NYSE · Industrials

General Dynamics Corporation

GD · Aerospace & Defense

$348.50

▲ 2.66 (0.77%)

Data cached · refreshes every 10 min

Mr. Market is currently offering General Dynamics Corporation at $348.50.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability D

Gross Profit Margin 15.1%

Operating Margin 10.2%

Net Income Margin 8.0%

Fin. Health A

Years to Pay Off Debt 2.3 yrs

Working Capital vs Long-Term Debt $445M

Working Capital $7.5B

Valuation F

Margin of Safety 0.0%

Price-to-Book 3.68x

Cash Flow B

Free Cash Flow $4.0B

CapEx % of Net Income 27.6%

Owner Earnings $6.3B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $94.2B

Enterprise Value $99.6B

P/E (TTM) 21.96

Dividend Yield 1.76%

Exchange NYSE

Key Margins

Gross Profit 15.1%

Operating Margin 10.2%

Net Margin 8.0%

Company Info

Sector Industrials

Industry Aerospace & Defense

Employees 110000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering General Dynamics Corporation at $348.50.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $348.50, the stock trades at a 92% premium to its Graham Number of $181.48. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About General Dynamics Corporation

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. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy and Jones Act ships for commercial customers, as well as provides maintenance, modernization, and lifecycle support services for navy ships; offers and program management, planning, engineering, and design support services for submarine construction programs. The Combat Systems segment manufactures land combat solutions, such as wheeled and tracked combat vehicles, Stryker wheeled combat vehicles, piranha vehicles, weapons systems, energetics and munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, and armored vehicles; and offers modernization programs, support and sustainment services, and development programs. The Technologies segment provides information technology solutions and mission support services; mobile communication, computers, and command-and-control mission systems; intelligence, surveillance, and reconnaissance solutions to military, intelligence, and federal civilian customers; cloud services, cybersecurity, network modernization, artificial intelligence; machine learning; application development, high-performance computing, and 5G and advanced communications services; and unmanned undersea vehicle manufacturing and assembly services. The company was founded in 1899 and is headquartered in Reston, Virginia.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	15.1% ▼	15.4%	15.8%	16.8%
Operating Margin %	10.2% ▲	10.1%	10.0%	10.7%
Net Income %	8.0% ▲	7.9%	7.8%	8.6%
Diluted EPS	15.45 ▲	13.63	12.02	12.19

Balance Sheet Highlights

Metric	2025	2024	2023	2022
Total Assets	$57.2B	$55.9B	$54.8B	$51.6B
Total Debt	$9.8B ↓	$10.7B	$11.1B	$12.1B
Working Capital	$7.5B ▲	$6.6B	$7.2B	$5.7B
Years to Pay Debt	2.33	2.82	3.34	3.57

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$4.0B ▲	$3.2B	$3.8B	$3.5B	N/A
Owner Earnings	$6.3B	$5.6B	$5.1B	$5.4B	N/A
CapEx % of Net Income	27.6%	24.2%	27.3%	32.9%	N/A

Income Statement

	2025	2024	2023	2022
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	6,429,000	5,819,000	5,246,000	5,311,000
Net Income From Continuing Operation Net Minority Interest	4,210,000	3,782,000	3,315,000	3,390,000
Reconciled Depreciation	924,000	886,000	863,000	884,000
Reconciled Cost Of Revenue	44,599,000	40,352,000	35,600,000	32,785,000
EBITDA	6,429,000	5,819,000	5,246,000	5,311,000
EBIT	5,505,000	4,933,000	4,383,000	4,427,000
Net Interest Income	-314,000	-324,000	-343,000	-364,000
Interest Expense	402,000	393,000	399,000	391,000
Interest Income	88,000	69,000	56,000	27,000
Normalized Income	4,210,000	3,782,000	3,315,000	3,390,000
Net Income From Continuing And Discontinued Operation	4,210,000	3,782,000	3,315,000	3,390,000
Total Expenses	47,194,000	42,920,000	38,027,000	35,196,000
Total Operating Income As Reported	5,356,000	4,796,000	4,245,000	4,211,000
Diluted Average Shares	272,400	277,500	275,700	278,200
Basic Average Shares	269,100	273,900	273,100	275,300
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	4,210,000	3,782,000	3,315,000	3,390,000
Net Income Common Stockholders	4,210,000	3,782,000	3,315,000	3,390,000
Net Income	4,210,000	3,782,000	3,315,000	3,390,000
Net Income Including Noncontrolling Interests	4,210,000	3,782,000	3,315,000	3,390,000
Net Income Continuous Operations	4,210,000	3,782,000	3,315,000	3,390,000
Tax Provision	893,000	758,000	669,000	646,000
Pretax Income	5,103,000	4,540,000	3,984,000	4,036,000
Other Income Expense	61,000	68,000	82,000	189,000
Other Non Operating Income Expenses	61,000	68,000	82,000	189,000
Net Non Operating Interest Income Expense	-314,000	-324,000	-343,000	-364,000
Interest Expense Non Operating	402,000	393,000	399,000	391,000
Interest Income Non Operating	88,000	69,000	56,000	27,000
Operating Income	5,356,000	4,796,000	4,245,000	4,211,000
Operating Expense	2,595,000	2,568,000	2,427,000	2,411,000
Selling General And Administration	2,595,000	2,568,000	2,427,000	2,411,000
General And Administrative Expense	2,595,000	2,568,000	2,427,000	2,411,000
Other Gand A	2,595,000	2,568,000	2,427,000	2,411,000
Gross Profit	7,951,000	7,364,000	6,672,000	6,622,000
Cost Of Revenue	44,599,000	40,352,000	35,600,000	32,785,000
Total Revenue	52,550,000	47,716,000	42,272,000	39,407,000
Operating Revenue	52,550,000	47,716,000	42,272,000	39,407,000

Balance Sheet

	2025	2024	2023	2022
Treasury Shares Number		211,540	208,281
Ordinary Shares Number	270,390	270,341	273,600	274,411
Share Issued	270,390	481,881	481,881	274,411
Net Debt	5,680,000	7,065,000	7,348,000	9,254,000
Total Debt	9,789,000	10,676,000	11,083,000	12,114,000
Tangible Book Value	3,238,000	-13,000	-943,000	-3,590,000
Invested Capital	33,635,000	30,825,000	30,560,000	29,064,000
Working Capital	7,452,000	6,562,000	7,183,000	5,722,000
Net Tangible Assets	3,238,000	-13,000	-943,000	-3,590,000
Capital Lease Obligations	1,776,000	1,914,000	1,822,000	1,618,000
Common Stock Equity	25,622,000	22,063,000	21,299,000	18,568,000
Total Capitalization	32,629,000	29,323,000	30,053,000	27,811,000
Total Equity Gross Minority Interest	25,622,000	22,063,000	21,299,000	18,568,000
Stockholders Equity	25,622,000	22,063,000	21,299,000	18,568,000
Gains Losses Not Affecting Retained Earnings	-483,000	-1,518,000	-1,159,000	-2,152,000
Other Equity Adjustments	-483,000	-1,518,000	-1,159,000	-2,152,000
Treasury Stock	22,860,000	22,450,000	21,054,000	20,721,000
Retained Earnings	44,080,000	41,487,000	39,270,000	37,403,000
Additional Paid In Capital	4,403,000	4,062,000	3,760,000	3,556,000
Capital Stock	482,000	482,000	482,000	482,000
Common Stock	482,000	482,000	482,000	482,000
Total Liabilities Net Minority Interest	31,627,000	33,817,000	33,511,000	33,017,000
Total Non Current Liabilities Net Minority Interest	14,831,000	15,993,000	17,079,000	17,676,000
Other Non Current Liabilities	2,564,000	2,118,000	2,033,000	2,475,000
Employee Benefits	1,134,000	2,024,000	2,219,000	2,453,000
Non Current Pension And Other Postretirement Benefit Plans	1,134,000	2,024,000	2,219,000	2,453,000
Non Current Deferred Liabilities	2,649,000	2,996,000	2,576,000	2,175,000
Non Current Deferred Revenue	2,649,000	2,996,000	2,576,000	2,175,000
Long Term Debt And Capital Lease Obligation	8,484,000	8,855,000	10,251,000	10,573,000
Long Term Capital Lease Obligation	1,477,000	1,595,000	1,497,000	1,330,000
Long Term Debt	7,007,000	7,260,000	8,754,000	9,243,000
Current Liabilities	16,796,000	17,824,000	16,432,000	15,341,000
Other Current Liabilities	1,221,000	1,209,000	1,151,000	1,288,000
Current Deferred Liabilities	9,824,000	9,491,000	9,564,000	7,436,000
Current Deferred Revenue	9,824,000	9,491,000	9,564,000	7,436,000
Current Debt And Capital Lease Obligation	1,305,000	1,821,000	832,000	1,541,000
Current Capital Lease Obligation	299,000	319,000	325,000	288,000
Current Debt	1,006,000	1,502,000	507,000	1,253,000
Other Current Borrowings	1,006,000	1,502,000	507,000	1,253,000
Pensionand Other Post Retirement Benefit Plans Current	236,000	244,000	237,000	215,000
Payables And Accrued Expenses	4,210,000	5,059,000	4,648,000	4,861,000
Current Accrued Expenses	1,125,000	1,325,000	1,191,000	1,116,000
Payables	3,085,000	3,734,000	3,457,000	3,745,000
Dividends Payable	407,000	390,000	362,000	347,000
Accounts Payable	2,678,000	3,344,000	3,095,000	3,398,000
Total Assets	57,249,000	55,880,000	54,810,000	51,585,000
Total Non Current Assets	33,001,000	31,494,000	31,195,000	30,522,000
Other Non Current Assets	3,092,000	2,951,000	2,755,000	2,464,000
Goodwill And Other Intangible Assets	22,384,000	22,076,000	22,242,000	22,158,000
Other Intangible Assets	1,375,000	1,520,000	1,656,000	1,824,000
Goodwill	21,009,000	20,556,000	20,586,000	20,334,000
Net PPE	7,525,000	6,467,000	6,198,000	5,900,000
Accumulated Depreciation	-7,605,000	-7,097,000	-6,802,000	-6,392,000
Gross PPE	15,130,000	13,564,000	13,000,000	12,292,000
Construction In Progress	1,462,000	1,173,000	1,086,000	1,020,000
Machinery Furniture Equipment	7,383,000	7,067,000	6,806,000	6,620,000
Buildings And Improvements	5,763,000	4,886,000	4,654,000	4,238,000
Land And Improvements	522,000	438,000	454,000	414,000
Current Assets	24,248,000	24,386,000	23,615,000	21,063,000
Other Current Assets	1,897,000	1,740,000	2,123,000	1,696,000
Inventory	9,232,000	9,724,000	8,578,000	6,322,000
Finished Goods	46,000	49,000	37,000	68,000
Work In Process	5,938,000	6,279,000	5,655,000	4,182,000
Raw Materials	3,248,000	3,396,000	2,886,000	2,072,000
Receivables	10,786,000	11,225,000	11,001,000	11,803,000
Other Receivables	8,380,000	8,248,000	7,997,000	8,795,000
Accounts Receivable	2,406,000	2,977,000	3,004,000	3,008,000
Cash Cash Equivalents And Short Term Investments	2,333,000	1,697,000	1,913,000	1,242,000
Cash And Cash Equivalents	2,333,000	1,697,000	1,913,000	1,242,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	3,959,000	3,196,000	3,806,000	3,465,000
Repurchase Of Capital Stock	-637,000	-1,501,000	-434,000	-1,229,000
Repayment Of Debt	-1,500,000	-500,000	-1,250,000	-1,000,000
Issuance Of Debt	747,000	0	0	0
Capital Expenditure	-1,161,000	-916,000	-904,000	-1,114,000
End Cash Position	2,333,000	1,697,000	1,913,000	1,242,000
Beginning Cash Position	1,697,000	1,913,000	1,242,000	1,603,000
Changes In Cash	636,000	-216,000	671,000	-361,000
Cash Flow From Discontinued Operation	-10,000	-6,000	-4,000	20,000
Financing Cash Flow	-3,190,000	-3,369,000	-3,094,000	-3,471,000
Cash Flow From Continuing Financing Activities	-3,190,000	-3,369,000	-3,094,000	-3,471,000
Net Other Financing Charges	-207,000	161,000	18,000	127,000
Cash Dividends Paid	-1,593,000	-1,529,000	-1,428,000	-1,369,000
Common Stock Dividend Paid	-1,593,000	-1,529,000	-1,428,000	-1,369,000
Net Common Stock Issuance	-637,000	-1,501,000	-434,000	-1,229,000
Common Stock Payments	-637,000	-1,501,000	-434,000	-1,229,000
Net Issuance Payments Of Debt	-753,000	-500,000	-1,250,000	-1,000,000
Short Term Debt Payments			0	0	-1,997,000
Short Term Debt Issuance			0	0	1,997,000
Net Long Term Debt Issuance	-753,000	-500,000	-1,250,000	-1,000,000
Long Term Debt Payments	-1,500,000	-500,000	-1,250,000	-1,000,000
Long Term Debt Issuance	747,000	0	0	0
Investing Cash Flow	-1,284,000	-953,000	-941,000	-1,489,000
Cash Flow From Continuing Investing Activities	-1,284,000	-953,000	-941,000	-1,489,000
Net Other Investing Changes	-123,000	-37,000	-37,000	-375,000
Capital Expenditure Reported	-1,161,000	-916,000	-904,000	-1,114,000
Operating Cash Flow	5,120,000	4,112,000	4,710,000	4,579,000
Cash Flow From Continuing Operating Activities	5,120,000	4,112,000	4,710,000	4,579,000
Change In Working Capital	192,000	-850,000	844,000	680,000
Change In Other Working Capital	-4,000	343,000	2,415,000	2,082,000
Change In Payables And Accrued Expense	-664,000	247,000	-303,000	-212,000
Change In Payable	-664,000	247,000	-303,000	-212,000
Change In Account Payable	-664,000	247,000	-303,000	224,000
Change In Tax Payable		266,000	-209,000	-436,000	-45,000
Change In Income Tax Payable		266,000	-209,000	-436,000	-45,000
Change In Inventory	450,000	-1,195,000	-2,219,000	-980,000
Change In Receivables	410,000	-245,000	951,000	-210,000
Changes In Account Receivables	556,000	16,000	38,000	46,000
Other Non Cash Items	-658,000	197,000	-316,000	-362,000
Stock Based Compensation	196,000	183,000	181,000	165,000
Deferred Tax	256,000	-86,000	-177,000	-178,000
Deferred Income Tax	256,000	-86,000	-177,000	-178,000
Depreciation Amortization Depletion	924,000	886,000	863,000	884,000
Depreciation And Amortization	924,000	886,000	863,000	884,000
Amortization Cash Flow	244,000	242,000	255,000	298,000
Amortization Of Intangibles	244,000	242,000	255,000	298,000
Depreciation	680,000	644,000	608,000	586,000
Net Income From Continuing Operations	4,210,000	3,782,000	3,315,000	3,390,000

These metrics estimate what General Dynamics Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$181.48

Margin of Safety

Market Cap ÷ Company Value

1.27

P/B Ratio

3.68

Warren's Owner Earnings

$6.3B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$52.5B

vs > $1.5B revenue

❌ Strong Financial Condition

1.44x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.76%

vs Uninterrupted dividends

❌ Earnings Growth

+26.7% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

22.0x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

3.68x P/B (P/E×P/B: 80.8)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-27.29

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$220.06

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	27.6%	24.2%	27.3%	32.9%	N/A
Repurchase of Capital Stock	-$637M	-$1.5B	-$434M	-$1.2B	N/A
Free Cash Flow	$4.0B ▲	$3.2B ▼	$3.8B ▲	$3.5B •	N/A •
Warren's Owner Earnings	$6.3B	$5.6B	$5.1B	$5.4B	N/A

Peers & Industry Comparison

Aerospace & Defense — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
GD	$348.50	$94.2B	21.96	15.1%	8.0%	$52.5B
BA Boeing Company (The)	$222.12	$175.1B	88.1	4.8%	2.5%	$92.2B
LMT Lockheed Martin Corporation	$517.76	$119.4B	25.1	9.9%	6.4%	$75.1B
RTX RTX Corporation	$173.28	$233.3B	32.6	20.2%	8.0%	$90.4B
NOC Northrop Grumman Corporation	$569.50	$80.9B	17.9	20.5%	10.8%	$42.4B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.53%

Low — management has little skin in the game

Return on Equity (ROE)

16.4%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

7.4%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$637M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-8.3% YoY

Debt is declining — management is deleveraging

Leadership Team

Phebe Novakovic

Chairperson & CEO

Age 67

Pay: $8,164,003

0.194% of net income

Danny Deep

President

Age 55

Pay: $3,544,278

0.084% of net income

Kimberly Kuryea

Senior VP & CFO

Age 58

Pay: $3,135,011

0.074% of net income

Mark Burns

Executive Vice President

Age 65

Pay: $2,925,810

0.069% of net income

Jason Aiken CPA

Executive Vice President of Combat & Mission Systems

Age 53

Pay: $3,580,442

0.085% of net income

Top Institutional Holders

Institution	% Owned	Shares
Longview Asset Management, LLC	10.01%	27,061,451
Vanguard Group Inc	9.16%	24,767,330
Blackrock Inc.	6.55%	17,725,870
Newport Trust Company, LLC	5.08%	13,725,738
State Street Corporation	4.19%	11,323,170
Bank of America Corporation	3.16%	8,551,749
Massachusetts Financial Services Co.	2.32%	6,265,295
Geode Capital Management, LLC	2.24%	6,065,462

Risk Analysis

Beta (Market Risk)

0.34

Low volatility — more stable than the market

Short Interest

1.1% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.38x

Conservative balance sheet — low financial risk

Current Ratio

1.38x

Adequate liquidity

52-Week Price Range

Low: $267.39 Current: $348.50 High: $369.70

Currently at 79% of 52-week range

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