GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
USA - NASDAQ:GEHC - US36266G1076 - Common Stock
70.63 USD
-2.52 (-3.44%)
70.63 USD
0 (0%)
GEHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 188 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GEHC had positive earnings in the past year.
In the past year GEHC had a positive cash flow from operations.
In the past 5 years GEHC has always been profitable.
In the past 5 years GEHC always reported a positive cash flow from operatings.
1.2 Ratios
GEHC's Return On Assets of 6.14% is amongst the best of the industry. GEHC outperforms 83.51% of its industry peers.
GEHC has a Return On Equity of 22.19%. This is amongst the best in the industry. GEHC outperforms 94.68% of its industry peers.
GEHC's Return On Invested Capital of 7.77% is amongst the best of the industry. GEHC outperforms 84.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GEHC is in line with the industry average of 8.98%.
| 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
Looking at the Profit Margin, with a value of 10.95%, GEHC belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
GEHC's Profit Margin has improved in the last couple of years.
The Operating Margin of GEHC (13.52%) is better than 81.38% 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 has a worse Gross Margin (40.80%) than 65.96% of its industry peers.
In the last couple of years the Gross Margin of GEHC has remained more or less at the same level.
| 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
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.
The debt/assets ratio for GEHC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.82 indicates that GEHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GEHC has a Altman-Z score (1.82) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of GEHC (7.38) is better than 74.47% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that GEHC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.83, GEHC is not doing good in the industry: 72.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.99
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.18 indicates that GEHC should not have too much problems paying its short term obligations.
GEHC has a Current ratio of 1.18. This is amonst the worse of the industry: GEHC underperforms 82.98% 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.
GEHC has a Quick ratio of 0.95. This is amonst the worse of the industry: GEHC underperforms 80.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.77% over the past year.
The Earnings Per Share has been growing slightly by 5.32% on average over the past years.
The Revenue has been growing slightly by 3.52% in the past year.
GEHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.41% yearly.
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.
GEHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
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.
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
A Price/Earnings ratio of 15.39 indicates a correct valuation of GEHC.
Based on the Price/Earnings ratio, GEHC is valued cheaply inside the industry as 85.11% of the companies are valued more expensively.
GEHC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 14.01, GEHC is valued correctly.
Based on the Price/Forward Earnings ratio, GEHC is valued cheaply inside the industry as 86.17% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, GEHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
GEHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GEHC is cheaper than 86.17% 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 82.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.03 | ||
| EV/EBITDA | 12 |
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)4.58
PEG (5Y)2.89
EPS Next 2Y5.96%
EPS Next 3Y7.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, GEHC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.69, GEHC pays a better dividend. On top of this GEHC pays more dividend than 90.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 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
2.80% of the earnings are spent on dividend by GEHC. This is a low number and sustainable payout ratio.
DP2.8%
EPS Next 2Y5.96%
EPS Next 3Y7.85%
70.63
-2.52 (-3.44%)
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 Change0.77%
Ins Owners0.28%
Ins Owner Change-0.02%
Market Cap32.25B
Revenue(TTM)20.25B
Net Income(TTM)2.22B
Analysts79.29
Price Target88.76 (25.67%)
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)1.3%
EPS NY rev (1m)0.68%
EPS NY rev (3m)11.68%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 14.01 | ||
| P/S | 1.59 | ||
| P/FCF | 23.03 | ||
| P/OCF | 17.43 | ||
| P/B | 3.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12 |
EPS(TTM)4.59
EY6.5%
EPS(NY)5.04
Fwd EY7.14%
FCF(TTM)3.07
FCFY4.34%
OCF(TTM)4.05
OCFY5.74%
SpS44.34
BVpS21.89
TBVpS-10.1
PEG (NY)4.58
PEG (5Y)2.89
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 | 1.82 |
F-Score5
WACC7.84%
ROIC/WACC0.99
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 15.39 and the Price/Book (PB) ratio is 3.23.
Can you provide the financial health for GEHC stock?
The financial health rating of GE HEALTHCARE TECHNOLOGY (GEHC) is 3 / 10.