General DynamicsMEX:GD 86 Return-on-Tangible-Equity is 128.06% as of Mar. 2026, which is 51% below its 10-year median of 261.09. GuruFocus rates MEX:GD with a GF Score™ of 86/100 and a GF Value™ of MXN5,969.79 (Fairly Valued). The stock has 8 warning signs investors should review. Among 334 Aerospace & Defense companies, General Dynamics ranks better than 90.42% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. General Dynamics's annualized net income for the quarter that ended in Mar. 2026 was MXN81,147 Mil. General Dynamics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN63,368 Mil. Therefore, General Dynamics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 128.06%.
The historical rank and industry rank for General Dynamics's Return-on-Tangible-Equity or its related term are showing as below:
MEX:GD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 204.74 Med: 261.09 Max: 261.09
Current: 204.74
During the past 13 years, General Dynamics's highest Return-on-Tangible-Equity was 261.09%. The lowest was 204.74%. And the median was 261.09%.
MEX:GD's Return-on-Tangible-Equity is ranked better than 90.42% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs MEX:GD: 204.74
General Dynamics (MEX:GD) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
General Dynamics Return-on-Tangible-Equity Related Terms
General Dynamics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for General Dynamics's Return-on-Tangible-Equity 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, TDG, NOC: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, General Dynamics's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, General Dynamics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where General Dynamics's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 128.06% mean?
General Dynamics (MEX:GD) has a Return-on-Tangible-Equity of 128.06% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on General Dynamics and its competitors. This is 51% below median its historical median of 261.09. Over the past decade, General Dynamics' Return-on-Tangible-Equity has ranged from 204.74 to 261.09. According to the industry distribution chart, General Dynamics ranks #32 out of 334 companies in the Aerospace & Defense industry, placing it in the top 9.6%.
Is General Dynamics' Return-on-Tangible-Equity too high?
General Dynamics' current Return-on-Tangible-Equity of 128.06% is 51% below median its 10-year median of 261.09. Over the past 10 years, this metric has ranged from a low of 204.74 to a high of 261.09. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. General Dynamics' value of 128.06% is 1462.7% above this industry median. Based on the distribution chart, General Dynamics ranks #32 out of 334 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, General Dynamics has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does General Dynamics' Return-on-Tangible-Equity compare to HWM and TDG?
According to the Aerospace & Defense industry distribution chart, General Dynamics ranks #32 out of 334 companies for Return-on-Tangible-Equity. This places General Dynamics in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.20. General Dynamics' value of 128.06% is 1462.7% above this benchmark. Historically, General Dynamics' own Return-on-Tangible-Equity has ranged from 204.74 to 261.09 over the past decade. While the company's 10-year median is 261.09 vs. the industry median of 8.20, General Dynamics has consistently been above 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 Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General Dynamics's current Return-on-Tangible-Equity of 128.06% is 1462.7% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on General Dynamics and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Dynamics's current Return-on-Tangible-Equity is 128.06%, which is 51% below median its own 10-year median of 261.09. 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 MXN5,969.79, compared to a current price of MXN5,976.00 — trading 0.1% above its estimated fair value. The current Return-on-Tangible-Equity is 128.06%, which is 51% below median its 10-year median of 261.09 and 1462.7% above the Aerospace & Defense industry median of 8.20. General Dynamics' overall GF Score™ is 86/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For General Dynamics (MEX:GD), the current Return-on-Tangible-Equity is 128.06% 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 overvalued.
The current stock price of MXN5,976.00 is trading 0.1% above its estimated GF Value™ of MXN5,969.79.
GuruFocus considers General Dynamics to be Fairly Valued.
Key valuation signals for MEX:GD:
Return-on-Tangible-Equity: 128.06% (51% below median its 10-year median of 261.09)
GF Value™: MXN5,969.79 vs. price of MXN5,976.00 (0.1% above fair value)
Industry Position: 1462.7% above the Aerospace & Defense median (#32 of 334)
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.
86GF Score
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