GENERAL ELECTRIC (GCP.DE) Stock Fundamental Analysis
FRA:GCP - Deutsche Boerse Ag - US3696043013 - Common Stock - Currency: EUR
GCP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 industry peers in the Aerospace & Defense industry. While GCP belongs to the best of the industry regarding profitability, there are 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.
In the past year GCP had a positive cash flow from operations.
Of the past 5 years GCP 4 years were profitable.
In the past 5 years GCP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GCP (5.64%) is better than 82.22% of its industry peers.
GCP has a Return On Equity of 36.34%. This is amongst the best in the industry. GCP outperforms 97.78% of its industry peers.
GCP has a Return On Invested Capital of 5.12%. This is in the lower half of the industry: GCP underperforms 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GCP is significantly below the industry average of 8.70%.
The 3 year average ROIC (2.53%) for GCP is below the current ROIC(5.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 36.34% | ||
| ROIC | 5.12% |
ROA(3y)3.55%
ROA(5y)1.86%
ROE(3y)22.52%
ROE(5y)13.1%
ROIC(3y)2.53%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 17.63%, GCP belongs to the top of the industry, outperforming 97.78% of the companies in the same industry.
Looking at the Operating Margin, with a value of 16.35%, GCP belongs to the top of the industry, outperforming 95.56% 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 35.83%. This is comparable to the rest of the industry: GCP outperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of GCP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.35% | ||
| PM (TTM) | 17.63% | ||
| GM | 35.83% |
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
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 2.94. 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.
With a decent Altman-Z score value of 2.94, GCP is doing good in the industry, outperforming 71.11% of the companies in the same industry.
GCP has a debt to FCF ratio of 4.44. This is a neutral value as GCP would need 4.44 years to pay back of all of its debts.
GCP has a Debt to FCF ratio (4.44) which is in line with its industry peers.
A Debt/Equity ratio of 0.91 indicates that GCP is somewhat dependend on debt financing.
GCP has a worse Debt to Equity ratio (0.91) than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.52
WACC9.85%
2.3 Liquidity
A Current Ratio of 1.08 indicates that GCP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.08, GCP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.77 indicates that GCP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, GCP is in line with its industry, outperforming 48.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
GCP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.03%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.65% on average over the past years.
GCP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.81%.
The Revenue for GCP have been decreasing by -15.57% on average. This is quite bad
EPS 1Y (TTM)54.03%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%81.71%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%-40.68%
3.2 Future
The Earnings Per Share is expected to grow by 16.46% on average over the next years. This is quite good.
Based on estimates for the next years, GCP will show a quite strong growth in Revenue. The Revenue will grow by 9.70% on average per year.
EPS Next Y27.6%
EPS Next 2Y22%
EPS Next 3Y20.12%
EPS Next 5Y16.46%
Revenue Next Year14.17%
Revenue Next 2Y12.39%
Revenue Next 3Y11.29%
Revenue Next 5Y9.7%
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
Based on the Price/Earnings ratio of 47.49, the valuation of GCP can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GCP is on the same level as its industry peers.
GCP is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 36.71 indicates a quite expensive valuation of GCP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GCP indicates a slightly more expensive valuation: GCP is more expensive than 60.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.89, GCP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.49 | ||
| Fwd PE | 36.71 |
4.2 Price Multiples
GCP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GCP is more expensive than 75.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GCP is valued a bit more expensive than 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.34 | ||
| EV/EBITDA | 35.82 |
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 20.12% in the coming years.
PEG (NY)1.72
PEG (5Y)N/A
EPS Next 2Y22%
EPS Next 3Y20.12%
5. Dividend
5.1 Amount
GCP has a yearly dividend return of 0.58%, which is pretty low.
Compared to an average industry Dividend Yield of 1.18, GCP has a dividend in line with its industry peers.
With a Dividend Yield of 0.58, GCP pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
17.50% 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.
DP17.5%
EPS Next 2Y22%
EPS Next 3Y20.12%
FRA:GCP (7/4/2025, 7:00:00 PM)
208.5
-3 (-1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.98%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap222.34B
Analysts82.86
Price Target218.01 (4.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.79
Dividend Growth(5Y)9.39%
DP17.5%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.35%
Min EPS beat(2)13.68%
Max EPS beat(2)23.03%
EPS beat(4)3
Avg EPS beat(4)13.3%
Min EPS beat(4)-1.74%
Max EPS beat(4)23.03%
EPS beat(8)7
Avg EPS beat(8)21.19%
EPS beat(12)11
Avg EPS beat(12)35.48%
EPS beat(16)15
Avg EPS beat(16)32.75%
Revenue beat(2)1
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-2.98%
Max Revenue beat(2)0.87%
Revenue beat(4)1
Avg Revenue beat(4)-2.88%
Min Revenue beat(4)-5.66%
Max Revenue beat(4)0.87%
Revenue beat(8)4
Avg Revenue beat(8)1.15%
Revenue beat(12)4
Avg Revenue beat(12)-19.58%
Revenue beat(16)4
Avg Revenue beat(16)-22.45%
PT rev (1m)7.54%
PT rev (3m)1.24%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)6.31%
EPS NY rev (1m)0.48%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.46%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.49 | ||
| Fwd PE | 36.71 | ||
| P/S | 6.59 | ||
| P/FCF | 59.34 | ||
| P/OCF | 50.04 | ||
| P/B | 13.59 | ||
| P/tB | 41.67 | ||
| EV/EBITDA | 35.82 |
EPS(TTM)4.39
EY2.11%
EPS(NY)5.68
Fwd EY2.72%
FCF(TTM)3.51
FCFY1.69%
OCF(TTM)4.17
OCFY2%
SpS31.62
BVpS15.34
TBVpS5
PEG (NY)1.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 36.34% | ||
| ROCE | 7.28% | ||
| ROIC | 5.12% | ||
| ROICexc | 6.03% | ||
| ROICexgc | 7.27% | ||
| OM | 16.35% | ||
| PM (TTM) | 17.63% | ||
| GM | 35.83% | ||
| FCFM | 11.11% |
ROA(3y)3.55%
ROA(5y)1.86%
ROE(3y)22.52%
ROE(5y)13.1%
ROIC(3y)2.53%
ROIC(5y)N/A
ROICexc(3y)3.02%
ROICexc(5y)N/A
ROICexgc(3y)3.58%
ROICexgc(5y)N/A
ROCE(3y)3.6%
ROCE(5y)N/A
ROICexcg growth 3Y385.39%
ROICexcg growth 5Y24.01%
ROICexc growth 3Y412.86%
ROICexc growth 5Y26.63%
OM growth 3Y396.9%
OM growth 5Y30.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.73%
GM growth 5Y6.44%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.44 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 85.31% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.18% | ||
| Profit Quality | 63.03% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.94 |
F-Score6
WACC9.85%
ROIC/WACC0.52
Cap/Depr(3y)67.38%
Cap/Depr(5y)59.46%
Cap/Sales(3y)3.4%
Cap/Sales(5y)2.98%
Profit Quality(3y)3112.18%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.03%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%81.71%
EPS Next Y27.6%
EPS Next 2Y22%
EPS Next 3Y20.12%
EPS Next 5Y16.46%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%-40.68%
Revenue Next Year14.17%
Revenue Next 2Y12.39%
Revenue Next 3Y11.29%
Revenue Next 5Y9.7%
EBIT growth 1Y61.62%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year36.34%
EBIT Next 3Y19.37%
EBIT Next 5Y13.76%
FCF growth 1Y-8.05%
FCF growth 3Y23.11%
FCF growth 5Y-10.02%
OCF growth 1Y-15.88%
OCF growth 3Y12.23%
OCF growth 5Y-11.62%