GENERAL ELECTRIC (GCP.DE) Stock Fundamental Analysis
FRA:GCP - Deutsche Boerse Ag - US3696043013 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to GCP. GCP was compared to 38 industry peers in the Aerospace & Defense industry. While GCP has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, GCP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
GCP had positive earnings in the past year.
GCP had a positive operating cash flow in the past year.
In multiple years GCP reported negative net income over the last 5 years.
Each year in the past 5 years GCP had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.32%, GCP belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
GCP has a better Return On Equity (33.90%) than 97.37% of its industry peers.
GCP has a worse Return On Invested Capital (4.60%) than 65.79% of its industry peers.
GCP had an Average Return On Invested Capital over the past 3 years of 2.65%. This is significantly below the industry average of 8.78%.
The last Return On Invested Capital (4.60%) for GCP is above the 3 year average (2.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 33.9% | ||
| ROIC | 4.6% |
ROA(3y)3.53%
ROA(5y)1.83%
ROE(3y)22.42%
ROE(5y)12.94%
ROIC(3y)2.65%
ROIC(5y)N/A
1.3 Margins
GCP's Profit Margin of 16.94% is amongst the best of the industry. GCP outperforms 100.00% of its industry peers.
With an excellent Operating Margin value of 14.99%, GCP belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
In the last couple of years the Operating Margin of GCP has grown nicely.
GCP has a Gross Margin of 34.71%. This is in the better half of the industry: GCP outperforms 60.53% of its industry peers.
In the last couple of years the Gross Margin of GCP 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GCP is destroying value.
GCP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GCP has less shares outstanding
GCP has a worse debt/assets ratio than last year.
2.2 Solvency
GCP has an Altman-Z score of 2.59. This is not the best score and indicates that GCP is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.59, GCP is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
The Debt to FCF ratio of GCP is 5.24, which is a neutral value as it means it would take GCP, 5.24 years of fcf income to pay off all of its debts.
GCP has a Debt to FCF ratio (5.24) which is comparable to the rest of the industry.
GCP has a Debt/Equity ratio of 0.89. This is a neutral value indicating GCP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.89, GCP is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.5
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.09 indicates that GCP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.09, GCP is in line with its industry, outperforming 42.11% of the companies in the same industry.
GCP has a Quick Ratio of 1.09. This is a bad value and indicates that GCP is not financially healthy enough and could expect problems in meeting its short term obligations.
GCP has a better Quick ratio (0.81) than 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.81 |
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, GCP shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.65% on average per year.
The Revenue for GCP has decreased by -43.05% in the past year. This is quite bad
The Revenue for GCP have been decreasing by -15.57% on average. This is quite bad
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
GCP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.63% yearly.
Based on estimates for the next years, GCP 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
Based on the Price/Earnings ratio of 42.03, the valuation of GCP can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as GCP.
GCP is valuated rather expensively when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 33.71, which means the current valuation is very expensive for GCP.
GCP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GCP is more expensive than 65.79% of the companies in the same industry.
GCP 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 | 42.03 | ||
| Fwd PE | 33.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GCP is valued a bit more expensive than the industry average as 65.79% of the companies are valued more cheaply.
GCP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.13 | ||
| EV/EBITDA | 29.55 |
4.3 Compensation for Growth
GCP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GCP may justify a higher PE ratio.
A more expensive valuation may be justified as GCP's earnings are expected to grow with 19.74% in the coming years.
PEG (NY)1.69
PEG (5Y)N/A
EPS Next 2Y21.77%
EPS Next 3Y19.74%
5. Dividend
5.1 Amount
GCP has a yearly dividend return of 0.73%, which is pretty low.
GCP's Dividend Yield is comparable with the industry average which is at 1.22.
With a Dividend Yield of 0.73, GCP pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
On average, the dividend of GCP grows each year by 9.39%, which is quite nice.
Dividend Growth(5Y)9.39%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
15.38% of the earnings are spent on dividend by GCP. This is a low number and sustainable payout ratio.
GCP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.38%
EPS Next 2Y21.77%
EPS Next 3Y19.74%
FRA:GCP (3/7/2025, 7:00:00 PM)
174
-9 (-4.92%)
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 Cap186.75B
Analysts85.19
Price Target221.9 (27.53%)
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 Years1
Div Non Decr Years4
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)0.94%
PT rev (3m)8.35%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)7.96%
EPS NY rev (1m)1.06%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.03 | ||
| Fwd PE | 33.71 | ||
| P/S | 5.24 | ||
| P/FCF | 55.13 | ||
| P/OCF | 43.05 | ||
| P/B | 10.48 | ||
| P/tB | 30.97 | ||
| EV/EBITDA | 29.55 |
EPS(TTM)4.14
EY2.38%
EPS(NY)5.16
Fwd EY2.97%
FCF(TTM)3.16
FCFY1.81%
OCF(TTM)4.04
OCFY2.32%
SpS33.21
BVpS16.6
TBVpS5.62
PEG (NY)1.69
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 33.9% | ||
| ROCE | 6.54% | ||
| ROIC | 4.6% | ||
| ROICexc | 5.51% | ||
| ROICexgc | 6.66% | ||
| 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)2.65%
ROIC(5y)N/A
ROICexc(3y)3.17%
ROICexc(5y)N/A
ROICexgc(3y)3.77%
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 | 2.59 |
F-Score5
WACC9.13%
ROIC/WACC0.5
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%