GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
NASDAQ:GEHC - Nasdaq - US36266G1076 - Common Stock - Currency: USD
GEHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. While GEHC has a great profitability rating, there are quite some concerns on its financial health. GEHC is not valued too expensively and it also shows a decent growth rate.
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
GEHC's Return On Assets of 6.50% is amongst the best of the industry. GEHC outperforms 87.70% of its industry peers.
With an excellent Return On Equity value of 23.76%, GEHC belongs to the best of the industry, outperforming 95.72% of the companies in the same industry.
The Return On Invested Capital of GEHC (8.50%) is better than 89.30% 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 7.89%.
The 3 year average ROIC (8.36%) for GEHC is below the current ROIC(8.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 23.76% | ||
| ROIC | 8.5% |
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
With an excellent Profit Margin value of 11.03%, GEHC belongs to the best of the industry, outperforming 86.10% of the companies in the same industry.
In the last couple of years the Profit Margin of GEHC has grown nicely.
GEHC has a Operating Margin of 13.71%. This is amongst the best in the industry. GEHC outperforms 81.82% of its industry peers.
GEHC's Operating Margin has been stable in the last couple of years.
The Gross Margin of GEHC (41.99%) is worse than 64.71% of its industry peers.
GEHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.71% | ||
| PM (TTM) | 11.03% | ||
| GM | 41.99% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GEHC is still creating some value.
The number of shares outstanding for GEHC has been increased compared to 1 year ago.
Compared to 1 year ago, GEHC has an improved debt to assets ratio.
2.2 Solvency
GEHC has an Altman-Z score of 1.84. This is not the best score and indicates that GEHC is in the grey zone with still only limited risk for bankruptcy at the moment.
GEHC has a Altman-Z score (1.84) which is in line with its industry peers.
The Debt to FCF ratio of GEHC is 6.40, which is on the high side as it means it would take GEHC, 6.40 years of fcf income to pay off all of its debts.
GEHC has a better Debt to FCF ratio (6.40) than 78.61% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that GEHC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, GEHC is not doing good in the industry: 71.66% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.4 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.03
WACC8.28%
2.3 Liquidity
A Current Ratio of 0.98 indicates that GEHC may have some problems paying its short term obligations.
GEHC's Current ratio of 0.98 is on the low side compared to the rest of the industry. GEHC is outperformed by 90.37% of its industry peers.
A Quick Ratio of 0.76 indicates that GEHC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, GEHC is doing worse than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.29% over the past year.
The Earnings Per Share has been growing slightly by 5.32% on average over the past years.
Looking at the last year, GEHC shows a small growth in Revenue. The Revenue has grown by 1.55% in the last year.
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)15.29%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%12.22%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%2.73%
3.2 Future
The Earnings Per Share is expected to grow by 5.34% on average over the next years.
GEHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.52% yearly.
EPS Next Y-7.65%
EPS Next 2Y2.07%
EPS Next 3Y5.78%
EPS Next 5Y5.34%
Revenue Next Year3.03%
Revenue Next 2Y3.87%
Revenue Next 3Y4.14%
Revenue Next 5Y3.52%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 16.10 indicates a correct valuation of GEHC.
82.89% of the companies in the same industry are more expensive than GEHC, based on the Price/Earnings ratio.
GEHC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.83, the valuation of GEHC can be described as correct.
GEHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. GEHC is cheaper than 81.82% of the companies in the same industry.
GEHC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 15.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEHC is valued cheaper than 85.03% of the companies in the same industry.
GEHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GEHC is cheaper than 85.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.68 | ||
| EV/EBITDA | 12.31 |
4.3 Compensation for Growth
GEHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.02
EPS Next 2Y2.07%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
GEHC has a yearly dividend return of 0.19%, which is pretty low.
Compared to an average industry Dividend Yield of 1.82, GEHC pays a better dividend. On top of this GEHC pays more dividend than 90.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, GEHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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
2.61% of the earnings are spent on dividend by GEHC. This is a low number and sustainable payout ratio.
DP2.61%
EPS Next 2Y2.07%
EPS Next 3Y5.78%
74.07
-0.31 (-0.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.59%
Inst Owner Change-1.49%
Ins Owners0.28%
Ins Owner Change0.44%
Market Cap33.92B
Analysts80.77
Price Target88.82 (19.91%)
Short Float %1.35%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.46%
Min EPS beat(2)8.42%
Max EPS beat(2)12.49%
EPS beat(4)4
Avg EPS beat(4)6.81%
Min EPS beat(4)0.18%
Max EPS beat(4)12.49%
EPS beat(8)7
Avg EPS beat(8)5.57%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)0.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)0.42%
Revenue beat(8)2
Avg Revenue beat(8)-1.79%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.28%
PT rev (3m)-13.08%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-15.9%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-13.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 15.83 | ||
| P/S | 1.71 | ||
| P/FCF | 24.68 | ||
| P/OCF | 19.03 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.31 |
EPS(TTM)4.6
EY6.21%
EPS(NY)4.68
Fwd EY6.32%
FCF(TTM)3
FCFY4.05%
OCF(TTM)3.89
OCFY5.25%
SpS43.24
BVpS20.06
TBVpS-11.85
PEG (NY)N/A
PEG (5Y)3.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 23.76% | ||
| ROCE | 11.49% | ||
| ROIC | 8.5% | ||
| ROICexc | 9.49% | ||
| ROICexgc | 30.64% | ||
| OM | 13.71% | ||
| PM (TTM) | 11.03% | ||
| GM | 41.99% | ||
| FCFM | 6.94% |
ROA(3y)5.75%
ROA(5y)16.59%
ROE(3y)21.16%
ROE(5y)34.2%
ROIC(3y)8.36%
ROIC(5y)9.41%
ROICexc(3y)9.28%
ROICexc(5y)10.16%
ROICexgc(3y)32.48%
ROICexgc(5y)41.69%
ROCE(3y)11.31%
ROCE(5y)12.72%
ROICexcg growth 3Y-14.77%
ROICexcg growth 5YN/A
ROICexc growth 3Y-4.79%
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.4 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 71.83% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 4.74 | ||
| Cash Conversion | 54.3% | ||
| Profit Quality | 62.94% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.84 |
F-Score5
WACC8.28%
ROIC/WACC1.03
Cap/Depr(3y)60.52%
Cap/Depr(5y)52.47%
Cap/Sales(3y)1.9%
Cap/Sales(5y)1.73%
Profit Quality(3y)98.54%
Profit Quality(5y)74.63%
High Growth Momentum
Growth
EPS 1Y (TTM)15.29%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%12.22%
EPS Next Y-7.65%
EPS Next 2Y2.07%
EPS Next 3Y5.78%
EPS Next 5Y5.34%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%2.73%
Revenue Next Year3.03%
Revenue Next 2Y3.87%
Revenue Next 3Y4.14%
Revenue Next 5Y3.52%
EBIT growth 1Y12.33%
EBIT growth 3Y-2.07%
EBIT growth 5Y4.33%
EBIT Next Year11.86%
EBIT Next 3Y9.57%
EBIT Next 5Y8.87%
FCF growth 1Y-9.57%
FCF growth 3Y4.48%
FCF growth 5Y0.56%
OCF growth 1Y-7.14%
OCF growth 3Y6.68%
OCF growth 5Y1.2%