79.77 USD
-2.12 (-2.59%)
79.51 USD
-0.26 (-0.33%)
Taking everything into account, GEHC scores 5 out of 10 in our fundamental rating. GEHC was compared to 184 industry peers in the Health Care Equipment & Supplies industry. GEHC scores excellent on profitability, but there are concerns on its financial health. GEHC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- GEHC had positive earnings in the past year.
- GEHC had a positive operating cash flow in the past year.
- GEHC had positive earnings in each of the past 5 years.
- GEHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 6.14%, GEHC belongs to the best of the industry, outperforming 84.41% of the companies in the same industry.
- GEHC's Return On Equity of 22.19% is amongst the best of the industry. GEHC outperforms 95.16% of its industry peers.
- The Return On Invested Capital of GEHC (7.77%) is better than 83.87% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GEHC is in line with the industry average of 8.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 22.19% | ||
| ROIC | 7.77% |
ROA(3y)5.75%
ROA(5y)16.59%
ROE(3y)21.16%
ROE(5y)34.2%
ROIC(3y)8.36%
ROIC(5y)9.41%
1.3 Margins
- GEHC's Profit Margin of 10.95% is amongst the best of the industry. GEHC outperforms 84.95% of its industry peers.
- GEHC's Profit Margin has improved in the last couple of years.
- GEHC's Operating Margin of 13.52% is amongst the best of the industry. GEHC outperforms 81.72% of its industry peers.
- In the last couple of years the Operating Margin of GEHC has remained more or less at the same level.
- GEHC's Gross Margin of 40.80% is on the low side compared to the rest of the industry. GEHC is outperformed by 67.20% of its industry peers.
- GEHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.52% | ||
| PM (TTM) | 10.95% | ||
| GM | 40.8% |
OM growth 3Y-5.66%
OM growth 5Y0.88%
PM growth 3Y-7.45%
PM growth 5Y2.03%
GM growth 3Y0.74%
GM growth 5Y1.16%
2. Health
2.1 Basic Checks
- GEHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- GEHC has more shares outstanding than it did 1 year ago.
- GEHC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.89 indicates that GEHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- GEHC has a Altman-Z score of 1.89. This is comparable to the rest of the industry: GEHC outperforms 58.06% of its industry peers.
- The Debt to FCF ratio of GEHC is 7.38, which is on the high side as it means it would take GEHC, 7.38 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 7.38, GEHC is doing good in the industry, outperforming 74.73% of the companies in the same industry.
- GEHC has a Debt/Equity ratio of 0.83. This is a neutral value indicating GEHC is somewhat dependend on debt financing.
- GEHC's Debt to Equity ratio of 0.83 is on the low side compared to the rest of the industry. GEHC is outperformed by 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.8
WACC9.76%
2.3 Liquidity
- GEHC has a Current Ratio of 1.18. This is a normal value and indicates that GEHC is financially healthy and should not expect problems in meeting its short term obligations.
- GEHC's Current ratio of 1.18 is on the low side compared to the rest of the industry. GEHC is outperformed by 81.18% of its industry peers.
- A Quick Ratio of 0.95 indicates that GEHC may have some problems paying its short term obligations.
- With a Quick ratio value of 0.95, GEHC is not doing good in the industry: 77.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- GEHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.77%, which is quite good.
- The Earnings Per Share has been growing slightly by 5.32% on average over the past years.
- GEHC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.52%.
- Measured over the past years, GEHC shows a small growth in Revenue. The Revenue has been growing by 3.41% on average per year.
EPS 1Y (TTM)8.77%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%-6.14%
Revenue 1Y (TTM)3.52%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%5.76%
3.2 Future
- Based on estimates for the next years, GEHC will show a small growth in Earnings Per Share. The EPS will grow by 7.54% on average per year.
- The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y3.45%
EPS Next 2Y5.89%
EPS Next 3Y7.69%
EPS Next 5Y7.54%
Revenue Next Year4.24%
Revenue Next 2Y4.29%
Revenue Next 3Y4.37%
Revenue Next 5Y3.87%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 17.38, GEHC is valued on the expensive side.
- Based on the Price/Earnings ratio, GEHC is valued cheaper than 85.48% of the companies in the same industry.
- GEHC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.85, the valuation of GEHC can be described as correct.
- Based on the Price/Forward Earnings ratio, GEHC is valued cheaper than 88.17% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GEHC to the average of the S&P500 Index (25.98), we can say GEHC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 15.85 |
4.2 Price Multiples
- GEHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GEHC is cheaper than 85.48% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GEHC indicates a rather cheap valuation: GEHC is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.95 | ||
| EV/EBITDA | 12.89 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GEHC does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of GEHC may justify a higher PE ratio.
PEG (NY)5.03
PEG (5Y)3.26
EPS Next 2Y5.89%
EPS Next 3Y7.69%
5. Dividend
5.1 Amount
- GEHC has a yearly dividend return of 0.17%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.20, GEHC pays a better dividend. On top of this GEHC pays more dividend than 89.78% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, GEHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
5.2 History
- GEHC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- GEHC pays out 2.80% of its income as dividend. This is a sustainable payout ratio.
DP2.8%
EPS Next 2Y5.89%
EPS Next 3Y7.69%
GE HEALTHCARE TECHNOLOGY / GEHC FAQ
What is the fundamental rating for GEHC stock?
ChartMill assigns a fundamental rating of 5 / 10 to GEHC.
What is the valuation status for GEHC stock?
ChartMill assigns a valuation rating of 6 / 10 to GE HEALTHCARE TECHNOLOGY (GEHC). This can be considered as Fairly Valued.
How profitable is GE HEALTHCARE TECHNOLOGY (GEHC) stock?
GE HEALTHCARE TECHNOLOGY (GEHC) has a profitability rating of 7 / 10.
What is the financial health of GE HEALTHCARE TECHNOLOGY (GEHC) stock?
The financial health rating of GE HEALTHCARE TECHNOLOGY (GEHC) is 3 / 10.
Can you provide the dividend sustainability for GEHC stock?
The dividend rating of GE HEALTHCARE TECHNOLOGY (GEHC) is 3 / 10 and the dividend payout ratio is 2.8%.