General Dynamics Corporation
🇺🇸 GD · NYSE/NASDAQ · US3695501086
Industrials
USD 349.09 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
22.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 349.09 ÷ 15.37 = 22.7
TTM period through: 2025-12-31
Forward P/E (estimated): 21.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 22.6
Yield (Fwd)
1.74%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 1.71%
Net Debt/EBITDA (TTM)
1.2x
Latest quarter: 4.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 4.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
39.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 37.8%
Cash Flow Payout (TTM): 31.1%
FCF Coverage (TTM): 2.49x
ROE
17.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
15.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
General Dynamics is a premier aerospace and defense contractor operating as a highly entrenched oligopoly with essential, long-term government contracts. While the company boasts exceptional financial health, a pristine balance sheet, and a very secure dividend backed by strong free cash flow, current valuations offer limited upside. Existing shareholders should maintain positions given the robust defense spending environment, but new investors should wait for a more attractive entry point with a higher yield.
Sector Context
General Dynamics is a global aerospace and defense company primarily involved in manufacturing nuclear submarines, combat vehicles, weapons systems, and business jets. In the context of dividend investing, major defense contractors operate as highly entrenched oligopolies with immense competitive moats, supported by long-term, highly predictable government contracts that provide recession-resistant cash flows.
📊 Strategy Analysis
- • Exceptional financial stability with a Net Debt/EBITDA of 1.22x and robust Free Cash Flow easily covering the dividend (FCF coverage of 2.49x).
- • Entrenched economic moat backed by long-term government agreements, including a recent $15.38 billion U.S. Navy contract for Columbia-class submarines.
- • Proven track record of uninterrupted dividends with a conservative 39.4% payout ratio, allowing ample room for future increases.
⚠ What to Watch
- • Current valuation at a P/E of 22.71 is significantly elevated compared to the strategy's target range of 8-15x.
- • The 1.71% dividend yield falls well short of the >3% minimum threshold required for optimal income generation.
- • Current price of $349 exceeds typical value-oriented entry points, heavily reducing the margin of safety for new capital.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.