GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
USA - NASDAQ:GEHC - US36266G1076 - Common Stock
73.15 USD
-0.82 (-1.11%)
73.1189 USD
-0.03 (-0.04%)
GEHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. GEHC has an excellent profitability rating, but there are concerns on its financial health. GEHC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GEHC was profitable.
In the past year GEHC had a positive cash flow from operations.
In the past 5 years GEHC has always been profitable.
Each year in the past 5 years GEHC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GEHC (6.14%) is better than 83.60% of its industry peers.
GEHC's Return On Equity of 22.19% is amongst the best of the industry. GEHC outperforms 94.18% of its industry peers.
GEHC has a Return On Invested Capital of 7.77%. This is amongst the best in the industry. GEHC outperforms 84.66% of its industry peers.
GEHC had an Average Return On Invested Capital over the past 3 years of 8.36%. This is in line with the industry average of 8.99%.
| 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
The Profit Margin of GEHC (10.95%) is better than 83.60% of its industry peers.
In the last couple of years the Profit Margin of GEHC has grown nicely.
With an excellent Operating Margin value of 13.52%, GEHC belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
GEHC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 40.80%, GEHC is doing worse than 65.61% of the companies in the same industry.
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 just above the Cost of Capital (WACC), which means it is creating some 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 1.83 indicates that GEHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GEHC's Altman-Z score of 1.83 is in line compared to the rest of the industry. GEHC outperforms 58.20% of its industry peers.
GEHC has a debt to FCF ratio of 7.38. This is a slightly negative value and a sign of low solvency as GEHC would need 7.38 years to pay back of all of its debts.
GEHC has a better Debt to FCF ratio (7.38) than 75.13% of its industry peers.
GEHC has a Debt/Equity ratio of 0.83. This is a neutral value indicating GEHC is somewhat dependend on debt financing.
The Debt to Equity ratio of GEHC (0.83) is worse than 73.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 1.83 |
ROIC/WACC1
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.18 indicates that GEHC should not have too much problems paying 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 83.07% of its industry peers.
GEHC has a Quick Ratio of 1.18. This is a bad value and indicates that GEHC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.95, GEHC is doing worse than 79.89% of the companies in the same industry.
| 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.
Looking at the last year, GEHC shows a small growth in Revenue. The Revenue has grown by 3.52% 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)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.
Based on estimates for the next years, GEHC will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
EPS Next Y3.36%
EPS Next 2Y5.96%
EPS Next 3Y7.85%
EPS Next 5Y7.54%
Revenue Next Year4.23%
Revenue Next 2Y4.34%
Revenue Next 3Y4.39%
Revenue Next 5Y3.87%
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 accelerating.
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
Based on the Price/Earnings ratio of 15.94, the valuation of GEHC can be described as correct.
Based on the Price/Earnings ratio, GEHC is valued cheaper than 84.13% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, GEHC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.51, GEHC is valued correctly.
Based on the Price/Forward Earnings ratio, GEHC is valued cheaper than 86.24% of the companies in the same industry.
GEHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 14.51 |
4.2 Price Multiples
86.24% of the companies in the same industry are more expensive than GEHC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GEHC is valued cheaply inside the industry as 83.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.86 | ||
| EV/EBITDA | 12.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of GEHC may justify a higher PE ratio.
PEG (NY)4.74
PEG (5Y)2.99
EPS Next 2Y5.96%
EPS Next 3Y7.85%
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 1.89, GEHC pays a better dividend. On top of this GEHC pays more dividend than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, GEHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
GEHC has paid a dividend for less than 5 years, so there is no long track record yet.
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 2Y5.96%
EPS Next 3Y7.85%
73.15
-0.82 (-1.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners87.02%
Inst Owner Change0.49%
Ins Owners0.28%
Ins Owner Change0.09%
Market Cap33.40B
Revenue(TTM)20.25B
Net Income(TTM)2.22B
Analysts79.29
Price Target88.76 (21.34%)
Short Float %1.74%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.54%
Min EPS beat(2)-0.16%
Max EPS beat(2)13.24%
EPS beat(4)3
Avg EPS beat(4)8.5%
Min EPS beat(4)-0.16%
Max EPS beat(4)13.24%
EPS beat(8)6
Avg EPS beat(8)5.72%
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)0
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)-0.75%
Revenue beat(4)1
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)0.42%
Revenue beat(8)2
Avg Revenue beat(8)-1.64%
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)-0.64%
PT rev (3m)0.01%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)0.68%
EPS NY rev (3m)11.68%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 14.51 | ||
| P/S | 1.65 | ||
| P/FCF | 23.86 | ||
| P/OCF | 18.05 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.12 |
EPS(TTM)4.59
EY6.27%
EPS(NY)5.04
Fwd EY6.89%
FCF(TTM)3.07
FCFY4.19%
OCF(TTM)4.05
OCFY5.54%
SpS44.34
BVpS21.89
TBVpS-10.1
PEG (NY)4.74
PEG (5Y)2.99
Graham Number47.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 22.19% | ||
| ROCE | 10.51% | ||
| ROIC | 7.77% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 27.2% | ||
| OM | 13.52% | ||
| PM (TTM) | 10.95% | ||
| GM | 40.8% | ||
| FCFM | 6.91% |
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%
ROICexgc growth 3Y-14.77%
ROICexgc 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.38 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 78.67% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 55.91% | ||
| Profit Quality | 63.15% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.83 |
F-Score5
WACC7.81%
ROIC/WACC1
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)8.77%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%-6.14%
EPS Next Y3.36%
EPS Next 2Y5.96%
EPS Next 3Y7.85%
EPS Next 5Y7.54%
Revenue 1Y (TTM)3.52%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%5.76%
Revenue Next Year4.23%
Revenue Next 2Y4.34%
Revenue Next 3Y4.39%
Revenue Next 5Y3.87%
EBIT growth 1Y8.91%
EBIT growth 3Y-2.07%
EBIT growth 5Y4.33%
EBIT Next Year18.48%
EBIT Next 3Y10.61%
EBIT Next 5Y9.55%
FCF growth 1Y-18.75%
FCF growth 3Y4.48%
FCF growth 5Y0.56%
OCF growth 1Y-11.61%
OCF growth 3Y6.68%
OCF growth 5Y1.2%
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 of GE HEALTHCARE TECHNOLOGY (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.
Can you provide the PE and PB ratios for GEHC stock?
The Price/Earnings (PE) ratio for GE HEALTHCARE TECHNOLOGY (GEHC) is 15.94 and the Price/Book (PB) ratio is 3.34.
Can you provide the financial health for GEHC stock?
The financial health rating of GE HEALTHCARE TECHNOLOGY (GEHC) is 3 / 10.