GENERAL ELECTRIC (1GE.MI) Stock Fundamental Analysis
BIT:1GE - Euronext Milan - US3696041033 - Common Stock - Currency: EUR
1GE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 38 industry peers in the Aerospace & Defense industry. While 1GE has a great profitability rating, there are some minor concerns on its financial health. 1GE is valied quite expensively at the moment, while 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 each of the past 5 years.
1.2 Ratios
The Return On Assets of 1GE (5.32%) is better than 81.58% of its industry peers.
With an excellent Return On Equity value of 33.90%, 1GE belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
1GE's Return On Invested Capital of 5.81% is in line compared to the rest of the industry. 1GE outperforms 55.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1GE is significantly below the industry average of 8.78%.
The 3 year average ROIC (3.35%) for 1GE is below the current ROIC(5.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 33.9% | ||
| ROIC | 5.81% |
ROA(3y)3.53%
ROA(5y)1.83%
ROE(3y)22.42%
ROE(5y)12.94%
ROIC(3y)3.35%
ROIC(5y)N/A
1.3 Margins
1GE has a Profit Margin of 16.94%. This is amongst the best in the industry. 1GE outperforms 97.37% of its industry peers.
1GE has a better Operating Margin (14.99%) than 92.11% of its industry peers.
In the last couple of years the Operating Margin of 1GE has grown nicely.
1GE has a Gross Margin (34.71%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1GE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.99% | ||
| PM (TTM) | 16.94% | ||
| GM | 34.71% |
OM growth 3Y59.2%
OM growth 5Y30.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.91%
GM growth 5Y6.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1GE is destroying value.
1GE has less shares outstanding than it did 1 year ago.
1GE has less shares outstanding than it did 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 2.74. 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.
1GE's Altman-Z score of 2.74 is fine compared to the rest of the industry. 1GE outperforms 73.68% of its industry peers.
The Debt to FCF ratio of 1GE is 5.24, which is a neutral value as it means it would take 1GE, 5.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1GE (5.24) is better than 60.53% of its industry peers.
1GE has a Debt/Equity ratio of 0.89. This is a neutral value indicating 1GE is somewhat dependend on debt financing.
1GE has a worse Debt to Equity ratio (0.89) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.63
WACC9.29%
2.3 Liquidity
A Current Ratio of 1.09 indicates that 1GE should not have too much problems paying its short term obligations.
1GE has a Current ratio (1.09) which is in line with its industry peers.
1GE has a Quick Ratio of 1.09. This is a bad value and indicates that 1GE is not financially healthy enough and could expect problems in meeting its short term obligations.
1GE's Quick ratio of 0.81 is fine compared to the rest of the industry. 1GE outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
1GE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.36%, which is quite impressive.
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.
1GE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.05%.
1GE shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -15.57% yearly.
EPS 1Y (TTM)60.36%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%28.16%
Revenue 1Y (TTM)-43.05%
Revenue growth 3Y-19.5%
Revenue growth 5Y-15.57%
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 8.57% on average per year.
EPS Next Y24.82%
EPS Next 2Y21.77%
EPS Next 3Y19.74%
EPS Next 5Y12.63%
Revenue Next Year13.66%
Revenue Next 2Y12.3%
Revenue Next 3Y11.21%
Revenue Next 5Y8.57%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue 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 47.46, which means the current valuation is very expensive for 1GE.
The rest of the industry has a similar Price/Earnings ratio as 1GE.
The average S&P500 Price/Earnings ratio is at 29.35. 1GE is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 38.07, which means the current valuation is very expensive for 1GE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1GE indicates a slightly more expensive valuation: 1GE is more expensive than 76.32% of the companies listed in the same industry.
1GE is valuated expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.46 | ||
| Fwd PE | 38.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1GE is valued a bit more expensive than 68.42% of the companies in the same industry.
1GE's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1GE is more expensive than 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.26 | ||
| EV/EBITDA | 33.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1GE may justify a higher PE ratio.
1GE's earnings are expected to grow with 19.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.91
PEG (5Y)N/A
EPS Next 2Y21.77%
EPS Next 3Y19.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, 1GE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.22, 1GE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, 1GE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of 1GE is nicely growing with an annual growth rate of 9.39%!
Dividend Growth(5Y)9.39%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
15.38% of the earnings are spent on dividend by 1GE. This is a low number and sustainable payout ratio.
1GE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.38%
EPS Next 2Y21.77%
EPS Next 3Y19.74%
BIT:1GE (2/28/2025, 7:00:00 PM)
196.5
+6.5 (+3.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners80.08%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap210.90B
Analysts85.19
Price Target224.15 (14.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.86
Dividend Growth(5Y)9.39%
DP15.38%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.64%
Min EPS beat(2)-1.74%
Max EPS beat(2)23.03%
EPS beat(4)3
Avg EPS beat(4)15.25%
Min EPS beat(4)-1.74%
Max EPS beat(4)23.03%
EPS beat(8)7
Avg EPS beat(8)30.95%
EPS beat(12)11
Avg EPS beat(12)36.32%
EPS beat(16)15
Avg EPS beat(16)38.58%
Revenue beat(2)1
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)0.87%
Revenue beat(4)1
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-5.66%
Max Revenue beat(4)0.87%
Revenue beat(8)5
Avg Revenue beat(8)2.18%
Revenue beat(12)5
Avg Revenue beat(12)-4.86%
Revenue beat(16)5
Avg Revenue beat(16)-5.04%
PT rev (1m)1.15%
PT rev (3m)7.54%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)1.06%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.46 | ||
| Fwd PE | 38.07 | ||
| P/S | 5.92 | ||
| P/FCF | 62.26 | ||
| P/OCF | 48.61 | ||
| P/B | 11.84 | ||
| P/tB | 34.98 | ||
| EV/EBITDA | 33.3 |
EPS(TTM)4.14
EY2.11%
EPS(NY)5.16
Fwd EY2.63%
FCF(TTM)3.16
FCFY1.61%
OCF(TTM)4.04
OCFY2.06%
SpS33.21
BVpS16.6
TBVpS5.62
PEG (NY)1.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 33.9% | ||
| ROCE | 6.54% | ||
| ROIC | 5.81% | ||
| ROICexc | 6.96% | ||
| ROICexgc | 8.41% | ||
| OM | 14.99% | ||
| PM (TTM) | 16.94% | ||
| GM | 34.71% | ||
| FCFM | 9.5% |
ROA(3y)3.53%
ROA(5y)1.83%
ROE(3y)22.42%
ROE(5y)12.94%
ROIC(3y)3.35%
ROIC(5y)N/A
ROICexc(3y)4.01%
ROICexc(5y)N/A
ROICexgc(3y)4.76%
ROICexgc(5y)N/A
ROCE(3y)3.77%
ROCE(5y)N/A
ROICexcg growth 3Y41.98%
ROICexcg growth 5Y24.01%
ROICexc growth 3Y50.02%
ROICexc growth 5Y26.63%
OM growth 3Y59.2%
OM growth 5Y30.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.91%
GM growth 5Y6.44%
F-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 5.24 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 87.16% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 5.99 | ||
| Cash Conversion | 67.42% | ||
| Profit Quality | 56.1% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.74 |
F-Score5
WACC9.29%
ROIC/WACC0.63
Cap/Depr(3y)67.38%
Cap/Depr(5y)59.46%
Cap/Sales(3y)2.35%
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 Y24.82%
EPS Next 2Y21.77%
EPS Next 3Y19.74%
EPS Next 5Y12.63%
Revenue 1Y (TTM)-43.05%
Revenue growth 3Y-19.5%
Revenue growth 5Y-15.57%
Sales Q2Q%-49.14%
Revenue Next Year13.66%
Revenue Next 2Y12.3%
Revenue Next 3Y11.21%
Revenue Next 5Y8.57%
EBIT growth 1Y80.92%
EBIT growth 3Y28.15%
EBIT growth 5Y10.46%
EBIT Next Year36.56%
EBIT Next 3Y20.11%
EBIT Next 5Y13.11%
FCF growth 1Y-15.02%
FCF growth 3Y23.11%
FCF growth 5Y-10.02%
OCF growth 1Y-9.25%
OCF growth 3Y12.23%
OCF growth 5Y-11.62%