76.45 USD
+1.7 (+2.27%)
76.47 USD
+0.02 (+0.03%)
We assign a fundamental rating of 5 out of 10 to GEHC. GEHC was compared to 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GEHC was profitable.
GEHC had a positive operating cash flow in the past year.
GEHC had positive earnings in each of the past 5 years.
Each year in the past 5 years GEHC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.14%, GEHC belongs to the best of the industry, outperforming 83.51% of the companies in the same industry.
With an excellent Return On Equity value of 22.19%, GEHC belongs to the best of the industry, outperforming 94.68% of the companies in the same industry.
GEHC's Return On Invested Capital of 7.77% is amongst the best of the industry. GEHC outperforms 83.51% 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 8.71%.
| 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 84.57% of its industry peers.
In the last couple of years the Profit Margin of GEHC has grown nicely.
GEHC has a better Operating Margin (13.52%) than 81.91% 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 66.49% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GEHC is still 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
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.
The Altman-Z score of GEHC (1.85) 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.
Looking at the Debt to FCF ratio, with a value of 7.38, GEHC is in the better half of the industry, outperforming 74.47% of the companies in the same industry.
GEHC has a Debt/Equity ratio of 0.83. This is a neutral value indicating 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: 72.34% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 1.85 |
ROIC/WACC1
WACC7.8%
2.3 Liquidity
A Current Ratio of 1.18 indicates that GEHC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.18, GEHC is not doing good in the industry: 83.51% of the companies in the same industry are doing better.
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.
The Revenue has been growing slightly by 3.52% in the past year.
The Revenue has been growing slightly by 3.41% on average over the past years.
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.
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
With a Price/Earnings ratio of 16.66, GEHC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of GEHC indicates a rather cheap valuation: GEHC is cheaper than 84.04% of the companies listed in the same industry.
GEHC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.47.
Based on the Price/Forward Earnings ratio of 15.16, the valuation of GEHC can be described as correct.
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.
GEHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 15.16 |
4.2 Price Multiples
85.64% of the companies in the same industry are more expensive than GEHC, based on the Enterprise Value to EBITDA ratio.
GEHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GEHC is cheaper than 82.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.87 | ||
| EV/EBITDA | 12.43 |
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)4.95
PEG (5Y)3.13
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 1.74, 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 2.41, 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%
76.45
+1.7 (+2.27%)
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 Change0.92%
Ins Owners0.28%
Ins Owner Change-0.02%
Market Cap34.82B
Revenue(TTM)20.25B
Net Income(TTM)2.22B
Analysts79.29
Price Target89.57 (17.16%)
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)0.28%
PT rev (3m)0.93%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)0.51%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 15.16 | ||
| P/S | 1.72 | ||
| P/FCF | 24.87 | ||
| P/OCF | 18.82 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.43 |
EPS(TTM)4.59
EY6%
EPS(NY)5.04
Fwd EY6.59%
FCF(TTM)3.07
FCFY4.02%
OCF(TTM)4.06
OCFY5.31%
SpS44.45
BVpS21.94
TBVpS-10.12
PEG (NY)4.95
PEG (5Y)3.13
Graham Number47.6
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 | 1.85 |
F-Score5
WACC7.8%
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 16.66 and the Price/Book (PB) ratio is 3.48.
Can you provide the financial health for GEHC stock?
The financial health rating of GE HEALTHCARE TECHNOLOGY (GEHC) is 3 / 10.