General Dynamics (GD) AI Stock Analysis

• Market Cap: $75.34B
• Dividend Yield: 2.05%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.53
• Revenue Growth: 14.11%
• EPS Growth: 17.65%
• Country: US
• Employees: 110,000
• Sector: Industrials
• Sector Strength: 91
• Industry: Aerospace & Defense
• EPS (TTM): 3.66
• Shares Outstanding: 268,396,150
• 10 Day Avg. Volume: 1,121,281
• 30 Day Avg. Volume: 1,591,567
• PEG Ratio: 3.28
• Price to Book (P/B): 3.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.80
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 10.95
• Enterprise Value/Ebitda: 3.78
• 1Y Price Target: $292.33
• Price Target Upside: 4.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

General Dynamics scores well due to strong financial performance and positive earnings call sentiment, driven by significant growth in Aerospace and effective shareholder returns. While the valuation is fair, technical indicators suggest cautious optimism. Challenges like negative free cash flow and tariff uncertainties are notable risks but are outweighed by the company's robust earnings growth and financial health.

Positive Factors

Certification and Demand

G800 achieved FAA certification which is expected to stimulate demand.

Defense and Combat Systems

Solid demand signals from Europe and increased orders on wheeled and tracked vehicles position Combat well.

Technologies Segment Performance

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

Negative Factors

Interest Expense

Higher interest expense could negatively impact earnings, though repurchases might offset this.

Supply Chain Delays

Supply chain delays and quality issues continue to affect the Marine segment.

Tariff Risk

Tariff risk is more pronounced at Aerospace, with the potential impact still unknown.

General Dynamics Business Overview & Revenue Model

Company Description

General Dynamics Corporation is a global aerospace and defense company headquartered in Reston, Virginia. It operates through four main business segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The company is known for its production of Gulfstream business jets, combat vehicles, weapons systems, munitions, C4ISR solutions, and IT services. General Dynamics serves a diverse set of customers, including government and commercial clients, offering a wide range of products and services designed to meet the demands of modern defense and aerospace industries.

How the Company Makes Money

General Dynamics makes money through a diversified revenue model that encompasses multiple key streams across its business segments. The Aerospace segment generates revenue primarily from the sale of Gulfstream business jets and associated aviation services. In the Marine Systems segment, the company earns income by designing and building nuclear-powered submarines and surface combatants for the U.S. Navy. The Combat Systems segment contributes to revenue through the manufacture and supply of combat vehicles, weapons systems, and ammunition to military clients. Lastly, the Technologies segment focuses on generating income by providing IT and mission support services, including communication and information technology solutions, to government and commercial customers. Significant partnerships with the U.S. Department of Defense and other international defense agencies play a critical role in the company's earnings, alongside long-term contracts and a strong backlog of orders.

General Dynamics Financial Statement Overview

Summary

General Dynamics exhibits strong financial health across all verticals. The income statement highlights robust profitability and growth, the balance sheet demonstrates stability with effective leverage management, and the cash flow statement confirms strong cash generation and liquidity. However, careful monitoring of liabilities is advisable to maintain financial stability.

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
	EBIT
5.03B	4.80B	4.25B	4.21B	4.16B	4.13B
	EBITDA
5.88B	5.82B	5.25B	5.31B	5.19B	5.11B
	Net Income Common Stockholders
3.98B	3.78B	3.31B	3.39B	3.26B	3.17B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.24B	1.70B	1.91B	1.24B	1.60B	2.82B
	Total Assets
56.58B	55.88B	54.81B	51.59B	50.07B	51.31B
	Total Debt
11.51B	10.68B	11.08B	10.50B	11.49B	13.00B
	Net Debt
10.27B	8.98B	9.17B	9.25B	9.89B	10.17B
	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: 280.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 280.71 is above the 20-day moving average (MA) of 272.65, above the 50-day MA of 269.03, and above the 200-day MA of 276.14, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 77.88 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
GD	78 Outperform	$75.34B	19.48	18.23%	2.05%	14.11%	17.65%
LMT	77 Outperform	$109.73B	20.23	82.55%	2.75%	3.12%	-15.29%
LHX	76 Outperform	$43.03B	27.28	8.49%	2.03%	5.39%	36.86%
HII	71 Outperform	$9.03B	16.58	12.27%	2.30%	-1.04%	-21.80%
NOC	70 Outperform	$68.10B	18.62	25.41%	1.74%	0.61%	77.28%
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%
BA	52 Neutral	$155.19B	―	-162.23%	―	-9.15%	-406.76%

General Dynamics Corporate Events

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.

Spark’s Take on GD Stock

According to Spark, TipRanks’ AI Analyst, GD is a Outperform.

General Dynamics shows robust financial performance with strong profitability and growth across its segments, especially in Aerospace. Technical indicators and valuation suggest a stable outlook, though the stock is fairly valued. The earnings call confirmed strong growth prospects but highlighted some challenges like negative free cash flow and tariff uncertainties. Overall, the company is well-positioned for future growth, but investors should monitor potential risks.

To see Spark’s full report on GD stock, click here.

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.

Spark’s Take on GD Stock

According to Spark, TipRanks’ AI Analyst, GD is a Outperform.

General Dynamics shows strong financial performance with significant growth in Aerospace and solid profitability. While technical indicators suggest stability, the valuation is fair, offering a reasonable P/E ratio and dividend yield. The earnings call highlights robust growth but also notes challenges like negative free cash flow and tariff uncertainties. Overall, the company is well-positioned but must address these risks to maintain momentum.

To see Spark’s full report on GD stock, click here.