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 has a great profitability rating, there are quite some 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
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
GCP has a Return On Assets of 5.64%. This is amongst the best in the industry. GCP outperforms 83.72% of its industry peers.
GCP's Return On Equity of 36.34% is amongst the best of the industry. GCP outperforms 97.67% of its industry peers.
With a Return On Invested Capital value of 5.12%, GCP perfoms like the industry average, outperforming 41.86% of the companies in the same 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 8.70%.
The last Return On Invested Capital (5.12%) for GCP is above the 3 year average (2.53%), which is a sign of increasing profitability.
| 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 97.67% of its industry peers.
Looking at the Operating Margin, with a value of 16.35%, GCP belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
In the last couple of years the Operating Margin of GCP has grown nicely.
With a Gross Margin value of 35.83%, GCP perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
GCP's Gross Margin has improved in the last couple of years.
| 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
GCP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GCP has less shares outstanding
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 2.96. 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 2.96 is fine compared to the rest of the industry. GCP outperforms 67.44% of its industry peers.
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 of 4.44. This is comparable to the rest of the industry: GCP outperforms 55.81% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that GCP is somewhat dependend on debt financing.
The Debt to Equity ratio of GCP (0.91) is worse than 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.51
WACC10.14%
2.3 Liquidity
GCP has a Current Ratio of 1.08. This is a normal value and indicates that GCP is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.08, GCP is not doing good in the industry: 69.77% 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.
GCP has a Quick ratio of 0.77. This is comparable to the rest of the industry: GCP outperforms 48.84% of its industry peers.
| 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.
GCP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.65% yearly.
Looking at the last year, GCP shows a quite strong growth in Revenue. The Revenue has grown by 8.81% in the last year.
GCP shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -15.57% yearly.
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
Based on estimates for the next years, GCP will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.46% on average per year.
The Revenue is expected to grow by 9.70% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 48.07, which means the current valuation is very expensive for GCP.
The rest of the industry has a similar Price/Earnings ratio as GCP.
Compared to an average S&P500 Price/Earnings ratio of 27.29, GCP is valued quite expensively.
The Price/Forward Earnings ratio is 37.11, which means the current valuation is very expensive for GCP.
The rest of the industry has a similar Price/Forward Earnings ratio as GCP.
GCP is valuated expensively when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.07 | ||
| Fwd PE | 37.11 |
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 74.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GCP is valued a bit more expensive than the industry average as 62.79% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.99 | ||
| EV/EBITDA | 36.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GCP has a very decent profitability rating, which 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)1.74
PEG (5Y)N/A
EPS Next 2Y22%
EPS Next 3Y20.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, GCP is not a good candidate for dividend investing.
GCP's Dividend Yield is comparable with the industry average which is at 1.18.
Compared to an average S&P500 Dividend Yield of 2.37, GCP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
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%
EPS Next 3Y20.12%
FRA:GCP (7/7/2025, 7:00:00 PM)
211.5
+3 (+1.44%)
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 Cap225.54B
Analysts82.86
Price Target218.01 (3.08%)
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 | 48.07 | ||
| Fwd PE | 37.11 | ||
| P/S | 6.67 | ||
| P/FCF | 59.99 | ||
| P/OCF | 50.6 | ||
| P/B | 13.74 | ||
| P/tB | 42.13 | ||
| EV/EBITDA | 36.2 |
EPS(TTM)4.4
EY2.08%
EPS(NY)5.7
Fwd EY2.69%
FCF(TTM)3.53
FCFY1.67%
OCF(TTM)4.18
OCFY1.98%
SpS31.73
BVpS15.39
TBVpS5.02
PEG (NY)1.74
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 | 2.96 |
F-Score6
WACC10.14%
ROIC/WACC0.51
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%