General Dynamics Corporation (GD)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a longtime student of Graham and Buffett, I look for durable businesses run with financial prudence. General Dynamics fits much of that mold: its Aerospace, Marine Systems, Combat Systems, and Technologies segments serve long-lived defense and business-jet markets, and the work is often tied to multiyear contracts. In fiscal 2025, revenue was $52.5B versus $47.7B in fiscal 2024 and $42.3B in fiscal 2023; net income was $4.2B versus $3.8B and $3.3B; diluted EPS was $15.45 versus $13.63 and $12.02. That is steady progress, not hypergrowth. The FairStock Lynch classification is Slow Grower, reflecting 5.9% annual profit growth and 6.7% revenue growth over five years. The balance sheet looks sound. FairStock data show debt-to-equity of 0.35, a Piotroski score of 8/9, an Altman Z-score of 3.24, and trailing free cash flow of $6.4B, or a 6.7% FCF yield. Return on equity is 17.8%, though return on capital employed is only 6.08%, a reminder that this is capital-intensive. The competitive position is helped by high barriers in nuclear submarines and defense electronics, but contracts and budgets are not entirely within management's control. Valuation is where I pause. At the 2026-10-26 close of $357.04, the FairStock P/E is 21.74, P/B 3.60, PEG 1.61, EV/EBITDA 14.80. The Graham Number is $191.44, leaving a margin of safety of -82.49%. A quality defense franchise deserves a premium, but at this price the stock appears fully valued to expensive rather than bargain-priced.

In plain English: General Dynamics makes business jets and military equipment such as ships, vehicles, and technology systems. The business looks financially strong, with growing sales and profits, low debt, and solid cash generation. At the recent price, the shares look full or fair rather than cheap compared with the company's profits and assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-04-05) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · fiscal Q1 2025 10-Q (period ended 2025-03-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer