General Dynamics Corporation (GD) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Industrials · Aerospace & Defense
Is General Dynamics Corporation a safe investment right now?
General Dynamics Corporation's Altman Z-Score of 4.12 places it in the safe zone. Our fair value estimate is $277.90 (Overvalued). Moat rating: 3.4/5 stars.
Could General Dynamics Corporation go bankrupt? Altman Z-Score analysis
Z-Score of 4.12 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives GD's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.1302 | 1.2 | 0.16 |
| B · Retained Earnings / Total Assets | RE / TA | 0.77 | 1.4 | 1.08 |
| C · EBIT / Total Assets | EBIT / TA | 0.0962 | 3.3 | 0.32 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.7467 | 0.6 | 1.65 |
| E · Revenue / Total Assets | Rev / TA | 0.9179 | 1.0 | 0.92 |
How has GD's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 3.77 | Safe |
| 2023 | 3.75 | Safe |
| 2024 | 3.87 | Safe |
| 2025 | 4.12 | Safe |
Source: Calculated from GD's latest 10-K filing on SEC EDGAR.
What is General Dynamics Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $15.79 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $15.45 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $16.30 | 21 analysts consensus |
| Trailing P/E | 20.8x | Current market pricing |
| Fair P/E (β discount) | 17.6x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Stable | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $393.07 (21 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does General Dynamics Corporation have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up GD's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is GD's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 15.2% | — |
| 2023 | 14.3% | Stable |
| 2024 | 16.0% | Rising |
| 2025 | 16.4% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is General Dynamics Corporation's dividend safe?
Can General Dynamics Corporation afford its dividend?
Payout ratio is 38.8%. FCF covers the dividend 2.5x. 55 consecutive years of payments.
General Dynamics Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $52.5B | $47.7B | $39.4B | Rising |
| Net Income | $4.2B | $3.8B | $3.4B | Rising |
| Free Cash Flow | $4.0B | $3.2B | $3.5B | Rising |
| Gross Margin | 15.1% | 15.4% | 16.8% | Declining |
Recent events that affect our GD analysis
GD earnings report scheduled
Upcoming report. Consensus EPS estimate: $3.69. Revenue estimate: $12.71B. Our current Fair Value: $277.90 — a significant beat or miss could shift this estimate.
GD analyst consensus: 50% bullish (12 of 24 analysts)
3 Strong Buy, 9 Buy, 11 Hold, 1 Sell, 0 Strong Sell. Consensus target: $393.07 (22.6% upside). Compare with our independent Fair Value: $277.90.
GD paid $1.5900/share dividend
Dividend Safety Grade: A. Payout ratio: 38.8%.
GD filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
GD beat EPS estimates by 1.5%
Reported EPS: $4.17 vs estimate $4.11. Earnings strength supports our Fair Value of $277.90 (13.4% below current price).
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD paid $1.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 38.8%.
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD beat EPS estimates by 4.3%
Reported EPS: $3.88 vs estimate $3.72. Earnings strength supports our Fair Value of $277.90 (13.4% below current price).
GD filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD paid $1.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 38.8%.
GD beat EPS estimates by 5.6%
Reported EPS: $3.74 vs estimate $3.54. Earnings strength supports our Fair Value of $277.90 (13.4% below current price).
GD filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD paid $1.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 38.8%.
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD beat EPS estimates by 5.7%
Reported EPS: $3.66 vs estimate $3.46. Earnings strength supports our Fair Value of $277.90 (13.4% below current price).
GD filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD paid $1.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 38.8%.
GD filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
GD beat EPS estimates by 2.7%
Reported EPS: $4.15 vs estimate $4.04. Earnings strength supports our Fair Value of $277.90 (13.4% below current price).
GD filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GD paid $1.4200/share dividend
Dividend Safety Grade: A. Payout ratio: 38.8%.
Common questions about General Dynamics Corporation
What is General Dynamics Corporation stock price today?
General Dynamics Corporation (GD) stock price is $320.74 as of the latest market close, traded on the NYSE exchange.
What does General Dynamics Corporation 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 produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support, customer support and custom completion services, modifications, upgrades, and lifecycle sustainment support services.
What is General Dynamics Corporation market cap?
General Dynamics Corporation has a market capitalization of $86.87B, classifying it as a large-cap stock in the Industrials sector.
What sector and industry is GD in?
General Dynamics Corporation operates in the Industrials sector, specifically within the Aerospace & Defense industry. It trades on the NYSE under the ticker symbol GD.
Is GD stock overvalued or undervalued?
Based on our valuation model, General Dynamics Corporation trades 15.4% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $277.90
- Current Price: $320.74
- Valuation Zone: Overvalued
What is GD stock forecast and analyst target price?
Based on 21 Wall Street analysts, the consensus price target for General Dynamics Corporation is $393.07, implying upside of 22.6% from the current price.
- Analyst High Target: $444.00
- Analyst Low Target: $327.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is General Dynamics Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for General Dynamics Corporation:
- Revenue growth (current year est.): 4.3%
- EPS growth (current year est.): 5.5%
- Revenue growth (next year est.): 4.5%
- EPS growth (next year est.): 10.7%
What are General Dynamics Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $52.5B | Rising |
| Net Income | $4.2B | Rising |
| Free Cash Flow | $4.0B | Rising |
| Gross Margin | 15.1% | Declining |
What is GD's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 20.8x
- Forward P/E (next 12 months est.): 17.8x
- FairValueLabs Fair P/E: 17.6x
How volatile is GD stock?
General Dynamics Corporation has a beta of 0.39, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does General Dynamics Corporation have?
General Dynamics Corporation's balance sheet shows:
- Total Cash: $2.33B
- Total Debt: $9.79B
- Net Cash Position: $-7.46B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is General Dynamics Corporation's free cash flow?
General Dynamics Corporation generated $3.36B in trailing twelve-month free cash flow (from $5.11B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does General Dynamics Corporation pay a dividend, and is it safe?
Yes, General Dynamics Corporation pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.8%
- Payout Ratio: 38.8%
- Consecutive Years Paid: 55
- 5-Year Dividend Growth: -7.9%
- FairValueLabs Safety Grade: A
Is General Dynamics Corporation at risk of going bankrupt?
General Dynamics Corporation's Altman Z-Score is 4.12, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does General Dynamics Corporation have a durable competitive advantage?
General Dynamics Corporation scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is GD's return on equity (ROE)?
General Dynamics Corporation's return on equity is 17.7%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy GD stock?
GD shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol GD
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is GD a value stock or speculative?
FairValueLabs classifies General Dynamics Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of General Dynamics Corporation?
The current CEO of General Dynamics Corporation is Ms. Phebe N. Novakovic.
What is GD's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $15.46
- Forward EPS (next 12 months est.): $17.97
- Analyst consensus EPS (this year): $16.30
- Analyst consensus EPS (next year): $18.05
Other Industrials companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
GD analysis methodology: How we calculate fair value, Z-Scores, and moat ratings