GENERAL ELECTRIC (1GE.MI) Stock Fundamental Analysis
BIT:1GE - Borsa Italiana Milan - US3696041033 - Common Stock - Currency: EUR
1GE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 40 industry peers in the Aerospace & Defense industry. 1GE has an average financial health and profitability rating. 1GE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1GE was profitable.
In the past year 1GE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1GE reported negative net income in multiple years.
1GE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
1GE has a better Return On Assets (4.93%) than 78.38% of its industry peers.
Looking at the Return On Equity, with a value of 33.11%, 1GE belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
1GE has a Return On Invested Capital of 4.26%. This is in the lower half of the industry: 1GE underperforms 67.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1GE is significantly below the industry average of 8.88%.
The 3 year average ROIC (1.62%) for 1GE is below the current ROIC(4.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | 33.11% | ||
| ROIC | 4.26% |
ROA(3y)0.62%
ROA(5y)0.36%
ROE(3y)5.52%
ROE(5y)2.32%
ROIC(3y)1.62%
ROIC(5y)N/A
1.3 Margins
1GE's Profit Margin of 13.21% is amongst the best of the industry. 1GE outperforms 94.59% of its industry peers.
In the last couple of years the Profit Margin of 1GE has grown nicely.
Looking at the Operating Margin, with a value of 10.77%, 1GE is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
In the last couple of years the Operating Margin of 1GE has declined.
1GE has a Gross Margin (30.41%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1GE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.77% | ||
| PM (TTM) | 13.21% | ||
| GM | 30.41% |
OM growth 3YN/A
OM growth 5Y-7.03%
PM growth 3Y26.48%
PM growth 5YN/A
GM growth 3Y4%
GM growth 5Y1.27%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1GE is destroying value.
There is no outstanding debt for 1GE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
1GE has an Altman-Z score of 2.63. This is not the best score and indicates that 1GE is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of 1GE (2.63) is better than 70.27% of its industry peers.
The Debt to FCF ratio of 1GE is 3.79, which is a good value as it means it would take 1GE, 3.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1GE (3.79) is better than 64.86% of its industry peers.
1GE has a Debt/Equity ratio of 0.97. This is a neutral value indicating 1GE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, 1GE is doing worse than 64.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.42
WACC10.19%
2.3 Liquidity
A Current Ratio of 1.13 indicates that 1GE should not have too much problems paying its short term obligations.
1GE has a Current ratio of 1.13. This is in the lower half of the industry: 1GE underperforms 64.86% of its industry peers.
1GE has a Quick Ratio of 1.13. This is a bad value and indicates that 1GE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.85, 1GE is doing good in the industry, outperforming 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 60.36% over the past year.
Measured over the past years, 1GE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.65% on average per year.
EPS 1Y (TTM)60.36%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%28.16%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-49.14%
3.2 Future
Based on estimates for the next years, 1GE will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.63% on average per year.
Based on estimates for the next years, 1GE will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
EPS Next Y23.52%
EPS Next 2Y21.55%
EPS Next 3Y19.35%
EPS Next 5Y12.63%
Revenue Next Year12.58%
Revenue Next 2Y11.96%
Revenue Next 3Y9.1%
Revenue Next 5Y8.39%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 44.70, which means the current valuation is very expensive for 1GE.
Based on the Price/Earnings ratio, 1GE is valued a bit more expensive than the industry average as 64.86% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.47, 1GE is valued quite expensively.
Based on the Price/Forward Earnings ratio of 36.15, the valuation of 1GE can be described as expensive.
75.68% of the companies in the same industry are cheaper than 1GE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1GE to the average of the S&P500 Index (92.74), we can say 1GE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.7 | ||
| Fwd PE | 36.15 |
4.2 Price Multiples
81.08% of the companies in the same industry are cheaper than 1GE, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1GE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.25 | ||
| EV/EBITDA | 33.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1GE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1GE may justify a higher PE ratio.
1GE's earnings are expected to grow with 19.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.9
PEG (5Y)N/A
EPS Next 2Y21.55%
EPS Next 3Y19.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, 1GE is not a good candidate for dividend investing.
1GE's Dividend Yield is slightly below the industry average, which is at 1.41.
Compared to an average S&P500 Dividend Yield of 2.28, 1GE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of 1GE decreases each year by -33.36%.
Dividend Growth(5Y)-33.36%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
12.64% of the earnings are spent on dividend by 1GE. This is a low number and sustainable payout ratio.
DP12.64%
EPS Next 2Y21.55%
EPS Next 3Y19.35%
GENERAL ELECTRIC
BIT:1GE (2/4/2025, 7:00:00 PM)
194
-3 (-1.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.69%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap209.96B
Analysts85.19
Price Target221.61 (14.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.54
Dividend Growth(5Y)-33.36%
DP12.64%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.25%
Min EPS beat(2)-1.74%
Max EPS beat(2)18.24%
EPS beat(4)3
Avg EPS beat(4)12.02%
Min EPS beat(4)-1.74%
Max EPS beat(4)21.46%
EPS beat(8)7
Avg EPS beat(8)28.83%
EPS beat(12)11
Avg EPS beat(12)34.86%
EPS beat(16)14
Avg EPS beat(16)36.24%
Revenue beat(2)0
Avg Revenue beat(2)-4.71%
Min Revenue beat(2)-5.66%
Max Revenue beat(2)-3.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-5.66%
Max Revenue beat(4)8.27%
Revenue beat(8)4
Avg Revenue beat(8)1.82%
Revenue beat(12)4
Avg Revenue beat(12)-5.61%
Revenue beat(16)4
Avg Revenue beat(16)-5.5%
PT rev (1m)6.32%
PT rev (3m)13.71%
EPS NQ rev (1m)-1.1%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-1.56%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.7 | ||
| Fwd PE | 36.15 | ||
| P/S | 4.59 | ||
| P/FCF | 41.25 | ||
| P/OCF | 33.1 | ||
| P/B | 11.5 | ||
| P/tB | 37.75 | ||
| EV/EBITDA | 33.57 |
EPS(TTM)4.34
EY2.24%
EPS(NY)5.37
Fwd EY2.77%
FCF(TTM)4.7
FCFY2.42%
OCF(TTM)5.86
OCFY3.02%
SpS42.3
BVpS16.87
TBVpS5.14
PEG (NY)1.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | 33.11% | ||
| ROCE | 5.5% | ||
| ROIC | 4.26% | ||
| ROICexc | 5.15% | ||
| ROICexgc | 6.21% | ||
| OM | 10.77% | ||
| PM (TTM) | 13.21% | ||
| GM | 30.41% | ||
| FCFM | 11.12% |
ROA(3y)0.62%
ROA(5y)0.36%
ROE(3y)5.52%
ROE(5y)2.32%
ROIC(3y)1.62%
ROIC(5y)N/A
ROICexc(3y)1.96%
ROICexc(5y)N/A
ROICexgc(3y)2.44%
ROICexgc(5y)N/A
ROCE(3y)2.1%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.73%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.81%
OM growth 3YN/A
OM growth 5Y-7.03%
PM growth 3Y26.48%
PM growth 5YN/A
GM growth 3Y4%
GM growth 5Y1.27%
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 3.79 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 91.2% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.61% | ||
| Profit Quality | 84.17% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.63 |
F-Score5
WACC10.19%
ROIC/WACC0.42
Cap/Depr(3y)54.61%
Cap/Depr(5y)56.86%
Cap/Sales(3y)2.04%
Cap/Sales(5y)2.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)60.36%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%28.16%
EPS Next Y23.52%
EPS Next 2Y21.55%
EPS Next 3Y19.35%
EPS Next 5Y12.63%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-49.14%
Revenue Next Year12.58%
Revenue Next 2Y11.96%
Revenue Next 3Y9.1%
Revenue Next 5Y8.39%
EBIT growth 1Y42.4%
EBIT growth 3YN/A
EBIT growth 5Y-13.42%
EBIT Next Year44.03%
EBIT Next 3Y22.67%
EBIT Next 5Y17.5%
FCF growth 1Y116.73%
FCF growth 3Y24.97%
FCF growth 5YN/A
OCF growth 1Y70.26%
OCF growth 3Y13.24%
OCF growth 5Y0.79%