GENERAL ELECTRIC (GCP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GCP - US3696043013 - Common Stock
248 EUR
+0.5 (+0.2%)
We assign a fundamental rating of 5 out of 10 to GCP. GCP was compared to 53 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.
- The reported net income has been mixed in the past 5 years: GCP reported negative net income in multiple years.
- GCP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.29%, GCP is in the better half of the industry, outperforming 79.25% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 42.86%, GCP belongs to the top of the industry, outperforming 96.23% of the companies in the same industry.
- GCP has a Return On Invested Capital of 5.98%. This is comparable to the rest of the industry: GCP outperforms 41.51% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GCP is significantly below the industry average of 9.24%.
- The last Return On Invested Capital (5.98%) for GCP is above the 3 year average (2.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 42.86% | ||
| ROIC | 5.98% |
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 (18.34%) than 96.23% of its industry peers.
- GCP's Operating Margin of 17.60% is amongst the best of the industry. GCP outperforms 92.45% of its industry peers.
- In the last couple of years the Operating Margin of GCP has grown nicely.
- GCP has a better Gross Margin (35.88%) than 66.04% of its industry peers.
- In the last couple of years the Gross Margin of GCP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.6% | ||
| PM (TTM) | 18.34% | ||
| GM | 35.88% |
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- GCP has an Altman-Z score of 3.20. This indicates that GCP is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.20, GCP is doing good in the industry, outperforming 64.15% of the companies in the same industry.
- GCP has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as GCP would need 3.23 years to pay back of all of its debts.
- GCP has a better Debt to FCF ratio (3.23) than 73.58% of its industry peers.
- GCP has a Debt/Equity ratio of 1.00. This is a neutral value indicating GCP is somewhat dependend on debt financing.
- GCP's Debt to Equity ratio of 1.00 is on the low side compared to the rest of the industry. GCP is outperformed by 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.6
WACC9.93%
2.3 Liquidity
- A Current Ratio of 1.08 indicates that GCP should not have too much problems paying its short term obligations.
- The Current ratio of GCP (1.08) is worse than 71.70% 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 (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- GCP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.09%, which is quite impressive.
- The Earnings Per Share has been growing by 81.94% on average over the past years. This is a very strong growth
EPS 1Y (TTM)42.09%
EPS 3Y28.46%
EPS 5Y81.94%
EPS Q2Q%18.94%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%20.1%
3.2 Future
- The Earnings Per Share is expected to grow by 12.84% 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 8.41% yearly.
EPS Next Y14.77%
EPS Next 2Y15.85%
EPS Next 3Y14.33%
EPS Next 5Y12.84%
Revenue Next Year13.4%
Revenue Next 2Y11.72%
Revenue Next 3Y10.61%
Revenue Next 5Y8.41%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- GCP is valuated quite expensively with a Price/Earnings ratio of 46.01.
- The rest of the industry has a similar Price/Earnings ratio as GCP.
- When comparing the Price/Earnings ratio of GCP to the average of the S&P500 Index (27.25), we can say GCP is valued expensively.
- The Price/Forward Earnings ratio is 40.09, which means the current valuation is very expensive for GCP.
- GCP's Price/Forward Earnings ratio is in line with the industry average.
- GCP is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.01 | ||
| Fwd PE | 40.09 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GCP is valued a bit more expensive than the industry average as 64.15% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GCP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.04 | ||
| EV/EBITDA | 35.25 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GCP does not grow enough to justify the current Price/Earnings ratio.
- GCP has a very decent profitability rating, which may justify a higher PE ratio.
- GCP's earnings are expected to grow with 14.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.11
PEG (5Y)0.56
EPS Next 2Y15.85%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.49%, GCP is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.74, GCP has a dividend in line with its industry peers.
- With a Dividend Yield of 0.49, GCP pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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 17.08% 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.
DP17.08%
EPS Next 2Y15.85%
EPS Next 3Y14.33%
GENERAL ELECTRIC / GCP.DE FAQ
What is the fundamental rating for GCP stock?
ChartMill assigns a fundamental rating of 5 / 10 to GCP.DE.
What is the valuation status of GENERAL ELECTRIC (GCP.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to GENERAL ELECTRIC (GCP.DE). This can be considered as Overvalued.
How profitable is GENERAL ELECTRIC (GCP.DE) stock?
GENERAL ELECTRIC (GCP.DE) has a profitability rating of 7 / 10.
Can you provide the financial health for GCP stock?
The financial health rating of GENERAL ELECTRIC (GCP.DE) is 4 / 10.
Can you provide the expected EPS growth for GCP stock?
The Earnings per Share (EPS) of GENERAL ELECTRIC (GCP.DE) is expected to grow by 14.77% in the next year.