GD

GENERAL DYNAMICS CORP

Industrials • CIK: 0000040533

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Market Cap
$94.03B
P/E (TTM)
21.7x
Rev Growth (TTM)
+9.3%
Net Margin (TTM)
8.1%
FCF Yield (TTM)
6.6%
FCF Margin (TTM)
11.5%

LATEST EARNINGS

Q1 2026
19 days ago
View source
Revenue
$13.48B
+10.3%
Net Income
$1.13B
+13.2%
EPS
N/A
Operating
10.5% +0.1%
Net
8.3% +0.2%
  • Revenue increased 10.3% year-over-year to $13.5 billion, with growth in all four segments.
  • Diluted EPS grew 12% year-over-year to $4.10.
  • Operating margin improved to 10.5% from 10.4% in the prior year's quarter.
  • Net cash provided by operating activities was $2.2 billion, representing 192% of net earnings, indicating strong cash conversion.

Cash Flow Health

Free Cash Flow7/8 positive
TTM$6.2B
Q1 '26
$2.0B+105%
Q4 '25
$952M-50%
FCF Margin
TTM11.5%
Q1 '2614.5%+119%
Sector: 4.7%Top 25%
OCF Margin13.8%
OCF/NI1.71x
CapEx Coverage6.1x
FCF Yield6.6%
FCF Growth (2Y)+28%
Cash Conversion Cycle
181 days
DSO: 21+DIO: 236DPO: 76

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM2.0%
Div Yield1.7%
+
Buyback (TTM)0.3%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)1.7%
FCF Payout Ratio25.9%
Free Cash Flow (TTM)$6.2B
Stock Repurchases (TTM)$254.0M
Capital Return / FCF29.9%
Est. Dividends Paid (TTM)$1.6B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
12.4%
Stable
+0.0% YoY+1.1%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
8.4%
8Q: 8.5%
Asset Turnover
0.94x
8Q: 0.91x
Leverage (1+D/E)
1.31x
D/E: 0.31x
DuPont: 10.3%12.4% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
7.78x
8Q:7.77x
-7.7%
Invested Cap Turn
1.47x
8Q:1.43x
+10.5%
CapEx Intensity
3.3%
8Q:2.3%
CapEx/Depreciation
1.31x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$53.8B
$13.5B6.2%
$14.4B11.4%
$12.9B1.0%
$13.0B6.7%
$12.2B8.4%
$13.3B14.3%
$11.7B2.5%
$12.0B
Operating Income
$5.5B
$1.4B2.2%
$1.5B9.1%
$1.3B2.0%
$1.3B2.9%
$1.3B10.9%
$1.4B20.5%
$1.2B2.2%
$1.2B
Net Income
$4.3B
$1.1B1.6%
$1.1B7.9%
$1.1B4.4%
$1.0B2.0%
$994.0M13.4%
$1.1B23.4%
$930.0M2.8%
$905.0M
Operating Cash Flow
$7.4B
$2.2B38.1%
$1.6B26.0%
$2.1B32.0%
$1.6B1179.7%
$-148.0M106.9%
$2.2B52.5%
$1.4B74.0%
$814.0M
Free Cash Flow
$6.2B
$2.0B105.0%
$952.0M49.8%
$1.9B35.5%
$1.4B582.8%
$-290.0M116.1%
$1.8B48.6%
$1.2B98.2%
$613.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
21.7x
Volatile
8Q: 81.7x-49%
Valuation Lenses
Earnings
21.7x
vs sector
Cash Flow
16.2x
EV/FCF vs
Growth-Adj
2.1xPEG
Expensive for growth
Quality-Adj
1.7P/E per %ROIC
ROIC: 12.4%
Shareholder Returns
Dividend
1.7%
Buyback
0.3%
Total Yield
2.0%
Market Cap$94.03B
EV$100.22B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
89/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
17.8%
8Q:
Return on Invested Capital (ROIC)Top 25%
12.4%
8Q:
Flat
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 8.4%
Asset Turnover: 0.94x

Earnings Quality

Cash Conversion

1.71x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin72.3%

Capital Efficiency

Invested Capital Turnover1.47x

Working Capital

Cash Conversion Cycle181 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
69/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
9.3%
OpInc Growth YoY
12.0%
EPS Growth YoY
10.4%
FCF 3Y CAGR
28.3%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
72.3%
Operating
10.2%
Above Avg in sector
Net
8.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+3.5 pts
FCF: 11.5% | Net: 8.1%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $4.36B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.31x
Balance sheet risk & solvency analysis