General Dynamics Corp (GD) stock analysis
General Dynamics Corp (GD) clears 5 of this site's 8 mechanical value filters, 7 of 8 Buffett-style checks and 4 of 5 Lynch-style checks. At $350.79 it trades 13.9% below this site's neutral DCF value (a margin of safety of +13.9%). Its earnings quality rates Strong and it returns +2.1% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does General Dynamics do?
General Dynamics builds submarines and surface ships, Gulfstream business jets, combat vehicles, and defense IT and communications systems, mostly for the US government.
Brands and businesses it owns
- Gulfstream
- Electric Boat
- Bath Iron Works
- GDIT
- Abrams tank
What stands out about General Dynamics?
- The share price implies 4.3% yearly growth. At $350.79, GD's free cash flow of $23.85 per share would have to grow 4.3% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for less growth than the baseline. Change the assumptions.
- Misses 1 of the 8 value filters. It fails PEG Ratio < 1.5 (1.94); the other 5 pass and 2 were not evaluated. See every filter.
- The margin of safety is falling. It went from +19% on Oct 7 to +14% on Oct 23 across 5 weekly readings. See the trend.
- Strongest against peers: debt / equity. At 0.28 (peer median 0.66) it ranks 1st of 12 among aerospace & defense stocks this site tracks. See the ranking.
- Priced at 21.1 times earnings. Price-to-book is 3.5 and return on equity 17.4%. See the value diligence check.
How has General Dynamics' share price moved?
The interactive price chart needs JavaScript.
Is General Dynamics undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) +13.9%
- P/E vs. its own history 21.1x · near the expensive end Real range: 18.1x–21.8x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 3.85/5 33 analysts this month: 7 strong buy, 15 buy, 10 hold, 1 sell, 0 strong sell (Finnhub).
- Altman Z″-Score (bankruptcy risk) 4.84 · Safe zone
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.67 · accruals −1.6% of assets · 123% of profit arrived as cash · stock comp 0.4% of revenue · share count −0.6% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +2.1% net Latest fiscal year (2025): dividends 1.7% + buybacks 0.7% − stock comp 0.2%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 26%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $20.18 per $1 of new profit · Capital-hungry · but only 14% return on capital Operating profit $4.1B → $4.8B, capital needed $22B → $35B, 2016–2025 (3-year averages); return on capital now 14% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 1.94 · Above fair P/E 21.1× ÷ 10.9% a year of growth behind it. 217th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 2 of 4 · misses capital-light, price Capital-light growth: not cleared (profit grew 1.2×, under 2×); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): not cleared (PEG 1.94, over 1.5). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 0 flags
- Standing vs. sector peers 4 of 7 measures above the median Compared with the 11 other aerospace & defense stocks this site tracks: 3 in the top third, 0 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does General Dynamics compare with its peers?
4 of 7 measures sit above the median of the 11 other aerospace & defense stocks tracked here, 3 in the top third.
- P/E ratiolower is cheaper · peer median 27.1× 21.1× ✓4th of 12
- Free-cash-flow yieldhigher is cheaper · peer median 4.9% 6.8% ✓4th of 12
- Return on equityhigher is better · peer median 22% 17% –7th of 12
- Net marginhigher is better · peer median 8.2% 8.2% –6th of 12
- Revenue growthhigher is better, year on year · peer median 12.8% 9.1% –8th of 12
- Debt / equitylower is safer · peer median 0.66 0.28 ✓1st of 12
- Dividend yieldamong dividend payers · peer median 1.73% 1.73% –6th of 11
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and GD clears it. In its favor: GD is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, carries a conservative amount of debt relative to equity, has grown earnings per share at a solid clip over five years, earns many times its interest expense, so debt service isn't a worry, is trading below what a conservative discounted-cash-flow estimate says it's worth - his own "price is what you pay, value is what you get" test, not a fixed multiple ceiling, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: GD runs thinner pretax margins than he'd like to see.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✓
- Pretax margin > 15% ✕
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✓
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and GD falls short of his bar. In its favor: GD is growing earnings at the steady 10-20% pace of a proper Stalwart, isn't over-leveraged for a company of its type, isn't asking investors to overpay for that growth, and is backing its growth up with real free cash flow. Where it comes up short: GD fails his signature PEG test, he'd call this pricey for the growth on offer.
- PEG < 1 ✕
- EPS growth 10%-20% ✓
- Debt/Equity < 0.6 ✓
- P/E < 27 ✓
- Price/FCF < 30 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does General Dynamics pass?
- Market Cap > $25B $94.7B
- Trailing P/E < 25 21.10
- PEG Ratio < 1.5 1.94
- Price/Book < 8 3.53
- Price/Sales < 7 1.73
- EPS Growth YoY > -5% +13.3%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is General Dynamics' margin of safety?
+19% on 2026-10-07 → +14% on 2026-10-23 (5 weekly readings).
Where is General Dynamics in its 52-week range?
What is the short interest in General Dynamics?
2,170,782 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily. This period's change looks like a stock split, not a real shift in short positions - share counts aren't split-adjusted at the source.
What could go wrong with General Dynamics? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +49%
- Short interest under 5% of float 0.8%
- Passes most of the 6 fundamental filters 5/6 passed
- Price run-up backed by value, not just momentum +12% off 52wk low
- Debt/equity stable since 2016 0.38 → 0.31
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have General Dynamics shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from GD's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do General Dynamics' 10-year financials show?
From GD's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about General Dynamics
What kind of company is General Dynamics?
General Dynamics builds submarines and surface ships, Gulfstream business jets, combat vehicles, and defense IT and communications systems, mostly for the US government. Brands and businesses it owns include Gulfstream, Electric Boat, Bath Iron Works, GDIT and Abrams tank. This site groups it with Aerospace & Defense stocks.
Is General Dynamics trading above or below its DCF value?
At $350.79, GD trades 13.9% below this site's neutral DCF value of $407.23 per share, a margin of safety of +13.9%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does General Dynamics pass?
GD passes 5 of 8. It passes Market Cap > $25B ($94.7B), Trailing P/E < 25 (21.10), Price/Book < 8 (3.53), Price/Sales < 7 (1.73) and EPS Growth YoY > -5% (+13.3%). It misses PEG Ratio < 1.5 (1.94). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
What growth is General Dynamics' share price pricing in?
At $350.79, GD's free cash flow of $23.85 per share would have to grow 4.3% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for less growth than the baseline. Change the assumptions.
Does General Dynamics pass the Buffett-style and Lynch-style checklists?
On this site's Buffett-style checklist GD clears 7 of 8 checks and leans yes; it misses Pretax margin > 15%. On the Lynch-style checklist it clears 4 of 5 and leans no, with Stalwart as its Lynch category; it misses PEG < 1. These are this site's own rules written in the style of each investor, not their personal views; the rules are in the Editorial Standards.
How much cash does General Dynamics return to shareholders?
GD's net shareholder yield is +2.1%: the cash it returns through dividends and buybacks, minus stock-based compensation, as a share of its market value. Latest fiscal year (2025): dividends 1.7% + buybacks 0.7% − stock comp 0.2%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 26%. Its trailing dividend yield is 1.73%, paid out of 26% of its free cash flow; the dividend-sustainability check raises 0 of 6 flags. See Shareholder Yield Leaders and the Sustainable Dividend Screener.
Where do these numbers come from?
- Financial statements: General Dynamics's 10-K annual report for the year ended Dec 31, 2025, filed Jan 30, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this General Dynamics Corp analysis
This page shows every value-investing check the site runs on General Dynamics Corp (GD) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.