Stock Analysis Report

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Executive Summary

General Dynamics Corporation operates as an aerospace and defense company worldwide. More Details

Snowflake Analysis

Established dividend payer and good value.

Similar Companies

Share Price & News

How has General Dynamics's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: GD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GD's weekly volatility (3%) has been stable over the past year.

Market Performance

7 Day Return




US Aerospace & Defense


US Market

1 Year Return




US Aerospace & Defense


US Market

Return vs Industry: GD exceeded the US Aerospace & Defense industry which returned -19.1% over the past year.

Return vs Market: GD underperformed the US Market which returned 29.4% over the past year.

Shareholder returns

7 Day-0.3%-1.5%-2.4%
30 Day10.6%1.9%-3.0%
90 Day6.2%-0.1%3.2%
1 Year4.6%1.5%0.9%-15.4%34.1%31.2%
3 Year-21.3%-26.9%4.4%-16.4%48.1%38.6%
5 Year38.6%24.1%74.2%30.5%116.5%92.3%

Long-Term Price Volatility Vs. Market

How volatile is General Dynamics's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is General Dynamics undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GD ($167.95) is trading below our estimate of fair value ($245.31)

Significantly Below Fair Value: GD is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: GD is good value based on its PE Ratio (15.2x) compared to the US Aerospace & Defense industry average (34.7x).

PE vs Market: GD is good value based on its PE Ratio (15.2x) compared to the US market (21.4x).

Price to Earnings Growth Ratio

PEG Ratio: GD is poor value based on its PEG Ratio (2.8x)

Price to Book Ratio

PB vs Industry: GD is overvalued based on its PB Ratio (3.1x) compared to the US Aerospace & Defense industry average (2.8x).

Next Steps

Future Growth

How is General Dynamics forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GD's forecast earnings growth (5.5% per year) is above the savings rate (2%).

Earnings vs Market: GD's earnings (5.5% per year) are forecast to grow slower than the US market (19.6% per year).

High Growth Earnings: GD's earnings are forecast to grow, but not significantly.

Revenue vs Market: GD's revenue (3.5% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: GD's revenue (3.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GD's Return on Equity is forecast to be low in 3 years time (19.9%).

Next Steps

Past Performance

How has General Dynamics performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GD has high quality earnings.

Growing Profit Margin: GD's current net profit margins (8.4%) are lower than last year (8.9%).

Past Earnings Growth Analysis

Earnings Trend: GD's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: GD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GD had negative earnings growth (-9.1%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-5.4%).

Return on Equity

High ROE: GD's Return on Equity (20.2%) is considered high.

Next Steps

Financial Health

How is General Dynamics's financial position?

Financial Position Analysis

Short Term Liabilities: GD's short term assets ($21.5B) exceed its short term liabilities ($16.0B).

Long Term Liabilities: GD's short term assets ($21.5B) exceed its long term liabilities ($19.7B).

Debt to Equity History and Analysis

Debt Level: GD's debt to equity ratio (83%) is considered high.

Reducing Debt: GD's debt to equity ratio has increased from 31.7% to 83% over the past 5 years.

Debt Coverage: GD's debt is well covered by operating cash flow (29.2%).

Interest Coverage: GD's interest payments on its debt are well covered by EBIT (8.8x coverage).

Balance Sheet

Next Steps


What is General Dynamics's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GD's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: GD's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.69%).

Stability and Growth of Payments

Stable Dividend: GD's dividends per share have been stable in the past 10 years.

Growing Dividend: GD's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.9%), GD's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: GD's dividends in 3 years are forecast to be well covered by earnings (42% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Phebe Novakovic (62 yo)





Ms. Phebe N. Novakovic has been the Chairperson and Chief Executive Officer of General Dynamics Corporation since January 1, 2013 and has been its Director since May 2012. She joined General Dynamics in 20...

CEO Compensation Analysis

Compensation vs Market: Phebe's total compensation ($USD18.31M) is above average for companies of similar size in the US market ($USD10.53M).

Compensation vs Earnings: Phebe's compensation has been consistent with company performance over the past year.

Leadership Team

Phebe Novakovic
CEO & Chairperson8.17yrsUS$18.31m0.26%
$ 121.0m
Jason Aiken
Senior VP & CFO7.17yrsUS$5.12m0.032%
$ 15.0m
Gregory Gallopoulos
Senior VP11.17yrsUS$4.21m0.045%
$ 21.4m
Mark Roualet
Executive Vice President of Combat Systems8yrsUS$5.31m0.049%
$ 23.0m
Mark Burns
VP & President of Gulfstream Aerospace5.67yrsUS$4.37m0.017%
$ 7.9m
Christopher Marzilli
Executive Vice President of Technologies0.17yrno data0.025%
$ 11.9m
Kimberly Kuryea
Senior Vice President of Human Resources & Administration3.92yrsno data0.023%
$ 10.7m
Howard Rubel
Vice President of Investor Relationsno datano datano data
Thomas Kirchmaier
Senior Vice President of Planning1.92yrsno datano data
Marguerite Gilliland
Senior Vice President5.92yrsno data0.013%
$ 6.1m
Robert Smith
Executive Vice President of Marine Systems1.67yrsno data0.012%
$ 5.5m
Kevin Graney
President of General Dynamics Electric Boat4.17yrsno data0.0083%
$ 3.9m


Average Tenure


Average Age

Experienced Management: GD's management team is seasoned and experienced (5.7 years average tenure).

Board Members

Phebe Novakovic
CEO & Chairperson8.17yrsUS$18.31m0.26%
$ 121.0m
William Osborn
Independent Director11.25yrsUS$314.93k0.013%
$ 5.9m
James Crown
Lead Independent Director10.83yrsUS$337.89k5.44%
$ 2.6b
John Stratton
Independent Director1.08yrsno data0.0014%
$ 677.4k
Rudy deLeon
Independent Director6.5yrsUS$306.89k0.0013%
$ 634.8k
Laura Schumacher
Independent Director7.08yrsUS$286.89k0.0025%
$ 1.2m
Catherine Reynolds
Independent Director3.83yrsUS$314.89k0.0014%
$ 644.3k
C. Nye
Independent Director2.83yrsUS$286.89k0.00091%
$ 431.1k
Mark Malcolm
Independent Director5.58yrsUS$304.89k0.0023%
$ 1.1m
James Mattis
Independent Director1.58yrsUS$127.46k0.00023%
$ 109.0k
Peter Wall
Independent Director4.58yrsUS$314.89k0.00088%
$ 416.9k
Cecil Haney
Independent Director2yrsUS$266.36k0.00036%
$ 170.5k


Average Tenure


Average Age

Experienced Board: GD's board of directors are considered experienced (5.1 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

General Dynamics Corporation's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: General Dynamics Corporation
  • Ticker: GD
  • Exchange: NYSE
  • Founded: 1899
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$47.373b
  • Shares outstanding: 285.78m
  • Website: https://www.gd.com

Number of Employees


  • General Dynamics Corporation
  • 11011 Sunset Hills Road
  • Reston
  • Virginia
  • 20190
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
GDXDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
GDXXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
GD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
0IUCLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
GEDYWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
GDXETLX (Eurotlx)YesCommon StockITEURJan 1968
GDBR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLAug 2015


General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Marine Systems segme...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 00:24
End of Day Share Price2021/03/04 00:00
Annual Earnings2020/12/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.