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GENERAL ELECTRIC (GE) Stock Fundamental Analysis

NYSE:GE - New York Stock Exchange, Inc. - US3696041033 - Common Stock - Currency: USD

205.57  +6.47 (+3.25%)

After market: 205.703 +0.13 (+0.06%)

Fundamental Rating

4

Taking everything into account, GE scores 4 out of 10 in our fundamental rating. GE was compared to 65 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of GE while its profitability can be described as average. GE has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

GE had positive earnings in the past year.
In the past year GE had a positive cash flow from operations.
In multiple years GE reported negative net income over the last 5 years.
GE had a positive operating cash flow in 4 of the past 5 years.
GE Yearly Net Income VS EBIT VS OCF VS FCFGE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B -10B -20B

1.2 Ratios

With a decent Return On Assets value of 4.93%, GE is doing good in the industry, outperforming 60.94% of the companies in the same industry.
GE has a better Return On Equity (33.11%) than 96.88% of its industry peers.
GE's Return On Invested Capital of 4.26% is in line compared to the rest of the industry. GE outperforms 45.31% of its industry peers.
GE had an Average Return On Invested Capital over the past 3 years of 1.62%. This is significantly below the industry average of 7.62%.
The 3 year average ROIC (1.62%) for GE is below the current ROIC(4.26%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.93%
ROE 33.11%
ROIC 4.26%
ROA(3y)0.62%
ROA(5y)0.36%
ROE(3y)5.52%
ROE(5y)2.32%
ROIC(3y)1.62%
ROIC(5y)N/A
GE Yearly ROA, ROE, ROICGE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60

1.3 Margins

With an excellent Profit Margin value of 13.21%, GE belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
In the last couple of years the Profit Margin of GE has grown nicely.
Looking at the Operating Margin, with a value of 10.77%, GE is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
GE's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 30.41%, GE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Gross Margin of GE has remained more or less at the same level.
Industry RankSector Rank
OM 10.77%
PM (TTM) 13.21%
GM 30.41%
OM growth 3YN/A
OM growth 5Y-7.03%
PM growth 3Y26.48%
PM growth 5YN/A
GM growth 3Y4%
GM growth 5Y1.27%
GE Yearly Profit, Operating, Gross MarginsGE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GE is destroying value.
GE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
GE Yearly Shares OutstandingGE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
GE Yearly Total Debt VS Total AssetsGE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100B 200B 300B 400B

2.2 Solvency

An Altman-Z score of 2.62 indicates that GE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.62, GE is in line with its industry, outperforming 43.75% of the companies in the same industry.
The Debt to FCF ratio of GE is 3.79, which is a good value as it means it would take GE, 3.79 years of fcf income to pay off all of its debts.
GE has a better Debt to FCF ratio (3.79) than 78.13% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that GE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, GE is doing worse than 73.44% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF 3.79
Altman-Z 2.62
ROIC/WACC0.43
WACC10%
GE Yearly LT Debt VS Equity VS FCFGE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50B 100B

2.3 Liquidity

A Current Ratio of 1.13 indicates that GE should not have too much problems paying its short term obligations.
GE has a Current ratio of 1.13. This is in the lower half of the industry: GE underperforms 76.56% of its industry peers.
GE has a Quick Ratio of 1.13. This is a bad value and indicates that GE is not financially healthy enough and could expect problems in meeting its short term obligations.
GE has a Quick ratio of 0.85. This is in the lower half of the industry: GE underperforms 71.88% of its industry peers.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 0.85
GE Yearly Current Assets VS Current LiabilitesGE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50B 100B 150B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 60.36% over the past year.
Measured over the past years, GE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.65% on average per year.
EPS 1Y (TTM)60.36%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%28.16%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-49.14%

3.2 Future

The Earnings Per Share is expected to grow by 12.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y23.52%
EPS Next 2Y21.55%
EPS Next 3Y19.35%
EPS Next 5Y12.63%
Revenue Next Year12.58%
Revenue Next 2Y11.96%
Revenue Next 3Y9.1%
Revenue Next 5Y8.39%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
GE Yearly Revenue VS EstimatesGE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 50B 100B 150B
GE Yearly EPS VS EstimatesGE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 45.78, the valuation of GE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GE is on the same level as its industry peers.
GE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.51.
A Price/Forward Earnings ratio of 37.07 indicates a quite expensive valuation of GE.
GE's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of GE to the average of the S&P500 Index (93.88), we can say GE is valued rather cheaply.
Industry RankSector Rank
PE 45.78
Fwd PE 37.07
GE Price Earnings VS Forward Price EarningsGE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 200 400 600 800

4.2 Price Multiples

GE's Enterprise Value to EBITDA ratio is in line with the industry average.
GE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GE is cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 42.3
EV/EBITDA 33.34
GE Per share dataGE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of GE may justify a higher PE ratio.
GE's earnings are expected to grow with 19.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.95
PEG (5Y)N/A
EPS Next 2Y21.55%
EPS Next 3Y19.35%

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4

5. Dividend

5.1 Amount

With a yearly dividend of 0.58%, GE is not a good candidate for dividend investing.
GE's Dividend Yield is a higher than the industry average which is at 1.36.
Compared to an average S&P500 Dividend Yield of 2.27, GE's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.58%

5.2 History

The dividend of GE decreases each year by -33.36%.
GE has paid a dividend for at least 10 years, which is a reliable track record.
GE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-33.36%
Div Incr Years2
Div Non Decr Years4
GE Yearly Dividends per shareGE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

5.3 Sustainability

GE pays out 12.64% of its income as dividend. This is a sustainable payout ratio.
DP12.64%
EPS Next 2Y21.55%
EPS Next 3Y19.35%
GE Yearly Income VS Free CF VS DividendGE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B -10B -20B
GE Dividend Payout.GE Dividend Payout, showing the Payout Ratio.GE Dividend Payout.PayoutRetained Earnings

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GENERAL ELECTRIC

NYSE:GE (1/30/2025, 8:04:00 PM)

After market: 205.703 +0.13 (+0.06%)

205.57

+6.47 (+3.25%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-23 2025-01-23/bmo
Earnings (Next)N/A N/A
Inst Owners79.69%
Inst Owner Change-0.3%
Ins Owners0.17%
Ins Owner Change-8.27%
Market Cap222.49B
Analysts85.19
Price Target231.07 (12.4%)
Short Float %1.22%
Short Ratio2.75
Dividend
Industry RankSector Rank
Dividend Yield 0.58%
Yearly Dividend0.54
Dividend Growth(5Y)-33.36%
DP12.64%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.25%
Min EPS beat(2)-1.74%
Max EPS beat(2)18.24%
EPS beat(4)3
Avg EPS beat(4)12.02%
Min EPS beat(4)-1.74%
Max EPS beat(4)21.46%
EPS beat(8)7
Avg EPS beat(8)28.83%
EPS beat(12)11
Avg EPS beat(12)34.86%
EPS beat(16)14
Avg EPS beat(16)36.24%
Revenue beat(2)0
Avg Revenue beat(2)-4.71%
Min Revenue beat(2)-5.66%
Max Revenue beat(2)-3.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-5.66%
Max Revenue beat(4)8.27%
Revenue beat(8)4
Avg Revenue beat(8)1.82%
Revenue beat(12)4
Avg Revenue beat(12)-5.61%
Revenue beat(16)4
Avg Revenue beat(16)-5.5%
PT rev (1m)0.47%
PT rev (3m)2.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.59%
EPS NY rev (1m)0%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.62%
Valuation
Industry RankSector Rank
PE 45.78
Fwd PE 37.07
P/S 4.7
P/FCF 42.3
P/OCF 33.94
P/B 11.79
P/tB 38.71
EV/EBITDA 33.34
EPS(TTM)4.49
EY2.18%
EPS(NY)5.55
Fwd EY2.7%
FCF(TTM)4.86
FCFY2.36%
OCF(TTM)6.06
OCFY2.95%
SpS43.72
BVpS17.44
TBVpS5.31
PEG (NY)1.95
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.93%
ROE 33.11%
ROCE 5.5%
ROIC 4.26%
ROICexc 5.15%
ROICexgc 6.21%
OM 10.77%
PM (TTM) 13.21%
GM 30.41%
FCFM 11.12%
ROA(3y)0.62%
ROA(5y)0.36%
ROE(3y)5.52%
ROE(5y)2.32%
ROIC(3y)1.62%
ROIC(5y)N/A
ROICexc(3y)1.96%
ROICexc(5y)N/A
ROICexgc(3y)2.44%
ROICexgc(5y)N/A
ROCE(3y)2.1%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.73%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.81%
OM growth 3YN/A
OM growth 5Y-7.03%
PM growth 3Y26.48%
PM growth 5YN/A
GM growth 3Y4%
GM growth 5Y1.27%
F-Score5
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF 3.79
Debt/EBITDA 2.8
Cap/Depr 91.2%
Cap/Sales 2.74%
Interest Coverage 250
Cash Conversion 100.61%
Profit Quality 84.17%
Current Ratio 1.13
Quick Ratio 0.85
Altman-Z 2.62
F-Score5
WACC10%
ROIC/WACC0.43
Cap/Depr(3y)54.61%
Cap/Depr(5y)56.86%
Cap/Sales(3y)2.04%
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 Y23.52%
EPS Next 2Y21.55%
EPS Next 3Y19.35%
EPS Next 5Y12.63%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-49.14%
Revenue Next Year12.58%
Revenue Next 2Y11.96%
Revenue Next 3Y9.1%
Revenue Next 5Y8.39%
EBIT growth 1Y42.4%
EBIT growth 3YN/A
EBIT growth 5Y-13.42%
EBIT Next Year44.03%
EBIT Next 3Y22.67%
EBIT Next 5Y17.5%
FCF growth 1Y116.73%
FCF growth 3Y24.97%
FCF growth 5YN/A
OCF growth 1Y70.26%
OCF growth 3Y13.24%
OCF growth 5Y0.79%