Debt is smaller than equity and it can meet short-term obligations.
Metrics · D/E ~38% · Current Ratio 1.38
💲Is the price expensive now?
Not cheap (fair to slightly pricey)
Because it is a good, popular company, those expectations are already priced in.
Metrics · P/E 24.2 · P/B 3.9
💡A top-4 U.S. defense prime that also builds Gulfstream jets. D/E 0.38 is lowest of the big three, ROE 18.0%. A 10.3% operating margin is modest for defense.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: stockanalysis (margins, P/B, ROE are TTM) · P/E and P/B recomputed on the July 24 close, as of 2026-07-24
Business Summary · Key Value Metrics
One of the four largest U.S. defense primes and the maker of Gulfstream business jets. Marine Systems, which builds Virginia- and Columbia-class nuclear submarines, is the biggest segment, alongside aerospace, combat systems, and technologies. TTM revenue $53.81B, operating margin 10.3%, ROE 18.0%.
Current Price
$385.20
+0.89%+$3.41· Close 2026-07-24
Analyst Consensus Target (external reference)
$395.74
Avg. of 24 external analysts · stockanalysis (24-analyst consensus, Buy · high $444 / low $308)
P/E (TTM)
24.2x
TTM
ROE
18.0%
TTM
Operating margin
10.3%
TTM · typical for defense
Debt/Equity
0.38x
lowest of the big three
Dividend yield
1.65%
quarterly · $6.36/yr
Market cap
$104.0B
as of 2026-07-24
Economic Moat · Key Business Segments
GD's moat is the only industrial base capable of building the U.S. Navy's nuclear submarines. Virginia- and Columbia-class boats rest on design know-how, skilled labor, and shipyards accumulated over decades, making entry effectively impossible. Gulfstream adds a commercial business-jet leg that partly offsets the defense budget cycle. The company reported total estimated contract value of $188.4B including a $130.8B backlog, with recent-quarter orders at roughly twice revenue (Source: company IR, stockanalysis).
Near-monopoly in submarines
The yards and skills behind Virginia- and Columbia-class boats took decades. Entry is effectively closed.
Long-dated backlog
$130.8B in backlog means years of revenue are already contracted, giving unusual visibility.
Gulfstream commercial leg
Business jets partly offset the defense budget cycle — unlike a pure-play prime.
Low leverage
D/E 0.38 is the lowest of the big three, leaving room to absorb a downturn.
10-Year Financial Trends
Revenue compounded at a 9-year CAGR of +6.2% ($30.6B in 2016 to $52.6B in 2025). Operating income grew +4.1% and net income +5.6%, but EPS rose fastest at +7.2% as buybacks cut the share count from about 310M to 273M. Operating margin drifted from 12.3% (2016) to 10.2% (2025), partly as lower-margin Marine Systems grew quickly. Growth re-accelerated over three years at +7%, +13%, +10%. Q1 2026: revenue $13.48B (+10.3% YoY), diluted EPS $4.10; FY2026 EPS guidance is $16.45-16.55. (Source: SEC EDGAR 10-K, stockanalysis, company IR).
9-Year CAGR: Revenue +6.2% · Operating Income +4.1% · Net Income +5.6% · EPS +7.2%
Source: SEC EDGAR 10-K (revenue, operating income, net income, diluted EPS, equity); fiscal year-end closes from Yahoo Finance; cross-checked against stockanalysis. P/E is year-end close ÷ diluted EPS and ROE is net income ÷ average equity; both match stockanalysis across all five overlapping years (P/E 18.05, 20.35, 21.60, 19.33, 21.79 / ROE 19.56, 18.72, 16.63, 17.44, 17.66). No one-off distortions in the series.
Mega-Cap Value Metric Comparison
GD trades at 24.2x earnings, above Northrop (16.9x) and Lockheed (21.5x), and its 10.3% operating margin trails Northrop's 13.4%. In exchange, D/E of 0.38 is the lowest of the three. Lockheed's 89.2% ROE and 14.9x P/B reflect buybacks thinning its equity rather than a better business, so ranking the three on ROE is badly distorted (Source: stockanalysis, company IR).
Dependence on defense budgets— Most revenue comes from U.S. government contracts, so budget timing and shifting priorities feed straight through to results.Source: company 10-K
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Cost risk in fixed-price work— Defense leans on fixed-price contracts, so overruns land on the contractor. Northrop’s $1.56B pretax B-21 charge in 2023 is the cautionary case.Source: company 10-Ks
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P/E at a 10-year peak, price at its 52-week high— The current 24.2x P/E sits above the entire 10-year range of year-end multiples (13.5-21.8x). At $385.20 the stock is also near its $388.12 high, with the $395.74 average target only 2.7% above. Results are solid, but valuation headroom is the thinnest of the six.Source: stockanalysis, SEC EDGAR (year-end P/E computed in-house)
✦ ValueCrab Dashboard PreviewGD $385.2 +0.89% · as of 2026-07-24
Q. What are the key value metrics for General Dynamics (GD)?P/E (TTM) 24.2, ROE 18.0%, operating margin 10.3%, debt-to-equity 0.38x, dividend yield 1.65%, and a 9-year revenue CAGR of +6.2% (Source: stockanalysis, SEC EDGAR, as of 2026-07-24).
Q. How should a defense contractor be evaluated?Backlog and book-to-bill are the core measures. Backlog is revenue already under contract, so it shows how visible future results are. GD reported $188.4B of total contract value and $130.8B of backlog, with recent-quarter orders at roughly twice revenue.
Q. Isn’t a 10% operating margin low?That is the nature of defense. Government contracts often price cost plus a set fee, which caps margins. Against peers, GD’s 10.3% sits between Northrop’s 13.4% and Lockheed’s 11.0%. The trade-off is low revenue volatility and visibility from backlog.
Q. Lockheed shows 89% ROE — is it the better business?ROE alone misleads here. Lockheed’s 89.2% ROE and 14.9x P/B come from years of buybacks thinning its book equity. Operating margin distorts less: Northrop 13.4% > Lockheed 11.0% > GD 10.3%.