GD — General Dynamics Corporation
$340.87
Target: $392.22 (+15.1%)
P/E Ratio
21.5
P/E Forward
20.7
Dividend
1.87%
Market Cap
$92.2B
EPS
$15.85
Consensus
Buy
What they do
General Dynamics Corporation (NYSE: GD) is one of the largest defense and aerospace contractors in the United States, organized into four segments:
1. Marine Systems — through its Electric Boat shipyard, it builds the U.S. Navy's nuclear submarines (the Virginia and Columbia classes). It's the company's deepest moat.
2. Aerospace — it makes Gulfstream private jets, the planes corporations and billionaires buy (~$40-80 million apiece), with a multi-year order book.
3. Combat Systems — Abrams tanks, Stryker vehicles and wheeled armored vehicles for armies.
4. Technologies (GDIT) — information-technology services and mission systems for the U.S. government.
How it makes money: long-term contracts with governments (mostly the U.S.) and Gulfstream jet sales. Revenue is highly predictable because much of the work is already under contract years in advance.
Leadership: chairman and CEO Phebe Novakovic (since 2013). HQ in Reston, Virginia.
Q1 2026: revenue $13.5 billion (+10%), EPS $4.10, and a total order backlog of $131 billion (+48% in one year) — with 38 Gulfstream deliveries, a first-quarter record.
Why we like it
GD at $340.87 means buying a defense contractor with a nearly impossible-to-replicate moat, years of work already under contract, and a dividend that has risen every year for almost three decades. Specific reasons:
- The submarine moat: only TWO shipyards in all of the U.S. can build a nuclear submarine, and GD (Electric Boat) is one — the Navy has no 'plan B' and certifying another would take decades.
- A $131 billion order backlog: nearly 2.4 times its annual revenue (~$54 billion) — years of guaranteed work, no matter the economy — and it grew +48% in a single year.
- Gulfstream: the luxury private-jet business, with strong demand from the ultra-rich and a multi-year order book.
- Dividend Aristocrat: 28+ consecutive years of dividend increases — it pays ~1.87% and that payment grows every year.
- A defense tailwind: with elevated geopolitical tensions (Ukraine, the Indo-Pacific, the Middle East), U.S. and allied defense budgets are rising.
- Reasonable valuation: ~21x earnings — neither cheap nor expensive — for one of the world's most solid defense franchises. Analysts: Buy, target ~$392 (~+15%).
Key Risk
Risks:
- Dependence on the U.S. military budget — the #1: most of its revenue comes from the U.S. government; defense spending cuts, budget fights in Congress or government shutdowns can delay payments and programs.
- Submarine execution risk: building nuclear submarines is about as complex as it gets; delays, cost overruns or a shortage of skilled labor at Electric Boat (a known industry bottleneck) eat the margin.
- The Gulfstream cycle: private jets are a cyclical luxury — in a recession, corporations and the wealthy put off buying $50 million planes.
- A concentrated customer: one dominant customer (the U.S. government) means little bargaining power if political priorities shift.
- Fixed-price contracts: many defense contracts are fixed-price; if inflation or costs rise more than planned, GD absorbs the difference.
- The valuation isn't a bargain: at ~21x earnings it already trades at a fair multiple — the upside depends on delivering, not on buying cheap.
This is educational and informational content, not financial advice. Always consult a qualified financial advisor before making investment decisions.
Vectorial Data picked GD on 2026-06-09 at $340.87.
Full Research
General Dynamics (GD) — Research Completo
Precio: $340.87 | P/E TTM: ~21.5x | P/E fwd: ~20.7x | Div Yield: ~1.87% | Market Cap: ~$92.2B USD
¿Qué es General Dynamics?
Uno de los mayores contratistas de defensa y aeroespacial de EE.UU. NYSE: GD. HQ Reston, Virginia. Cuatro segmentos:
| Segmento | Qué hace |
|---|---|
| Marine Systems | Submarinos nucleares de la Marina (Virginia + Columbia) vía Electric Boat |
| Aerospace | Jets privados Gulfstream (~$40-80M c/u) |
| Combat Systems | Tanques Abrams, vehículos Stryker |
| Technologies (GDIT) | Servicios de IT + sistemas de misión para el gobierno |
El foso
- Solo DOS astilleros en todo EE.UU. pueden construir un submarino nuclear —GD es uno—.
- La Marina no tiene 'plan B'; certificar a otro tomaría décadas.
Q1 2026
| Métrica | Q1 2026 | YoY |
|---|---|---|
| Ingresos | $13.5 mil millones | +10% |
| EPS diluido | $4.10 | beat |
| Cartera de pedidos total | $131 mil millones | +48% |
| Entregas Gulfstream | 38 | récord Q1 |
Dividendo
- Dividend Aristocrat: 28+ años consecutivos subiendo el dividendo.
- Pago anual ~$6.36/acción → yield ~1.87%.
Liderazgo
- CEO/Presidenta: Phebe Novakovic (desde 2013).
Anchor Fact
Hay solo DOS astilleros en todo Estados Unidos capaces de construir un submarino nuclear, y General Dynamics es uno de ellos. La Marina literalmente no le puede comprar a nadie más, y certificar a otro tomaría décadas —así que los pedidos siguen llegando llueva o truene—. Hoy tiene $131 mil millones en pedidos ya firmados, casi 2.4 veces lo que factura en todo un año: años de trabajo garantizado.
Top Risks
- Presupuesto militar de EE.UU. — cliente dominante, riesgo político
- Ejecución en submarinos — retrasos y mano de obra calificada
- Ciclo de Gulfstream — lujo cíclico
- Cliente concentrado — el gobierno de EE.UU.
- Contratos de precio fijo — la inflación come margen
Analyst Consensus
- Rating: Buy
- Target promedio: ~$392.22 (~+15% desde $340.87)
Tesis en una línea
Un contratista de defensa con un foso casi irreplicable (submarinos nucleares), $131 mil millones de trabajo ya contratado y un dividendo que sube hace 28+ años —solidez a precio justo—.
Research fecha: 09 Jun 2026 | Próxima revisión: Dic 2026
Esto no es asesoría financiera.
This is not financial advice. Consult a certified financial advisor.
The author may hold positions in the securities discussed.
Past performance does not guarantee future results.