General DynamicsMEX:GD 87 Gross Margin % is 15.90% as of Mar. 2026, which is 5% below its 10-year median of 16.74. GuruFocus rates MEX:GD with a GF Score™ of 87/100 and a GF Value™ of MXN6,053.08 (Fairly Valued). The stock has 8 warning signs investors should review. Among 342 Aerospace & Defense companies, General Dynamics ranks worse than 77.49% on this metric.
General Dynamics Corp gross margin has been in long-term decline. The average rate of decline per year is -2.2%.
The historical rank and industry rank for General Dynamics's Gross Margin % or its related term are showing as below:
MEX:GD'
s Gross Margin % Range Over the Past 10 Years
Min: 15.13 Med: 16.74 Max: 20.15
Current: 15.24
During the past 13 years, the highestGross Margin % of General Dynamics was 20.15%. The lowest was 15.13%. And the median was 16.74%.
MEX:GD's Gross Margin % is ranked worse than 77.49% of 342
companies
in the Aerospace & Defense industry
Industry Median: 26.65
vs MEX:GD: 15.24
General Dynamics had a gross margin of 15.90% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for General Dynamics was -2.20% per year.
General Dynamics (MEX:GD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
General Dynamics had a gross margin of 15.90% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
General Dynamics Gross Margin % Related Terms
General Dynamics Gross Margin % Historical Data
* Premium members only.
The historical data trend for General Dynamics's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:GD vs HWM, RKLB, NOC: Gross Margin % Comparison
For the Aerospace & Defense subindustry, General Dynamics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
General Dynamics Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, General Dynamics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where General Dynamics's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
General Dynamics (MEX:GD) has a Gross Margin % of 15.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on General Dynamics and its competitors. This is near median its historical median of 16.74. Over the past decade, General Dynamics' Gross Margin % has ranged from 15.13 to 20.15. According to the industry distribution chart, General Dynamics ranks #265 out of 342 companies in the Aerospace & Defense industry, placing it in the top 77.5%.
Is General Dynamics' Gross Margin % too high?
General Dynamics' current Gross Margin % of 15.90% is near median its 10-year median of 16.74. Over the past 10 years, this metric has ranged from a low of 15.13 to a high of 20.15. The Aerospace & Defense industry median Gross Margin % is 26.65. General Dynamics' value of 15.90% is 40.3% below this industry median. Based on the distribution chart, General Dynamics ranks #265 out of 342 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, General Dynamics has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does General Dynamics' Gross Margin % compare to HWM and RKLB?
According to the Aerospace & Defense industry distribution chart, General Dynamics ranks #265 out of 342 companies for Gross Margin %. This places General Dynamics in the lower half of its industry. The industry median Gross Margin % is 26.65. General Dynamics' value of 15.90% is 40.3% below this benchmark. Historically, General Dynamics' own Gross Margin % has ranged from 15.13 to 20.15 over the past decade. While the company's 10-year median is 16.74 vs. the industry median of 26.65, General Dynamics has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General Dynamics's current Gross Margin % of 15.90% is 40.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on General Dynamics and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Dynamics's current Gross Margin % is 15.90%, which is near median its own 10-year median of 16.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General Dynamics stock overvalued right now?
Based on GuruFocus' analysis, General Dynamics (MEX:GD) is currently considered Fairly Valued. The stock's GF Value™ is MXN6,053.08, compared to a current price of MXN5,976.00 — trading 1.3% below its estimated fair value. The current Gross Margin % is 15.90%, which is near median its 10-year median of 16.74 and 40.3% below the Aerospace & Defense industry median of 26.65. General Dynamics' overall GF Score™ is 87/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For General Dynamics (MEX:GD), the current Gross Margin % is 15.90% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is General Dynamics (MEX:GD) Overvalued in 2026?
Based on GuruFocus' analysis, General Dynamics stock appears to be undervalued.
The current stock price of MXN5,976.00 is trading 1.3% below its estimated GF Value™ of MXN6,053.08.
GuruFocus considers General Dynamics to be Fairly Valued.
Key valuation signals for MEX:GD:
Gross Margin %: 15.90% (near median its 10-year median of 16.74)
GF Value™: MXN6,053.08 vs. price of MXN5,976.00 (1.3% below fair value)
Industry Position: 40.3% below the Aerospace & Defense median (#265 of 342)
No single metric tells the full story. See the MEX:GD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General Dynamics is a defense contractor and business jet manufacturer. The firm's segments are aerospace, marine, combat systems, and technologies. General Dynamics' aerospace segment manufactures Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment builds and services nuclear-powered submarines, destroyers, and Navy support ships. The technologies segment contains two main units: an IT business that primarily serves the government market and a mission systems business focusing on electronics that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.
87GF Score
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