GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
USA - NASDAQ:GEHC - US36266G1076 - Common Stock
74.75 USD
+2.44 (+3.37%)
75.59 USD
+0.84 (+1.12%)
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 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
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.
Each year in the past 5 years GEHC had a positive operating cash flow.
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.
The Return On Equity of GEHC (22.19%) is better than 94.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.77%, GEHC belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
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 8.98%.
| 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
With an excellent Profit Margin value of 10.95%, GEHC belongs to the best of the industry, outperforming 84.57% of the companies in the same industry.
In the last couple of years the Profit Margin of GEHC has grown nicely.
GEHC has a better Operating Margin (13.52%) than 81.38% of its industry peers.
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 65.96% of the companies in the same industry.
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
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.
Compared to 1 year ago, GEHC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.81 indicates that GEHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.81, GEHC perfoms like the industry average, outperforming 59.04% of the companies in the same industry.
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.
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.
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 73.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.99
WACC7.84%
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 has a Current ratio of 1.18. This is amonst the worse of the industry: GEHC underperforms 82.98% of its industry peers.
A Quick Ratio of 0.95 indicates that GEHC may have some problems paying its short term obligations.
The Quick ratio of GEHC (0.95) is worse than 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.
Measured over the past 5 years, GEHC shows a small growth in Earnings Per Share. The EPS has been growing by 5.32% on average per year.
GEHC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.52%.
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
The Earnings Per Share is expected to grow by 7.54% on average over the next years.
The Revenue is expected to grow by 3.87% on average over the next years.
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
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
GEHC is valuated correctly with a Price/Earnings ratio of 16.29.
84.57% 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 25.07, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.83, which indicates a correct valuation of GEHC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GEHC indicates a rather cheap valuation: GEHC is cheaper than 85.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, GEHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 14.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEHC is valued cheaply inside the industry as 86.17% of the companies are valued more expensively.
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 | 24.38 | ||
| EV/EBITDA | 11.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GEHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.84
PEG (5Y)3.06
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.
GEHC's Dividend Yield is rather good when compared to the industry average which is at 1.69. GEHC pays more dividend than 90.43% of the companies in the same industry.
With a Dividend Yield of 0.19, GEHC pays less dividend than the S&P500 average, which is at 2.44.
| 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
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%
74.75
+2.44 (+3.37%)
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 Cap34.13B
Revenue(TTM)20.25B
Net Income(TTM)2.22B
Analysts79.29
Price Target88.76 (18.74%)
Short Float %2.47%
Short Ratio3.24
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 | 16.29 | ||
| Fwd PE | 14.83 | ||
| P/S | 1.69 | ||
| P/FCF | 24.38 | ||
| P/OCF | 18.45 | ||
| P/B | 3.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.89 |
EPS(TTM)4.59
EY6.14%
EPS(NY)5.04
Fwd EY6.74%
FCF(TTM)3.07
FCFY4.1%
OCF(TTM)4.05
OCFY5.42%
SpS44.34
BVpS21.89
TBVpS-10.1
PEG (NY)4.84
PEG (5Y)3.06
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 | 1.81 |
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 16.29 and the Price/Book (PB) ratio is 3.42.
Can you provide the financial health for GEHC stock?
The financial health rating of GE HEALTHCARE TECHNOLOGY (GEHC) is 3 / 10.