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General Dynamics Corporation
🇺🇸 GD · NYSE/NASDAQ
Industrials
Price at analysis: USD 340.63 Current price: USD 335.85 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
20.8
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: 340.63 ÷ 16.41 = 20.8
TTM period through: 2026-06-30
Forward P/E (estimated): 18.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 20.3
Net Debt/EBITDA (TTM)
0.8x
Latest quarter: 3.0x
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: 2026-06-30
Latest quarter (2026-06-30): 3.0x
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).
ROE
17.8%
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
14.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
1.82%
TTM: 1.85%
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.
Forward Yield (estimated): 1.82%
Trailing Yield (TTM, last 12 months): 1.85%
Payout Ratio (Fwd)
38.8%
TTM: 36.6%
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 (Fwd): 38.8%
Payout (TTM): 36.6%
Cash Flow Payout (TTM): 21.3%
FCF Coverage (TTM): 3.93x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
6.5%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 09 Oct 2027 | — | USD | 1.59 |
| Forecast* | Quarterly | — | 02 Jul 2027 | — | USD | 1.59 |
| Forecast* | Quarterly | — | 10 Apr 2027 | — | USD | 1.59 |
| Forecast* | Quarterly | — | 16 Jan 2027 | — | USD | 1.5 |
| Declared | Quarterly | 05 Aug 2026 | 09 Oct 2026 | 13 Nov 2026 | USD | 1.59 |
| Paid | Quarterly | 03 Jun 2026 | 02 Jul 2026 | 07 Aug 2026 | USD | 1.59 |
| Paid | Quarterly | 04 Mar 2026 | 10 Apr 2026 | 08 May 2026 | USD | 1.59 |
| Paid | Quarterly | 03 Dec 2025 | 16 Jan 2026 | 06 Feb 2026 | USD | 1.5 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
General Dynamics is an elite defense contractor boasting a wide economic moat, an impeccable balance sheet, and highly secure dividend coverage. However, with elevated valuation multiples near 21x P/E and a modest 1.84% forward yield, the stock currently offers a limited margin of safety for value-focused buyers. Existing holders should maintain their positions, while new investors should watch for a better entry point.
Sector Context
General Dynamics operates in the Aerospace & Defense industry. While categorized as non-essential in this specific DGI framework (incurring a minor strategy penalty), defense contractors benefit from massive structural moats, government-backed revenue streams, and high barriers to entry, making them reliable long-term dividend compounders despite lower initial yields.
📊 Strategy Analysis
- • Exceptional FCF dividend coverage of 3.93x with a highly sustainable 38.76% forward payout ratio
- • Impeccable balance sheet demonstrating deleveraging, with Net Debt/EBITDA at 0.77x and a strong ROE of 17.8%
- • Massive regulatory moat protected by ITAR, DFARS, and the Jones Act (benefiting NASSCO shipbuilding)
⚠ What to Watch
- • Elevated valuation with a TTM P/E of 20.76x, remaining well above the core DGI target range of 8-15x
- • The 1.84% forward dividend yield is relatively modest for portfolios prioritizing immediate high income
- • Ongoing exposure to structural legal risks, prominently the active federal antitrust 'no-poach' class action lawsuit and an administrative 'show cause' dispute with the U.S. Army
📊 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: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.