenue of $49.84B and earnings per share (EPS) of $15.65. Net income for the quarter was $4.00B. Operating income came in at $5.08B.
In FY 2025, GENERAL DYNAMICS CORP reported revenue of $52.55B and earnings per share (EPS) of $15.65. Net income for the quarter was $4.21B. Revenue grew 10.1% year-over-year compared to FY 2024. Operating income came in at $5.36B.
In Q3 2025, GENERAL DYNAMICS CORP reported revenue of $12.91B. Net income for the quarter was $1.06B. Revenue grew 10.6% year-over-year compared to Q3 2024. Operating income came in at $1.33B.
In Q2 2025, GENERAL DYNAMICS CORP reported revenue of $13.04B. Net income for the quarter was $1.01B. Revenue grew 8.9% year-over-year compared to Q2 2024. Operating income came in at $1.30B.
Over the past 8 quarters, GENERAL DYNAMICS CORP has demonstrated a growth trajectory, with revenue expanding from $11.98B to $49.84B. Investors analyzing GD stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
GD Dividend Yield and Income Analysis
GENERAL DYNAMICS CORP (GD) currently pays a dividend yield of 1.8%. At this yield, a $10,000 investment in GD stock would generate approximately $$178.00 in annual dividend income. The net margin of 8.0% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
GD Momentum and Technical Analysis Profile
GENERAL DYNAMICS CORP (GD) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 35/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
GD vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing GD against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full GD vs S&P 500 (SPY) comparison to assess how GENERAL DYNAMICS CORP stacks up against the broader market across all factor dimensions.
GD Next Earnings Date
No upcoming earnings date has been announced for GENERAL DYNAMICS CORP (GD) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy GD? — Investment Thesis Summary
GENERAL DYNAMICS CORP presents a balanced picture with arguments on both sides. The value score of 62/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 92/100) reduces downside risk.
In summary, GENERAL DYNAMICS CORP (GD) earns a Hold rating with a composite score of 53.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on GD stock.
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Institutional Research Dossier
GENERAL DYNAMICS CORP (GD) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on General Dynamics (GD). The company's strong position within the defense industry, particularly in shipbuilding and combat systems, provides a degree of stability and predictable revenue streams. However, the current valuation appears to reflect these strengths, leaving limited upside potential given the moderate growth outlook and inherent risks associated with government contracting.
While GD boasts impressive operating margins and a lower debt-to-equity ratio compared to its sector, its relatively lower gross margin and dependence on government spending create vulnerabilities. Investors should carefully weigh the company's strengths against these potential headwinds before considering a significant investment.
Business Strategy & Overview
General Dynamics operates across four key segments: Aerospace, Marine Systems, Combat Systems, and Technologies. This diversification provides a degree of resilience, mitigating the impact of potential downturns in any single segment. The Aerospace segment, primarily focused on Gulfstream business jets, caters to the high-end market, offering a degree of pricing power and higher margins compared to commercial aviation. However, this segment is also sensitive to economic cycles and discretionary spending.
The Marine Systems segment, responsible for building nuclear-powered submarines and surface combatants for the U.S. Navy, represents a significant portion of GD's revenue and backlog. This segment benefits from long-term contracts and the high barriers to entry in naval shipbuilding. The Combat Systems segment focuses on land combat vehicles and weapons systems, serving both domestic and international customers. This segment is subject to geopolitical factors and defense spending priorities.
The Technologies segment provides IT solutions and mission support services to government clients. This segment is increasingly important as defense spending shifts towards cybersecurity, intelligence, and advanced technologies. GD's strategy involves leveraging its existing relationships with government agencies to secure contracts in these growth areas. The company also focuses on strategic acquisitions to expand its capabilities and market share in key segments.
GD's overall strategy is centered on maintaining its position as a leading defense contractor by delivering high-quality products and services, fostering strong relationships with government customers, and investing in research and development to stay ahead of technological advancements. The company's focus on operational efficiency and cost control further enhances its competitiveness. However, the reliance on government contracts exposes GD to political and budgetary uncertainties.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
7.8%
Sector: 6.4%
+22% VS SCTR
Economic Moat Analysis
General Dynamics possesses a narrow economic moat, primarily derived from intangible assets and switching costs. The company's reputation for quality and reliability in shipbuilding, particularly in the construction of nuclear-powered submarines, creates a significant barrier to entry for potential competitors. This reputation, built over decades of experience and successful project execution, is difficult to replicate.
The high switching costs associated with defense contracts also contribute to GD's moat. Government agencies are often reluctant to switch contractors due to the complexity of defense projects, the potential for delays and cost overruns, and the need for specialized expertise. This creates a degree of customer stickiness and provides GD with a competitive advantage in bidding for new contracts and renewing existing ones.
While GD benefits from these advantages, its moat is not wide due to the nature of government contracting. The bidding process is often highly competitive, and contracts are typically awarded based on price and technical capabilities. This limits GD's ability to consistently earn above-average returns on capital. Furthermore, the government has the power to regulate prices and terms, which can erode GD's profitability.
The company's reliance on government spending also makes it vulnerable to changes in defense budgets and political priorities. A shift in government policy or a reduction in defense spending could significantly impact GD's revenue and earnings. Therefore, while GD possesses certain competitive advantages, its moat is not as durable or sustainable as those of companies with more diversified revenue streams and less reliance on government contracts.
Financial Health & Profitability
General Dynamics exhibits a solid financial profile, characterized by consistent revenue growth and strong profitability. The company's revenue has steadily increased over the past few years, driven by growth in its Aerospace, Marine Systems, and Technologies segments. The recent TTM revenue of $52.55 billion represents a significant increase from $47.72 billion in the prior year and $42.27 billion the year before, indicating a healthy growth trajectory. This growth is further reflected in the quarterly financial history, with consistent revenue increases across the quarters.
GD's operating margin of 10.2% is relatively stable and compares favorably to the sector average of 6.2%. This indicates efficient cost management and a strong ability to generate profits from its operations. The net margin of 8.0% also exceeds the sector average of 3.7%, further highlighting GD's superior profitability. However, the gross margin of 15.3% is significantly lower than the sector average of 35.8%, suggesting potential areas for improvement in cost of goods sold.
The company's balance sheet is also relatively strong, with total cash of $2.33 billion and total debt of $8.07 billion. The current ratio of 1.44 indicates a healthy level of liquidity and the ability to meet its short-term obligations. The debt-to-equity ratio of 32.00 is significantly lower than the sector average of 70.00, indicating a conservative approach to leverage. The ROE of 15.6% is also higher than the sector average of 9.2%, demonstrating efficient use of equity to generate profits.
While free cash flow data is unavailable, the consistent profitability and strong operating margins suggest that GD is likely generating healthy cash flows from its operations. Overall, GD's financial health is robust, characterized by consistent revenue growth, strong profitability, and a conservative balance sheet. However, the lower gross margin compared to the sector warrants further investigation.
Valuation Assessment
General Dynamics' valuation appears to be fair, considering its financial performance and industry position. The company's P/E ratio of 22.1x is lower than the sector average of 27.7x, suggesting that it may be undervalued relative to its peers. However, this difference may be justified by GD's moderate growth outlook and the inherent risks associated with government contracting.
The EV/EBITDA ratio of 4.0x is also lower than the sector average of 5.7x, further supporting the argument that GD is relatively undervalued. This metric takes into account the company's debt and cash positions, providing a more comprehensive view of its valuation. However, it's important to note that EV/EBITDA can be influenced by accounting practices and capital structure decisions.
Without free cash flow data, it is difficult to assess the company's valuation using a discounted cash flow analysis. However, based on the available metrics, GD's valuation appears to be reasonable. The stock is not significantly overvalued or undervalued, suggesting that the market has already priced in its strengths and weaknesses.
Given the current valuation, investors should carefully consider GD's growth prospects and risk factors before making an investment decision. While the company's strong financial performance and industry position provide a degree of downside protection, the limited upside potential may not be attractive to all investors. A Hold rating is appropriate, reflecting the balanced risk-reward profile.
Risk & Uncertainty
General Dynamics faces several key risks, primarily related to its reliance on government contracts and the cyclical nature of its Aerospace segment. Changes in government spending priorities, defense budgets, or political relations could significantly impact GD's revenue and earnings. A reduction in defense spending or a shift in government policy towards alternative defense contractors could negatively affect GD's contract wins and backlog.
The Aerospace segment is sensitive to economic cycles and discretionary spending. A recession or economic slowdown could lead to a decline in demand for business jets, impacting GD's revenue and profitability in this segment. Furthermore, increased competition from other business jet manufacturers could put pressure on prices and margins.
GD also faces operational risks associated with complex defense projects. Delays, cost overruns, or technical failures could result in penalties, contract cancellations, or reputational damage. The company's ability to effectively manage these risks is crucial to its long-term success. Cybersecurity threats and data breaches also pose a significant risk, as GD handles sensitive information related to national security.
Finally, regulatory changes and compliance requirements could increase GD's operating costs and impact its profitability. Changes in environmental regulations, labor laws, or export controls could create additional challenges for the company. The ongoing geopolitical instability and potential for armed conflicts also present both opportunities and risks for GD. While increased defense spending could benefit the company, armed conflicts could also disrupt its supply chains and operations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWGeneral Dynamics' dominant position in naval shipbuilding, particularly nuclear submarines, ensures a steady stream of revenue for decades to come, supported by strong government backing.
BULL VIEWThe company's diversified portfolio across aerospace, combat systems, and technologies provides resilience against economic downturns and shifts in defense spending priorities.
BULL VIEWGD's consistent profitability and strong balance sheet allow for continued investment in research and development, maintaining its technological edge and competitive advantage.
The Bear Case
BEAR VIEWGeneral Dynamics' heavy reliance on government contracts exposes it to political risks and budgetary pressures, potentially leading to reduced revenue and earnings.
BEAR VIEWThe cyclical nature of the Aerospace segment makes GD vulnerable to economic downturns, which could significantly impact its overall financial performance.
BEAR VIEWIncreased competition in the defense industry and potential for contract disputes could erode GD's profitability and market share.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score GD and 4,400+ other equities.
GENERAL DYNAMICS CORP exhibits a 136% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
7.0%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
15.3%
Sector: 35.8%
Operating Margin
Core business profitability
10.2%
Sector: 6.2%
Net Margin
Bottom-line profitability
8.0%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $178 annually in dividends at the current trailing rate.
