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 40 industry peers in the Aerospace & Defense industry. GCP has an average financial health and profitability rating. While showing a medium growth rate, GCP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year GCP was profitable.
In the past year GCP had a positive cash flow from operations.
In multiple years GCP reported negative net income over the last 5 years.
GCP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.32%, GCP is doing good in the industry, outperforming 80.00% of the companies in the same industry.
GCP has a Return On Equity of 33.90%. This is amongst the best in the industry. GCP outperforms 97.50% of its industry peers.
The Return On Invested Capital of GCP (4.60%) is worse than 62.50% 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 8.80%.
The 3 year average ROIC (2.65%) for GCP is below the current ROIC(4.60%), indicating increased profibility in the last year.
| 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.
GCP has a better Operating Margin (14.99%) than 95.00% of its industry peers.
GCP's Operating Margin has improved in the last couple of years.
GCP 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 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.
GCP has less shares outstanding than it did 5 years ago.
GCP has a worse debt/assets ratio than last year.
2.2 Solvency
GCP has an Altman-Z score of 2.62. 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.
GCP's Altman-Z score of 2.62 is fine compared to the rest of the industry. GCP outperforms 72.50% of its industry peers.
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 of 5.24. This is comparable to the rest of the industry: GCP outperforms 57.50% of its industry peers.
GCP has a Debt/Equity ratio of 0.89. This is a neutral value indicating GCP is somewhat dependend on debt financing.
The Debt to Equity ratio of GCP (0.89) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.48
WACC9.62%
2.3 Liquidity
A Current Ratio of 1.09 indicates that GCP should not have too much problems paying its short term obligations.
GCP has a Current ratio of 1.09. This is in the lower half of the industry: GCP underperforms 65.00% of its industry peers.
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.
With a decent Quick ratio value of 0.81, GCP is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
GCP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.36%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.65% on average over the past years.
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
Based on estimates for the next years, GCP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.13% on average per year.
The Revenue is expected to grow by 9.14% on average over the next years. This is quite good.
EPS Next Y24.51%
EPS Next 2Y21.49%
EPS Next 3Y19.63%
EPS Next 5Y15.13%
Revenue Next Year13.64%
Revenue Next 2Y12.18%
Revenue Next 3Y11.17%
Revenue Next 5Y9.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
With a Price/Earnings ratio of 43.77, GCP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GCP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.92. GCP is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 35.12, GCP can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, GCP is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, GCP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.77 | ||
| Fwd PE | 35.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GCP indicates a slightly more expensive valuation: GCP is more expensive than 70.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GCP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.94 | ||
| EV/EBITDA | 30.4 |
4.3 Compensation for Growth
The 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 19.63% in the coming years.
PEG (NY)1.79
PEG (5Y)N/A
EPS Next 2Y21.49%
EPS Next 3Y19.63%
5. Dividend
5.1 Amount
GCP has a yearly dividend return of 0.79%, which is pretty low.
GCP's Dividend Yield is comparable with the industry average which is at 1.37.
Compared to an average S&P500 Dividend Yield of 2.51, GCP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
The dividend of GCP is nicely growing with an annual growth rate of 9.39%!
Dividend Growth(5Y)9.39%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
GCP pays out 15.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of GCP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.38%
EPS Next 2Y21.49%
EPS Next 3Y19.63%
FRA:GCP (4/24/2025, 5:27:00 PM)
172
+0.6 (+0.35%)
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 Cap183.45B
Analysts83.45
Price Target215.34 (25.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend0.82
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)-2.95%
PT rev (3m)5.25%
EPS NQ rev (1m)1.13%
EPS NQ rev (3m)9.18%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)-1.05%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.77 | ||
| Fwd PE | 35.12 | ||
| P/S | 5.41 | ||
| P/FCF | 56.94 | ||
| P/OCF | 44.46 | ||
| P/B | 10.83 | ||
| P/tB | 31.99 | ||
| EV/EBITDA | 30.4 |
EPS(TTM)3.93
EY2.28%
EPS(NY)4.9
Fwd EY2.85%
FCF(TTM)3.02
FCFY1.76%
OCF(TTM)3.87
OCFY2.25%
SpS31.79
BVpS15.89
TBVpS5.38
PEG (NY)1.79
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 | 2.62 |
F-Score5
WACC9.62%
ROIC/WACC0.48
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 Y24.51%
EPS Next 2Y21.49%
EPS Next 3Y19.63%
EPS Next 5Y15.13%
Revenue 1Y (TTM)-43.05%
Revenue growth 3Y-19.5%
Revenue growth 5Y-15.57%
Sales Q2Q%-49.14%
Revenue Next Year13.64%
Revenue Next 2Y12.18%
Revenue Next 3Y11.17%
Revenue Next 5Y9.14%
EBIT growth 1Y80.92%
EBIT growth 3Y28.15%
EBIT growth 5Y10.46%
EBIT Next Year34.71%
EBIT Next 3Y19.28%
EBIT Next 5Y13.87%
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%