GENERAL ELECTRIC (GCP.DE) Stock Fundamental Analysis
FRA:GCP - Deutsche Boerse Ag - US3696043013 - Common Stock - Currency: EUR
Overall GCP gets a fundamental rating of 5 out of 10. We evaluated GCP against 45 industry peers in the Aerospace & Defense industry. GCP scores excellent on profitability, but there are some minor concerns on its financial health. GCP is quite expensive at the moment. It does show a decent growth rate.
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.
GCP had positive earnings in 4 of the past 5 years.
In the past 5 years GCP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.64%, GCP belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
The Return On Equity of GCP (36.34%) is better than 95.56% of its industry peers.
The Return On Invested Capital of GCP (5.12%) is comparable to the rest of the industry.
GCP had an Average Return On Invested Capital over the past 3 years of 2.53%. This is significantly below the industry average of 8.98%.
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
GCP has a better Profit Margin (17.63%) than 97.78% of its industry peers.
GCP's Operating Margin of 16.35% is amongst the best of the industry. GCP outperforms 93.33% of its industry peers.
In the last couple of years the Operating Margin of GCP has grown nicely.
GCP's Gross Margin of 35.83% is in line compared 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
The debt/assets ratio for GCP is higher compared to a year ago.
2.2 Solvency
GCP has an Altman-Z score of 3.06. This indicates that GCP is financially healthy and has little risk of bankruptcy at the moment.
GCP has a Altman-Z score of 3.06. This is in the better half of the industry: GCP outperforms 64.44% of its industry peers.
The Debt to FCF ratio of GCP is 4.44, which is a neutral value as it means it would take GCP, 4.44 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.44, GCP perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that GCP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.91, GCP is not doing good in the industry: 71.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.49
WACC10.51%
2.3 Liquidity
A Current Ratio of 1.08 indicates that GCP should not have too much problems paying its short term obligations.
GCP has a worse Current ratio (1.08) than 71.11% of its industry peers.
GCP has a Quick Ratio of 1.08. 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 Quick ratio (0.77) which is comparable to the rest of the 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.
Looking at the last year, GCP shows a quite strong growth in Revenue. The Revenue has grown by 8.81% in the last year.
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.
GCP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.70% yearly.
EPS Next Y27.72%
EPS Next 2Y22.27%
EPS Next 3Y20.29%
EPS Next 5Y16.46%
Revenue Next Year14.17%
Revenue Next 2Y12.4%
Revenue Next 3Y11.31%
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
The Price/Earnings ratio is 51.57, which means the current valuation is very expensive for GCP.
Compared to the rest of the industry, the Price/Earnings ratio of GCP is on the same level as its industry peers.
GCP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.50.
The Price/Forward Earnings ratio is 39.68, which means the current valuation is very expensive for GCP.
Based on the Price/Forward Earnings ratio, GCP is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
GCP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.57 | ||
| Fwd PE | 39.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GCP is valued a bit more expensive than 73.33% of the companies in the same industry.
GCP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.41 | ||
| EV/EBITDA | 38.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GCP has a very decent profitability rating, which may justify a higher PE ratio.
GCP's earnings are expected to grow with 20.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)N/A
EPS Next 2Y22.27%
EPS Next 3Y20.29%
5. Dividend
5.1 Amount
GCP has a yearly dividend return of 0.57%, which is pretty low.
GCP's Dividend Yield is comparable with the industry average which is at 1.09.
With a Dividend Yield of 0.57, GCP pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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 17.50% of its income as dividend. This is a sustainable payout ratio.
GCP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.5%
EPS Next 2Y22.27%
EPS Next 3Y20.29%
FRA:GCP (7/18/2025, 7:00:00 PM)
230
+1 (+0.44%)
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 Cap245.27B
Analysts82.86
Price Target218.01 (-5.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.8
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)6.34%
PT rev (3m)1.24%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)6.24%
EPS NY rev (1m)0.57%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.57 | ||
| Fwd PE | 39.68 | ||
| P/S | 7.16 | ||
| P/FCF | 64.41 | ||
| P/OCF | 54.32 | ||
| P/B | 14.75 | ||
| P/tB | 45.24 | ||
| EV/EBITDA | 38.65 |
EPS(TTM)4.46
EY1.94%
EPS(NY)5.8
Fwd EY2.52%
FCF(TTM)3.57
FCFY1.55%
OCF(TTM)4.23
OCFY1.84%
SpS32.14
BVpS15.59
TBVpS5.08
PEG (NY)1.86
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 | 3.06 |
F-Score6
WACC10.51%
ROIC/WACC0.49
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 Y27.72%
EPS Next 2Y22.27%
EPS Next 3Y20.29%
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 2Y12.4%
Revenue Next 3Y11.31%
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%