GENERAL ELECTRIC (GE)
US3696041033 - Common Stock
GE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 industry peers in the Aerospace & Defense industry. GE has an average financial health and profitability rating. GE is valued correctly, but it does not seem to be growing.
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
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.
The Return On Equity of GE (33.11%) is better than 96.88% of its industry peers.
GE has a Return On Invested Capital (4.26%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for GE is significantly below the industry average of 7.71%.
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 Rank | Sector 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 85.94% of its industry peers.
In the last couple of years the Profit Margin of GE has grown nicely.
GE has a better Operating Margin (10.77%) than 76.56% of its industry peers.
GE's Operating Margin has declined in the last couple of years.
GE's Gross Margin of 30.41% is fine compared to the rest of the industry. GE outperforms 75.00% of its industry peers.
GE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
GE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GE has about the same amout of shares outstanding than it did 1 year ago.
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 2.45. 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 (2.45) which is in line with its industry peers.
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.
The Debt to FCF ratio of GE (3.79) is better than 76.56% 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: 73.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.44
WACC9.58%
2.3 Liquidity
GE has a Current Ratio of 1.13. This is a normal value and indicates that GE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.13, GE is not doing good in the industry: 76.56% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that GE may have some problems paying its short term obligations.
The Quick ratio of GE (0.85) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.53% over the past year.
The earnings per share for GE have been decreasing by -11.91% on average. This is quite bad
The Revenue for GE has decreased by -32.71% in the past year. This is quite bad
GE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.87% yearly.
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
GE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.86% yearly.
The Revenue is expected to decrease by -5.60% on average over the next years.
EPS Next Y59.12%
EPS Next 2Y39.01%
EPS Next 3Y32.27%
EPS Next 5Y23.86%
Revenue Next Year-45.9%
Revenue Next 2Y-22.13%
Revenue Next 3Y-12.33%
Revenue Next 5Y-5.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 40.83, which means the current valuation is very expensive for GE.
GE's Price/Earnings is on the same level as the industry average.
GE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.54.
The Price/Forward Earnings ratio is 31.69, which means the current valuation is very expensive for GE.
GE's Price/Forward Earnings ratio is in line with the industry average.
GE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.83 | ||
| Fwd PE | 31.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GE.
Based on the Price/Free Cash Flow ratio, GE is valued a bit cheaper than 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.29 | ||
| EV/EBITDA | 28.75 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as GE's earnings are expected to grow with 32.27% in the coming years.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y39.01%
EPS Next 3Y32.27%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, GE is not a good candidate for dividend investing.
GE's Dividend Yield is a higher than the industry average which is at 1.46.
Compared to an average S&P500 Dividend Yield of 2.36, GE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of GE decreases each year by -33.36%.
GE has been paying a dividend for at least 10 years, so it has 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
GE pays out 12.64% of its income as dividend. This is a sustainable payout ratio.
DP12.64%
EPS Next 2Y39.01%
EPS Next 3Y32.27%
GENERAL ELECTRIC
NYSE:GE (12/24/2024, 8:16:31 PM)
After market: 171.49 0 (0%)171.49
+2.47 (+1.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.69%
Inst Owner Change-0.99%
Ins Owners0.17%
Ins Owner Change-8.27%
Market Cap185.60B
Analysts85.19
Price Target215.64 (25.74%)
Short Float %1.04%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Dividend Growth(5Y)-33.36%
DP12.64%
Div Incr Years2
Div Non Decr Years4
Ex-Date
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)1.68%
PT rev (3m)7.95%
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)-0.04%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.83 | ||
| Fwd PE | 31.69 | ||
| P/S | 3.92 | ||
| P/FCF | 35.29 | ||
| P/OCF | 28.31 | ||
| P/B | 9.83 | ||
| P/tB | 32.29 | ||
| EV/EBITDA | 28.75 |
EPS(TTM)4.2
EY2.45%
EPS(NY)5.41
Fwd EY3.16%
FCF(TTM)4.86
FCFY2.83%
OCF(TTM)6.06
OCFY3.53%
SpS43.72
BVpS17.44
TBVpS5.31
PEG (NY)0.69
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.45 |
F-Score5
WACC9.58%
ROIC/WACC0.44
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)39.53%
EPS 3Y106.06%
EPS 5Y-11.91%
EPS Q2Q%40.24%
EPS Next Y59.12%
EPS Next 2Y39.01%
EPS Next 3Y32.27%
EPS Next 5Y23.86%
Revenue 1Y (TTM)-32.71%
Revenue growth 3Y-3.59%
Revenue growth 5Y-6.87%
Sales Q2Q%-48.44%
Revenue Next Year-45.9%
Revenue Next 2Y-22.13%
Revenue Next 3Y-12.33%
Revenue Next 5Y-5.6%
EBIT growth 1Y42.4%
EBIT growth 3YN/A
EBIT growth 5Y-13.42%
EBIT Next Year44.42%
EBIT Next 3Y22.84%
EBIT Next 5Y16.17%
FCF growth 1Y116.73%
FCF growth 3Y24.97%
FCF growth 5YN/A
OCF growth 1Y70.26%
OCF growth 3Y13.24%
OCF growth 5Y0.79%