GENERAL DYNAMICS CORP (GD) Stock Analysis

Analysis from 10-Q filed 2025-10-24. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 12.5%. FCF margin 493.3%. D/E 0.3x. Source: 10-Q filed 2025-10-24.

Metric	Value	Context
ROIC	12.5%	Solid returns
FCF Margin	493.3%	Strong cash generation
Debt/Equity	0.3x	Conservative leverage

ROIC 12.5% — Top 25% of sector peers. FCF margin 493.3% — Top 5%.

Explore GENERAL DYNAMICS CORP: Earnings History | Filings

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 12.5% ROIC, Top 25% in Industrials

ROIC TTM 12.5%, sector median 7.2%, Top 25%. DuPont: NOPAT margin -1829.4% × asset turnover -0.0x. Operating margin -2220.8%. Source: 10-Q filed 2025-10-24.

Metric	GD	Rating	Context
Return on Invested Capital (ROIC)	12.5%	Good	Above sector median of 7.2%
Return on Equity (ROE)	17.7%	Good	Efficient use of shareholder equity
Operating Margin	-2220.8%	Warning	Moderate operational efficiency

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Cash Flow: GENERAL DYNAMICS CORP generates $-1.3B FCF at 493.3% margin, positive NaN/8 quarters

FCF TTM $-1.3B. FCF margin 493.3%, Top 5%. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-24.

Metric	GD	Rating	Context
Free Cash Flow Margin	493.3%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$-1.3B	Red flag	Cash burn
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 $7.5B, cash & investments $4.3B. Source: 10-Q filed 2025-10-24.

Metric	GD	Rating	Context
Debt to Equity	0.3x	Excellent	Conservative capital structure
Net Cash Position	$-3.2B	Warning	Net debt position

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Valuation: GENERAL DYNAMICS CORP trades at 22.5x earnings

P/E 22.5x. EV/Sales -377.5x. FCF yield -1.2%. Dividend yield 1.6%. Source: 10-Q filed 2025-10-24.

Metric	GD	Rating	Context
P/E Ratio	22.5x	Adequate	Premium valuation
EV/Sales	-377.5x	Excellent	Attractive revenue multiple
FCF Yield	-1.2%	Warning	Lower cash yield
Dividend Yield	1.6%	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 1.6% + buyback 0.4%). Capital returned $2.0B TTM. Source: 10-Q filed 2025-10-24.

Metric	GD	Rating	Context
Total Shareholder Yield	2.0%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.4%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$2.0B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	12.5%	Top 25%	1.7x above
Free Cash Flow Margin	493.3%	Top 5%	103.7x above
Operating Margin	-2220.8%	Bottom 10%	-296.3x below
Return on Equity (ROE)	17.7%	Top 50%	1.9x above
P/E Ratio	22.5x	N/A	-

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Financial Scorecard

Metric	GD	Rating	Sector Context
Return on Invested Capital (ROIC)	12.5%	Good	Top 25% of sector (median: 7.2%)
Free Cash Flow Margin	493.3%	Excellent	Top 5% of sector (median: 4.8%)
Debt to Equity Ratio	28.0%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	22.5x	Adequate	Fair value
Free Cash Flow Yield	-1.2%	Red flag	Growth-focused valuation

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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 12.5%. Sector median 7.2%. 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 493.3%, generating $-1.3 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 22.5x, which is above the sector median of N/A. EV/Sales -377.5x. 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 1.6%. 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 23.9% year-over-year. EPS +10.2% YoY. Source: 10-Q filed 2025-10-24.

Q: Is GENERAL DYNAMICS CORP buying back stock?

GENERAL DYNAMICS CORP (GD) repurchased $356.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.4%. 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 12.5%, sector median 7.2% (Top 25%). FCF margin 493.3%, sector median 4.8% (Top 5%). 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 Q3 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.