GENERAL DYNAMICS CORP (GD) Stock Analysis

Analysis from 10-Q filed 2025-10-24. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 12.4%. FCF margin 11.5%. D/E 0.3x. Source: 10-Q filed 2025-10-24.

Metric	Value	Context
ROIC	12.4%	Solid returns
FCF Margin	11.5%	Healthy cash flow
Debt/Equity	0.3x	Conservative leverage

ROIC 12.4% — Top 50% of sector peers. FCF margin 11.5% — Top 25%.

Explore GENERAL DYNAMICS CORP: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for GD: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: GENERAL DYNAMICS CORP earns 12.4% ROIC, Top 50% in Industrials

ROIC TTM 12.4%, sector median 7.3%, Top 50%. DuPont: NOPAT margin 8.4% × asset turnover 0.9x. Gross margin 72.3%. Operating margin 10.2%. Source: 10-Q filed 2025-10-24.

Metric	GD	Rating	Context
Return on Invested Capital (ROIC)	12.4%	Good	Above sector median of 7.3%
Return on Equity (ROE)	17.8%	Good	Efficient use of shareholder equity
Gross Margin	72.3%	Excellent	Strong pricing power
Operating Margin	10.2%	Good	Moderate operational efficiency

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Cash Flow: GENERAL DYNAMICS CORP generates $6.2B FCF at 11.5% margin, positive NaN/8 quarters

FCF TTM $6.2B. FCF margin 11.5%, Top 25%. OCF/Net income 1.7x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-24.

Metric	GD	Rating	Context
Free Cash Flow Margin	11.5%	Good	Healthy cash generation
Free Cash Flow (TTM)	$6.2B	Good	Positive cash generation
OCF/Net Income	1.7x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: GENERAL DYNAMICS CORP at 0.3x leverage

Debt/Equity 0.3x. Total debt $8.0B, cash & investments $3.7B. Source: 10-Q filed 2025-10-24.

Metric	GD	Rating	Context
Debt to Equity	0.3x	Good	Conservative capital structure
Net Cash Position	$-4.4B	Warning	Net debt position

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Valuation: GENERAL DYNAMICS CORP trades at 21.7x earnings

P/E 21.7x. EV/Sales 1.9x. FCF yield 6.6%. Dividend yield 1.7%. Source: 10-Q filed 2025-10-24.

Metric	GD	Rating	Context
P/E Ratio	21.7x	Adequate	Premium valuation
EV/Sales	1.9x	Excellent	Attractive revenue multiple
FCF Yield	6.6%	Good	Attractive cash return
Dividend Yield	1.7%	Adequate	Growth focus over income

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Capital Allocation: GENERAL DYNAMICS CORP returns 2.0% shareholder yield

Total shareholder yield 2.0% (div 1.7% + buyback 0.3%). Capital returned $1.9B TTM. Source: 10-Q filed 2025-10-24.

Metric	GD	Rating	Context
Total Shareholder Yield	2.0%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.3%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$1.9B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	12.4%	Top 50%	1.7x above
Free Cash Flow Margin	11.5%	Top 25%	2.4x above
Gross Margin	72.3%	Top 5%	2.2x above
Operating Margin	10.2%	Top 50%	1.4x above
Return on Equity (ROE)	17.8%	Top 50%	2.0x above
P/E Ratio	21.7x	N/A	-

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Financial Scorecard

Metric	GD	Rating	Sector Context
Return on Invested Capital (ROIC)	12.4%	Good	Top 50% of sector (median: 7.3%)
Free Cash Flow Margin	11.5%	Good	Top 25% of sector (median: 4.8%)
Gross Margin	72.3%	Excellent	Top 5% of sector (median: 33.1%)
Debt to Equity Ratio	30.7%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	21.7x	Adequate	Fair value
Free Cash Flow Yield	6.6%	Good	Solid cash yield

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Frequently Asked Questions

Q: What is GENERAL DYNAMICS CORP's Return on Invested Capital (ROIC)?

GENERAL DYNAMICS CORP (GD) has a trailing twelve-month Return on Invested Capital (ROIC) of 12.4%. Sector median 7.3%. Source: 10-Q filed 2025-10-24.

Q: What is GENERAL DYNAMICS CORP's Free Cash Flow Margin?

GENERAL DYNAMICS CORP (GD) has a free cash flow margin of 11.5%, generating $6.2 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-24.

Q: What is GENERAL DYNAMICS CORP's P/E ratio and how does it compare to peers?

GENERAL DYNAMICS CORP (GD) trades at a P/E ratio of 21.7x, which is above the sector median of N/A. EV/Sales 1.9x. FCF yield 6.6%. Source: 10-Q filed 2025-10-24.

Q: Does GENERAL DYNAMICS CORP pay a dividend?

GENERAL DYNAMICS CORP (GD) currently pays a dividend yield of 1.7%. Total shareholder yield (dividend + buybacks) 2.0%. Source: 10-Q filed 2025-10-24.

Q: What is GENERAL DYNAMICS CORP's revenue and earnings growth?

GENERAL DYNAMICS CORP (GD) grew revenue by 9.3% year-over-year. EPS +10.4% YoY. Source: 10-Q filed 2025-10-24.

Q: Is GENERAL DYNAMICS CORP buying back stock?

GENERAL DYNAMICS CORP (GD) repurchased $254.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.3%. Source: 10-Q filed 2025-10-24.

Q: How does GENERAL DYNAMICS CORP compare to competitors in Industrials?

Compared to other companies in Industrials, GENERAL DYNAMICS CORP (GD) shows: ROIC 12.4%, sector median 7.3% (Top 50%). FCF margin 11.5%, sector median 4.8% (Top 25%). Gross margin 72.3%, 39.3pp above sector median. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.

Q: What warning signs should I watch for with GENERAL DYNAMICS CORP?

No quantitative warning flags fired for GENERAL DYNAMICS CORP (GD) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-24.

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Data Source: Data sourced from 10-Q filed 2025-10-24. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.