GENERAL ELECTRIC (1GE.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1GE • US3696041033
256.5 EUR
+10 (+4.06%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to 1GE. 1GE was compared to 53 industry peers in the Aerospace & Defense industry. While 1GE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, 1GE is valued expensive at the moment.
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.
- Of the past 5 years 1GE 4 years were profitable.
- Of the past 5 years 1GE 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.29%, 1GE is in the better half of the industry, outperforming 77.36% of the companies in the same industry.
- 1GE has a Return On Equity of 42.86%. This is amongst the best in the industry. 1GE outperforms 96.23% of its industry peers.
- 1GE has a Return On Invested Capital (7.36%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1GE is below the industry average of 9.60%.
- The last Return On Invested Capital (7.36%) for 1GE is above the 3 year average (5.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 42.86% | ||
| ROIC | 7.36% |
ROA(3y)5.77%
ROA(5y)2.81%
ROE(3y)38.01%
ROE(5y)19.57%
ROIC(3y)5.16%
ROIC(5y)3.38%
1.3 Margins
- 1GE has a Profit Margin of 18.34%. This is amongst the best in the industry. 1GE outperforms 96.23% of its industry peers.
- 1GE's Profit Margin has improved in the last couple of years.
- 1GE has a better Operating Margin (17.60%) than 92.45% of its industry peers.
- In the last couple of years the Operating Margin of 1GE has grown nicely.
- The Gross Margin of 1GE (35.88%) is better than 66.04% of its industry peers.
- 1GE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.6% | ||
| PM (TTM) | 18.34% | ||
| GM | 35.88% |
OM growth 3Y30.41%
OM growth 5YN/A
PM growth 3Y386.62%
PM growth 5Y23.23%
GM growth 3Y4.92%
GM growth 5Y9.95%
2. Health
2.1 Basic Checks
- 1GE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, 1GE has less shares outstanding
- The number of shares outstanding for 1GE has been reduced compared to 5 years ago.
- The debt/assets ratio for 1GE is higher compared to a year ago.
2.2 Solvency
- 1GE has an Altman-Z score of 3.27. This indicates that 1GE is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.27, 1GE is doing good in the industry, outperforming 66.04% of the companies in the same industry.
- The Debt to FCF ratio of 1GE is 3.23, which is a good value as it means it would take 1GE, 3.23 years of fcf income to pay off all of its debts.
- 1GE has a Debt to FCF ratio of 3.23. This is in the better half of the industry: 1GE outperforms 73.58% of its industry peers.
- 1GE has a Debt/Equity ratio of 1.00. This is a neutral value indicating 1GE is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 1.00, 1GE is not doing good in the industry: 73.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.73
WACC10.09%
2.3 Liquidity
- A Current Ratio of 1.08 indicates that 1GE should not have too much problems paying its short term obligations.
- 1GE's Current ratio of 1.08 is on the low side compared to the rest of the industry. 1GE is outperformed by 69.81% of its industry peers.
- 1GE has a Quick Ratio of 1.08. This is a bad value and indicates that 1GE is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.76, 1GE is in line with its industry, outperforming 43.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- 1GE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.09%, which is quite impressive.
- The Earnings Per Share has been growing by 81.94% on average over the past years. This is a very strong growth
- Looking at the last year, 1GE shows a quite strong growth in Revenue. The Revenue has grown by 18.48% in the last year.
- 1GE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.57% yearly.
EPS 1Y (TTM)42.09%
EPS 3Y28.46%
EPS 5Y81.94%
EPS Q2Q%18.94%
Revenue 1Y (TTM)18.48%
Revenue growth 3Y16.32%
Revenue growth 5Y-9.57%
Sales Q2Q%20.1%
3.2 Future
- 1GE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.84% yearly.
- The Revenue is expected to grow by 8.41% on average over the next years. This is quite good.
EPS Next Y14.77%
EPS Next 2Y15.85%
EPS Next 3Y14.33%
EPS Next 5Y12.84%
Revenue Next Year13.4%
Revenue Next 2Y11.72%
Revenue Next 3Y10.61%
Revenue Next 5Y8.41%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- 1GE is valuated quite expensively with a Price/Earnings ratio of 47.94.
- The rest of the industry has a similar Price/Earnings ratio as 1GE.
- The average S&P500 Price/Earnings ratio is at 28.32. 1GE is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 41.75, 1GE can be considered very expensive at the moment.
- 1GE's Price/Forward Earnings is on the same level as the industry average.
- 1GE is valuated expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.94 | ||
| Fwd PE | 41.75 |
4.2 Price Multiples
- 1GE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1GE is more expensive than 62.26% of the companies in the same industry.
- 1GE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.04 | ||
| EV/EBITDA | 36.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 1GE has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1GE's earnings are expected to grow with 14.33% in the coming years.
PEG (NY)3.25
PEG (5Y)0.59
EPS Next 2Y15.85%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
- 1GE has a yearly dividend return of 0.48%, which is pretty low.
- 1GE's Dividend Yield is comparable with the industry average which is at 0.71.
- Compared to an average S&P500 Dividend Yield of 1.83, 1GE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
- On average, the dividend of 1GE grows each year by 9.39%, which is quite nice.
Dividend Growth(5Y)9.39%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1GE pays out 17.08% of its income as dividend. This is a sustainable payout ratio.
- 1GE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.08%
EPS Next 2Y15.85%
EPS Next 3Y14.33%
GENERAL ELECTRIC / 1GE.MI FAQ
What is the ChartMill fundamental rating of GENERAL ELECTRIC (1GE.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1GE.MI.
What is the valuation status of GENERAL ELECTRIC (1GE.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to GENERAL ELECTRIC (1GE.MI). This can be considered as Overvalued.
What is the profitability of 1GE stock?
GENERAL ELECTRIC (1GE.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for 1GE stock?
The Price/Earnings (PE) ratio for GENERAL ELECTRIC (1GE.MI) is 47.94 and the Price/Book (PB) ratio is 17.14.
Is the dividend of GENERAL ELECTRIC sustainable?
The dividend rating of GENERAL ELECTRIC (1GE.MI) is 4 / 10 and the dividend payout ratio is 17.08%.