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GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis

NASDAQ:GEHC - Nasdaq - US36266G1076 - Common Stock - Currency: USD

86.58  +1.17 (+1.37%)

After market: 86.5 -0.08 (-0.09%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to GEHC. GEHC was compared to 189 industry peers in the Health Care Equipment & Supplies industry. GEHC scores excellent on profitability, but there are concerns on its financial health. GEHC is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

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.
GEHC had positive earnings in each of the past 5 years.
In the past 5 years GEHC always reported a positive cash flow from operatings.
GEHC Yearly Net Income VS EBIT VS OCF VS FCFGEHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

The Return On Assets of GEHC (6.02%) is better than 86.77% of its industry peers.
GEHC has a Return On Equity of 23.60%. This is amongst the best in the industry. GEHC outperforms 95.24% of its industry peers.
GEHC has a better Return On Invested Capital (8.25%) than 87.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GEHC is in line with the industry average of 7.82%.
Industry RankSector Rank
ROA 6.02%
ROE 23.6%
ROIC 8.25%
ROA(3y)5.75%
ROA(5y)16.59%
ROE(3y)21.16%
ROE(5y)34.2%
ROIC(3y)8.36%
ROIC(5y)9.41%
GEHC Yearly ROA, ROE, ROICGEHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 20 40 60 80

1.3 Margins

GEHC has a Profit Margin of 10.13%. This is amongst the best in the industry. GEHC outperforms 84.66% of its industry peers.
In the last couple of years the Profit Margin of GEHC has grown nicely.
Looking at the Operating Margin, with a value of 13.34%, GEHC belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
In the last couple of years the Operating Margin of GEHC has remained more or less at the same level.
GEHC's Gross Margin of 41.70% is on the low side compared to the rest of the industry. GEHC is outperformed by 68.25% of its industry peers.
GEHC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.34%
PM (TTM) 10.13%
GM 41.7%
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%
GEHC Yearly Profit, Operating, Gross MarginsGEHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 20 40 60 80

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GEHC is destroying value.
Compared to 1 year ago, GEHC has more shares outstanding
The debt/assets ratio for GEHC has been reduced compared to a year ago.
GEHC Yearly Shares OutstandingGEHC Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 100M 200M 300M 400M
GEHC Yearly Total Debt VS Total AssetsGEHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

GEHC has an Altman-Z score of 1.97. 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.
With a decent Altman-Z score value of 1.97, GEHC is doing good in the industry, outperforming 60.32% of the companies in the same industry.
GEHC has a debt to FCF ratio of 5.80. This is a neutral value as GEHC would need 5.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.80, GEHC is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
GEHC has a Debt/Equity ratio of 0.89. This is a neutral value indicating GEHC is somewhat dependend on debt financing.
GEHC has a worse Debt to Equity ratio (0.89) than 74.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 5.8
Altman-Z 1.97
ROIC/WACC0.98
WACC8.45%
GEHC Yearly LT Debt VS Equity VS FCFGEHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

GEHC has a Current Ratio of 1.04. This is a normal value and indicates that GEHC is financially healthy and should not expect problems in meeting its short term obligations.
GEHC's Current ratio of 1.04 is on the low side compared to the rest of the industry. GEHC is outperformed by 88.36% of its industry peers.
GEHC has a Quick Ratio of 1.04. This is a bad value and indicates that GEHC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.83, GEHC is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.83
GEHC Yearly Current Assets VS Current LiabilitesGEHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 2B 4B 6B 8B

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5

3. Growth

3.1 Past

GEHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.96%, which is quite good.
The Earnings Per Share has been growing slightly by 5.32% on average over the past years.
The Revenue has been growing slightly by 0.61% 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)13.96%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%22.88%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%2.17%

3.2 Future

Based on estimates for the next years, GEHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.76% on average per year.
The Revenue is expected to grow by 4.45% on average over the next years.
EPS Next Y6.49%
EPS Next 2Y8.69%
EPS Next 3Y9.62%
EPS Next 5Y8.76%
Revenue Next Year1.53%
Revenue Next 2Y3.07%
Revenue Next 3Y3.57%
Revenue Next 5Y4.45%

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 accelerating: in the next years the growth will be better than in the last years.
GEHC Yearly Revenue VS EstimatesGEHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B
GEHC Yearly EPS VS EstimatesGEHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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5

4. Valuation

4.1 Price/Earnings Ratio

GEHC is valuated rather expensively with a Price/Earnings ratio of 19.28.
86.24% 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 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.11, which indicates a rather expensive current valuation of GEHC.
83.60% of the companies in the same industry are more expensive than GEHC, based on the Price/Forward Earnings ratio.
GEHC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.28
Fwd PE 18.11
GEHC Price Earnings VS Forward Price EarningsGEHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GEHC indicates a rather cheap valuation: GEHC is cheaper than 84.66% of the companies listed in the same industry.
85.19% of the companies in the same industry are more expensive than GEHC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 25.54
EV/EBITDA 14.26
GEHC Per share dataGEHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30 40

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)2.97
PEG (5Y)3.62
EPS Next 2Y8.69%
EPS Next 3Y9.62%

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3

5. Dividend

5.1 Amount

GEHC has a yearly dividend return of 0.16%, which is pretty low.
Compared to an average industry Dividend Yield of 1.70, GEHC pays a better dividend. On top of this GEHC pays more dividend than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, GEHC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.16%

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
GEHC Yearly Dividends per shareGEHC Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.02 0.04 0.06 0.08 0.1

5.3 Sustainability

GEHC pays out 2.76% of its income as dividend. This is a sustainable payout ratio.
DP2.76%
EPS Next 2Y8.69%
EPS Next 3Y9.62%
GEHC Yearly Income VS Free CF VS DividendGEHC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
GEHC Dividend Payout.GEHC Dividend Payout, showing the Payout Ratio.GEHC Dividend Payout.PayoutRetained Earnings

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GE HEALTHCARE TECHNOLOGY

NASDAQ:GEHC (3/7/2025, 8:00:01 PM)

After market: 86.5 -0.08 (-0.09%)

86.58

+1.17 (+1.37%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-13 2025-02-13/bmo
Earnings (Next)04-30 2025-04-30/bmo
Inst Owners88.13%
Inst Owner Change2.43%
Ins Owners0.18%
Ins Owner Change0.27%
Market Cap39.59B
Analysts78.46
Price Target102.19 (18.03%)
Short Float %2.03%
Short Ratio3.12
Dividend
Industry RankSector Rank
Dividend Yield 0.16%
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-14 2025-01-14 (0.035)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.33%
Min EPS beat(2)6.17%
Max EPS beat(2)12.49%
EPS beat(4)3
Avg EPS beat(4)4.04%
Min EPS beat(4)-2.68%
Max EPS beat(4)12.49%
EPS beat(8)7
Avg EPS beat(8)5.16%
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)-2.12%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)-2.07%
Revenue beat(4)0
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)-2.07%
Revenue beat(8)1
Avg Revenue beat(8)-1.9%
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)3.34%
PT rev (3m)2.93%
EPS NQ rev (1m)-7.49%
EPS NQ rev (3m)-8.03%
EPS NY rev (1m)0.53%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)-2.44%
Revenue NY rev (1m)-1.87%
Revenue NY rev (3m)-2.45%
Valuation
Industry RankSector Rank
PE 19.28
Fwd PE 18.11
P/S 2.01
P/FCF 25.54
P/OCF 20.29
P/B 4.69
P/tB N/A
EV/EBITDA 14.26
EPS(TTM)4.49
EY5.19%
EPS(NY)4.78
Fwd EY5.52%
FCF(TTM)3.39
FCFY3.91%
OCF(TTM)4.27
OCFY4.93%
SpS43.02
BVpS18.47
TBVpS-12.61
PEG (NY)2.97
PEG (5Y)3.62
Profitability
Industry RankSector Rank
ROA 6.02%
ROE 23.6%
ROCE 11.15%
ROIC 8.25%
ROICexc 9.4%
ROICexgc 30.11%
OM 13.34%
PM (TTM) 10.13%
GM 41.7%
FCFM 7.88%
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-Score5
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 5.8
Debt/EBITDA 2.34
Cap/Depr 69.14%
Cap/Sales 2.04%
Interest Coverage 4.77
Cash Conversion 60.87%
Profit Quality 77.77%
Current Ratio 1.04
Quick Ratio 0.83
Altman-Z 1.97
F-Score5
WACC8.45%
ROIC/WACC0.98
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)13.96%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%22.88%
EPS Next Y6.49%
EPS Next 2Y8.69%
EPS Next 3Y9.62%
EPS Next 5Y8.76%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%2.17%
Revenue Next Year1.53%
Revenue Next 2Y3.07%
Revenue Next 3Y3.57%
Revenue Next 5Y4.45%
EBIT growth 1Y7.8%
EBIT growth 3Y-2.07%
EBIT growth 5Y4.33%
EBIT Next Year28.82%
EBIT Next 3Y12.42%
EBIT Next 5Y10.8%
FCF growth 1Y-9.57%
FCF growth 3Y4.48%
FCF growth 5Y0.56%
OCF growth 1Y-7.14%
OCF growth 3Y6.68%
OCF growth 5Y1.2%