Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
General Dynamics's 5-Year RORE % for the quarter that ended in Mar. 2026 was 7.05%.
The industry rank for General Dynamics's 5-Year RORE % or its related term are showing as below:
MEX:GD's 5-Year RORE % is ranked better than 51.99% of 277
companies
in the Aerospace & Defense industry
Industry Median: 9.94
vs MEX:GD: 7.05
General Dynamics (MEX:GD) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
General Dynamics 5-Year RORE % Related Terms
General Dynamics 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for General Dynamics's 5-Year RORE % 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.
For the Aerospace & Defense subindustry, General Dynamics's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, General Dynamics's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where General Dynamics's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
General Dynamics (MEX:GD) has a 5-Year RORE % of 7.05 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on General Dynamics and its competitors. According to the industry distribution chart, General Dynamics ranks #133 out of 277 companies in the Aerospace & Defense industry, placing it in the top 48%.
Is General Dynamics' 5-Year RORE % too high?
General Dynamics' current 5-Year RORE % is 7.05. The Aerospace & Defense industry median 5-Year RORE % is 9.94. General Dynamics' value of 7.05 is 29.1% below this industry median. Based on the distribution chart, General Dynamics ranks #133 out of 277 companies in the Aerospace & Defense industry, which is above the industry midpoint. 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' 5-Year RORE % compare to HWM and TDG?
According to the Aerospace & Defense industry distribution chart, General Dynamics ranks #133 out of 277 companies for 5-Year RORE %. This puts General Dynamics in the upper half of its industry. The industry median 5-Year RORE % is 9.94. General Dynamics' value of 7.05 is 29.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for an Aerospace & Defense company?
The median 5-Year RORE % among Aerospace & Defense companies is 9.94, based on 277 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General Dynamics's current 5-Year RORE % of 7.05 is 29.1% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on General Dynamics and its competitors. For the Aerospace & Defense industry, the median 5-Year RORE % is 9.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Dynamics's current 5-Year RORE % is 7.05. 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 5-Year RORE % is 7.05 and 29.1% below the Aerospace & Defense industry median of 9.94. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For General Dynamics (MEX:GD), the current 5-Year RORE % is 7.05 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:
5-Year RORE %: 7.05
GF Value™: MXN5,969.79 vs. price of MXN5,976.00 (0.1% above fair value)
Industry Position: 29.1% below the Aerospace & Defense median (#133 of 277)
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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5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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