General Dynamics Corporation GD

Name: GD Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored March 14, 2026

Price at analysis: $352.50

Crucible Score

56.6

Quality × Value Composite

KQI — Quality

68.2

Fundamental Quality Index

KVI — Value

42.5

Valuation Attractiveness Index

Crucible Verdict — GD

General Dynamics Corporation earns a middling C rating, dragged down by weak value metrics despite solid operational quality across defense contracts. The 10% upside to fair value of $388 appears modest given GD's strong diversification and market position, though insider selling raises questions about near-term prospects. Long-tenured CEO Novakovic's performance-based compensation aligns with steady execution, but growth catalysts remain limited.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

64.2

Growth Profile

64.6

Moat Durability

63.7

Management Effectiveness

70.6

Diversification & Resilience

77.0

Market Position

72.0

Weakest dimension: Moat Durability (63.7)

◆ KVI Value Dimensions

DCF Margin of Safety

59.1

FCF Yield & Cash Returns

44.5

Relative Valuation

61.1

Growth-Adjusted Value

17.1

Historical Valuation

6.8

Macro Context

20.5

◆ DCF Valuation Scenarios

Bear Case

$295.12

Base Case

$388.45

Bull Case

$502.78

Price at Analysis

$352.50

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$295.12	4.0%	9.5%	6.7%
🟢 Base	$388.45	6.0%	10.2%	6.2%
🟢 Bull	$502.78	8.0%	11.0%	5.8%

Key Assumptions: WACC derived using CAPM with 4.39% risk-free rate, 0.37 beta, and 5.5% ERP yielding ~6.4% cost of equity, blended with after-tax cost of debt (~3.8%) at ~25% debt weighting for base WACC of ~6.2%. Revenue growth anchored to 5-year CAGR of ~8.1% but moderated given large base; operating margins held near 10-10.5% consistent with historical range. GD's defense backlog supports steady mid-single-digit organic growth in base case with upside from Gulfstream cycle and international defense spending in bull case, while bear reflects potential program delays and margin pressure from supply chain costs.

◆ Financial Snapshot

Profitability

Gross Margin15.1%

Operating Margin10.2%

Net Margin8.0%

ROIC10.5%

ROE20.9%

Balance Sheet

Balance SheetCR: 1.44

Cash ConversionFCF/EPS: 0.94x

Capital IntensityCapex/Rev: 2.2%

Altman Z-Score4.27 (Safe)

Piotroski F-Score8/9 (Strong)

Growth

Revenue CAGR8.1% CAGR

Earnings CAGR6.6% CAGR

Growth ConsistencyCV: 0.96

Segment Breadth4/4 growing (100%)

Quarterly TrendRev↘+9%, WC↓

Earnings CredibilityTends to Beat

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOPhebe Novakovic · 18 years

CEO Ownership25.0%

Compensation89% performance-based

Insider ActivitySelling

Capital AllocationROIC 10.5% vs WACC 2.5%

Earnings Beat Rate72% (17/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 14, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.