GENERAL ELECTRIC (GE)

US3696041033 - Common Stock

181.15  +2.45 (+1.37%)

After market: 181.366 +0.22 (+0.12%)

Fundamental Rating

5

Overall GE gets a fundamental rating of 5 out of 10. We evaluated GE against 65 industry peers in the Aerospace & Defense industry. GE has an average financial health and profitability rating. GE has a valuation in line with the averages, but it does not seem to be growing.



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6

1. Profitability

1.1 Basic Checks

In the past year GE was profitable.
In the past year GE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: GE reported negative net income in multiple years.
In the past 5 years GE always reported a positive cash flow from operatings.

1.2 Ratios

GE has a Return On Assets (4.93%) which is in line with its industry peers.
With an excellent Return On Equity value of 33.11%, GE belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
GE's Return On Invested Capital of 4.26% is in line compared to the rest of the industry. GE outperforms 44.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GE is significantly below the industry average of 7.78%.
The last Return On Invested Capital (4.26%) for GE is above the 3 year average (1.62%), which is a sign of increasing profitability.
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

1.3 Margins

The Profit Margin of GE (13.21%) is better than 89.23% of its industry peers.
In the last couple of years the Profit Margin of GE has grown nicely.
With a decent Operating Margin value of 10.77%, GE is doing good in the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Operating Margin of GE has declined.
The Gross Margin of GE (30.41%) is better than 73.85% of its industry peers.
GE's Gross Margin has been stable in the last couple of years.
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%

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GE is destroying value.
Compared to 1 year ago, GE has about the same amount of shares outstanding.
The number of shares outstanding for GE remains at a similar level compared to 5 years ago.
Compared to 1 year ago, GE has an improved debt to assets ratio.

2.2 Solvency

GE has an Altman-Z score of 2.51. This is not the best score and indicates that GE is in the grey zone with still only limited risk for bankruptcy at the moment.
GE has a Altman-Z score (2.51) which is comparable to the rest of the industry.
GE has a debt to FCF ratio of 3.79. This is a good value and a sign of high solvency as GE would need 3.79 years to pay back of all of its debts.
GE has a better Debt to FCF ratio (3.79) than 80.00% of its industry peers.
GE has a Debt/Equity ratio of 0.97. This is a neutral value indicating GE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.97, GE is not doing good in the industry: 72.31% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF 3.79
Altman-Z 2.51
ROIC/WACC0.48
WACC8.81%

2.3 Liquidity

A Current Ratio of 1.13 indicates that GE should not have too much problems paying its short term obligations.
The Current ratio of GE (1.13) is worse than 70.77% 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.
The Quick ratio of GE (0.85) is worse than 67.69% of its industry peers.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 0.85

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 39.53% over the past year.
Measured over the past years, GE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.91% on average per year.
The Revenue for GE has decreased by -32.71% in the past year. This is quite bad
Measured over the past years, GE shows a decrease in Revenue. The Revenue has been decreasing by -6.87% on average per year.
EPS 1Y (TTM)39.53%
EPS 3Y106.06%
EPS 5Y-11.91%
EPS Q2Q%40.24%
Revenue 1Y (TTM)-32.71%
Revenue growth 3Y-3.59%
Revenue growth 5Y-6.87%
Sales Q2Q%-48.44%

3.2 Future

The Earnings Per Share is expected to grow by 22.91% on average over the next years. This is a very strong growth
GE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.44% yearly.
EPS Next Y59.12%
EPS Next 2Y38.9%
EPS Next 3Y32.24%
EPS Next 5Y22.91%
Revenue Next Year-45.88%
Revenue Next 2Y-22.08%
Revenue Next 3Y-12.3%
Revenue Next 5Y-6.44%

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 stable.

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 43.13, which means the current valuation is very expensive for GE.
GE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.29. GE is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 33.53, the valuation of GE can be described as expensive.
Based on the Price/Forward Earnings ratio, GE is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, GE is valued a bit more expensive.
Industry RankSector Rank
PE 43.13
Fwd PE 33.53

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as GE.
73.85% of the companies in the same industry are more expensive than GE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 37.27
EV/EBITDA 30.36

4.3 Compensation for Growth

GE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GE may justify a higher PE ratio.
GE's earnings are expected to grow with 32.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y38.9%
EPS Next 3Y32.24%

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4

5. Dividend

5.1 Amount

With a yearly dividend of 0.63%, GE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.36, GE pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.63, GE pays less dividend than the S&P500 average, which is at 2.19.
Industry RankSector Rank
Dividend Yield 0.63%

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

5.3 Sustainability

12.64% of the earnings are spent on dividend by GE. This is a low number and sustainable payout ratio.
DP12.64%
EPS Next 2Y38.9%
EPS Next 3Y32.24%

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GENERAL ELECTRIC

NYSE:GE (11/22/2024, 8:04:00 PM)

After market: 181.366 +0.22 (+0.12%)

181.15

+2.45 (+1.37%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap196.06B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.63%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 43.13
Fwd PE 33.53
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.73
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.93%
ROE 33.11%
ROCE
ROIC
ROICexc
ROICexgc
OM 10.77%
PM (TTM) 13.21%
GM 30.41%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.13
Quick Ratio 0.85
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)39.53%
EPS 3Y106.06%
EPS 5Y
EPS Q2Q%
EPS Next Y59.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-32.71%
Revenue growth 3Y-3.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y