GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
USA - NASDAQ:GEHC - US36266G1076 - Common Stock
76.44 USD
-1.52 (-1.95%)
76.44 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to GEHC. GEHC was compared to 191 industry peers in the Health Care Equipment & Supplies industry. While GEHC belongs to the best of the industry regarding profitability, 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.
Each year in the past 5 years GEHC has been profitable.
GEHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GEHC's Return On Assets of 6.31% is amongst the best of the industry. GEHC outperforms 85.34% of its industry peers.
GEHC has a Return On Equity of 23.07%. This is amongst the best in the industry. GEHC outperforms 95.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.93%, GEHC belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GEHC is in line with the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 23.07% | ||
| ROIC | 7.93% |
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 11.22% is amongst the best of the industry. GEHC outperforms 84.82% of its industry peers.
In the last couple of years the Profit Margin of GEHC has grown nicely.
GEHC's Operating Margin of 13.82% is amongst the best of the industry. GEHC outperforms 81.15% of its industry peers.
GEHC's Operating Margin has been stable in the last couple of years.
GEHC's Gross Margin of 41.55% is on the low side compared to the rest of the industry. GEHC is outperformed by 65.44% of its industry peers.
GEHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.82% | ||
| PM (TTM) | 11.22% | ||
| GM | 41.55% |
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.
Compared to 1 year ago, GEHC has more shares outstanding
GEHC has a better debt/assets ratio than last year.
2.2 Solvency
GEHC has an Altman-Z score of 1.85. 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 (1.85) which is comparable to the rest of the industry.
The Debt to FCF ratio of GEHC is 6.59, which is on the high side as it means it would take GEHC, 6.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.59, GEHC is in the better half of the industry, outperforming 77.49% of the companies in the same industry.
GEHC has a Debt/Equity ratio of 0.86. This is a neutral value indicating GEHC is somewhat dependend on debt financing.
The Debt to Equity ratio of GEHC (0.86) is worse than 74.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.02
WACC7.81%
2.3 Liquidity
GEHC has a Current Ratio of 1.16. 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 worse Current ratio (1.16) than 83.25% of its industry peers.
GEHC has a Quick Ratio of 1.16. 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 0.93, GEHC is doing worse than 79.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.50% 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.
The Revenue has been growing slightly by 2.30% in the past year.
The Revenue has been growing slightly by 3.41% on average over the past years.
EPS 1Y (TTM)14.5%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%6%
Revenue 1Y (TTM)2.3%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%3.47%
3.2 Future
The Earnings Per Share is expected to grow by 5.34% on average over the next years.
The Revenue is expected to grow by 3.43% on average over the next years.
EPS Next Y2.72%
EPS Next 2Y5.97%
EPS Next 3Y7.93%
EPS Next 5Y5.34%
Revenue Next Year3.92%
Revenue Next 2Y4.29%
Revenue Next 3Y4.42%
Revenue Next 5Y3.43%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 16.40, GEHC is valued correctly.
Based on the Price/Earnings ratio, GEHC is valued cheaper than 84.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of GEHC to the average of the S&P500 Index (27.30), we can say GEHC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.16, GEHC is valued correctly.
GEHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. GEHC is cheaper than 84.29% 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 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 15.16 |
4.2 Price Multiples
GEHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GEHC is cheaper than 86.91% of the companies in the same industry.
84.82% of the companies in the same industry are more expensive than GEHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.3 | ||
| EV/EBITDA | 12.47 |
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)6.03
PEG (5Y)3.08
EPS Next 2Y5.97%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.18%, 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 90.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, GEHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
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
2.63% of the earnings are spent on dividend by GEHC. This is a low number and sustainable payout ratio.
DP2.63%
EPS Next 2Y5.97%
EPS Next 3Y7.93%
76.44
-1.52 (-1.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.15%
Inst Owner Change-0.97%
Ins Owners0.28%
Ins Owner Change0.09%
Market Cap34.90B
Analysts81.48
Price Target88.75 (16.1%)
Short Float %1.85%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.63%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.83%
Min EPS beat(2)8.42%
Max EPS beat(2)13.24%
EPS beat(4)4
Avg EPS beat(4)10.08%
Min EPS beat(4)6.17%
Max EPS beat(4)13.24%
EPS beat(8)7
Avg EPS beat(8)6.77%
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)-0.33%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)0.42%
Revenue beat(8)2
Avg Revenue beat(8)-1.74%
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%
PT rev (3m)-0.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.54%
EPS NY rev (1m)10.98%
EPS NY rev (3m)11.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.49%
Revenue NY rev (1m)0.88%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 15.16 | ||
| P/S | 1.75 | ||
| P/FCF | 22.3 | ||
| P/OCF | 17.49 | ||
| P/B | 3.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.47 |
EPS(TTM)4.66
EY6.1%
EPS(NY)5.04
Fwd EY6.6%
FCF(TTM)3.43
FCFY4.48%
OCF(TTM)4.37
OCFY5.72%
SpS43.73
BVpS21.27
TBVpS-10.79
PEG (NY)6.03
PEG (5Y)3.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 23.07% | ||
| ROCE | 10.72% | ||
| ROIC | 7.93% | ||
| ROICexc | 9.27% | ||
| ROICexgc | 27.67% | ||
| OM | 13.82% | ||
| PM (TTM) | 11.22% | ||
| GM | 41.55% | ||
| FCFM | 7.84% |
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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 6.59 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 75.84% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 5.15 | ||
| Cash Conversion | 59.96% | ||
| Profit Quality | 69.83% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.85 |
F-Score6
WACC7.81%
ROIC/WACC1.02
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)14.5%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%6%
EPS Next Y2.72%
EPS Next 2Y5.97%
EPS Next 3Y7.93%
EPS Next 5Y5.34%
Revenue 1Y (TTM)2.3%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%3.47%
Revenue Next Year3.92%
Revenue Next 2Y4.29%
Revenue Next 3Y4.42%
Revenue Next 5Y3.43%
EBIT growth 1Y12.47%
EBIT growth 3Y-2.07%
EBIT growth 5Y4.33%
EBIT Next Year13.59%
EBIT Next 3Y10.21%
EBIT Next 5Y8.87%
FCF growth 1Y-8%
FCF growth 3Y4.48%
FCF growth 5Y0.56%
OCF growth 1Y-3.39%
OCF growth 3Y6.68%
OCF growth 5Y1.2%