GENERAL ELECTRIC (1GE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GE - US3696041033 - Common Stock
247.5 EUR
-3 (-1.2%)
Taking everything into account, 1GE scores 5 out of 10 in our fundamental rating. 1GE was compared to 53 industry peers in the Aerospace & Defense industry. 1GE has an excellent profitability rating, but 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
- 1GE had positive earnings in the past year.
- In the past year 1GE had a positive cash flow from operations.
- In multiple years 1GE reported negative net income over the last 5 years.
- Of the past 5 years 1GE 4 years had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 6.29%, 1GE is doing good in the industry, outperforming 79.25% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 42.86%, 1GE belongs to the top of the industry, outperforming 96.23% of the companies in the same industry.
- With a Return On Invested Capital value of 7.55%, 1GE perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
- 1GE had an Average Return On Invested Capital over the past 3 years of 3.20%. This is significantly below the industry average of 9.24%.
- The 3 year average ROIC (3.20%) for 1GE is below the current ROIC(7.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 42.86% | ||
| ROIC | 7.55% |
ROA(3y)3.55%
ROA(5y)1.86%
ROE(3y)22.52%
ROE(5y)13.1%
ROIC(3y)3.2%
ROIC(5y)N/A
1.3 Margins
- 1GE's Profit Margin of 18.34% is amongst the best of the industry. 1GE outperforms 96.23% of its industry peers.
- The Operating Margin of 1GE (17.60%) is better than 92.45% of its industry peers.
- 1GE's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1GE (35.88%) is better than 66.04% of its industry peers.
- In the last couple of years the Gross Margin of 1GE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.6% | ||
| PM (TTM) | 18.34% | ||
| GM | 35.88% |
OM growth 3Y396.9%
OM growth 5Y30.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.73%
GM growth 5Y6.44%
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.
- 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
- An Altman-Z score of 3.21 indicates that 1GE is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.21, 1GE is in the better half of the industry, outperforming 64.15% 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 better Debt to FCF ratio (3.23) than 75.47% of its industry peers.
- A Debt/Equity ratio of 1.00 indicates that 1GE is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1GE (1.00) is worse than 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.75
WACC10.08%
2.3 Liquidity
- A Current Ratio of 1.08 indicates that 1GE should not have too much problems paying its short term obligations.
- 1GE has a Current ratio of 1.08. This is in the lower half of the industry: 1GE underperforms 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.
- The Quick ratio of 1GE (0.76) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 42.09% over the past year.
- 1GE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.94% yearly.
EPS 1Y (TTM)42.09%
EPS 3Y28.46%
EPS 5Y81.94%
EPS Q2Q%18.94%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
- 1GE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.41% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 46.26 indicates a quite expensive valuation of 1GE.
- The rest of the industry has a similar Price/Earnings ratio as 1GE.
- 1GE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 40.32, which means the current valuation is very expensive for 1GE.
- 1GE's Price/Forward Earnings ratio is in line with the industry average.
- 1GE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.26 | ||
| Fwd PE | 40.32 |
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 | 48.32 | ||
| EV/EBITDA | 35.52 |
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 14.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.13
PEG (5Y)0.56
EPS Next 2Y15.85%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
- 1GE has a yearly dividend return of 0.49%, which is pretty low.
- 1GE's Dividend Yield is comparable with the industry average which is at 0.74.
- Compared to an average S&P500 Dividend Yield of 1.82, 1GE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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 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 46.26 and the Price/Book (PB) ratio is 16.55.
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%.