GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
USA - NASDAQ:GEHC - US36266G1076 - Common Stock
73.05 USD
-1.12 (-1.51%)
73.05 USD
0 (0%)
Overall GEHC gets a fundamental rating of 5 out of 10. We evaluated GEHC 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
GEHC had positive earnings in the past year.
GEHC had a positive operating cash flow in the past year.
Each year in the past 5 years GEHC has been profitable.
Each year in the past 5 years GEHC had a positive operating cash flow.
1.2 Ratios
GEHC has a Return On Assets of 6.14%. This is amongst the best in the industry. GEHC outperforms 84.13% of its industry peers.
GEHC has a Return On Equity of 22.19%. This is amongst the best in the industry. GEHC outperforms 94.18% 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 84.66% 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 9.12%.
| 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
GEHC has a better Profit Margin (10.95%) than 84.66% of its industry peers.
GEHC's Profit Margin has improved in the last couple of years.
The Operating Margin of GEHC (13.52%) is better than 81.48% of its industry peers.
GEHC's Operating Margin has been stable in the last couple of years.
The Gross Margin of GEHC (40.80%) is worse than 65.61% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GEHC 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 has a Altman-Z score of 1.83. This is comparable 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.
Looking at the Debt to FCF ratio, with a value of 7.38, GEHC is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that GEHC is somewhat dependend on debt financing.
GEHC has a Debt to Equity ratio of 0.83. This is in the lower half of the industry: GEHC underperforms 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.
GEHC's Quick ratio of 0.95 is on the low side compared to the rest of the industry. GEHC is outperformed by 79.37% of its industry peers.
| 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.
GEHC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.52%.
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
GEHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.54% yearly.
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
GEHC is valuated correctly with a Price/Earnings ratio of 15.92.
Compared to the rest of the industry, the Price/Earnings ratio of GEHC indicates a rather cheap valuation: GEHC is cheaper than 84.66% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GEHC to the average of the S&P500 Index (25.83), we can say GEHC is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.49 indicates a correct valuation of GEHC.
Based on the Price/Forward Earnings ratio, GEHC is valued cheaply inside the industry as 86.24% of the companies are valued more expensively.
GEHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 14.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEHC is valued cheaper than 84.66% 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 82.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.82 | ||
| EV/EBITDA | 12.14 |
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)4.73
PEG (5Y)2.99
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 1.91, GEHC pays a better dividend. On top of this GEHC pays more dividend than 90.48% of the companies listed in the same industry.
With a Dividend Yield of 0.19, GEHC pays less dividend than the S&P500 average, which is at 2.39.
| 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%
73.05
-1.12 (-1.51%)
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 Change0.22%
Ins Owners0.28%
Ins Owner Change0.09%
Market Cap33.35B
Revenue(TTM)20.25B
Net Income(TTM)2.22B
Analysts79.29
Price Target88.76 (21.51%)
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)0.01%
PT rev (3m)0.07%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)11.51%
EPS NY rev (1m)0.17%
EPS NY rev (3m)11.11%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 14.49 | ||
| P/S | 1.65 | ||
| P/FCF | 23.82 | ||
| P/OCF | 18.03 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.14 |
EPS(TTM)4.59
EY6.28%
EPS(NY)5.04
Fwd EY6.9%
FCF(TTM)3.07
FCFY4.2%
OCF(TTM)4.05
OCFY5.55%
SpS44.34
BVpS21.89
TBVpS-10.1
PEG (NY)4.73
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 15.92 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.