| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 190.10 | -35 |
| Intrinsic value (DCF) | 97.86 | -67 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 243.60 | -17 |
General Dynamics Corporation (GDX.DE) is a leading global aerospace and defense company headquartered in Reston, Virginia, USA. Operating through four key segments—Aerospace, Marine Systems, Combat Systems, and Technologies—the company provides a diversified portfolio of high-tech defense solutions, business aviation, and IT services. The Aerospace segment is renowned for its Gulfstream business jets, while Marine Systems specializes in nuclear-powered submarines and naval vessels for the U.S. Navy. Combat Systems delivers advanced land combat vehicles and munitions, and the Technologies segment offers cutting-edge IT, cybersecurity, and AI-driven defense solutions. With a strong legacy dating back to 1899, General Dynamics is a critical player in national security and defense, serving military, government, and commercial clients worldwide. Its robust R&D capabilities and long-term government contracts ensure stable revenue streams, making it a cornerstone of the Industrials sector and a key defense contractor in the U.S. and allied nations.
General Dynamics presents a compelling investment case due to its diversified defense portfolio, stable government contracts, and strong cash flow generation. The company's Aerospace segment, led by Gulfstream jets, benefits from high-margin aftermarket services, while its Marine and Combat Systems segments are bolstered by rising global defense spending. However, risks include dependency on U.S. defense budgets, geopolitical uncertainties, and supply chain disruptions. With a market cap of €65.1B, a beta of 0.497 (indicating lower volatility than the market), and a solid dividend yield, GDX.DE appeals to conservative investors seeking exposure to the defense sector. Diluted EPS of €13.63 and operating cash flow of €4.1B underscore its financial health, though high debt (€10.7B) warrants monitoring.
General Dynamics holds a competitive edge through its diversified defense and aerospace offerings, deep government relationships, and technological leadership. Its Gulfstream jets dominate the premium business aviation market, while its Marine Systems segment is a prime contractor for U.S. Navy submarines, a high-barrier-to-entry niche. The Combat Systems division competes with global defense giants in land vehicles, leveraging the Stryker platform’s modularity. The Technologies segment differentiates via cybersecurity and AI solutions, critical for modern warfare. However, the company faces intense competition in IT services from pure-play tech firms and in defense from larger rivals like Lockheed Martin. Its scale is smaller than some peers, limiting R&D spending flexibility. Long-term contracts provide revenue visibility but expose GDX to budget cuts. Strategic partnerships (e.g., with the U.S. Department of Defense) and vertical integration in shipbuilding and combat systems sustain its moat.