GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
NASDAQ:GEHC - Nasdaq - US36266G1076 - Common Stock - Currency: USD
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. GEHC has an excellent profitability rating, but there are concerns on its financial health. GEHC is not valued too expensively and it also shows a decent 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.
GEHC had positive earnings in each of the past 5 years.
GEHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.95%, GEHC belongs to the top of the industry, outperforming 84.74% of the companies in the same industry.
GEHC's Return On Equity of 20.14% is amongst the best of the industry. GEHC outperforms 94.74% of its industry peers.
GEHC has a Return On Invested Capital of 7.29%. This is amongst the best in the industry. GEHC outperforms 85.79% of its industry peers.
GEHC had an Average Return On Invested Capital over the past 3 years of 9.03%. This is in line with the industry average of 8.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 20.14% | ||
| ROIC | 7.29% |
ROA(3y)6.59%
ROA(5y)N/A
ROE(3y)17.8%
ROE(5y)N/A
ROIC(3y)9.03%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of GEHC (8.56%) is better than 81.58% of its industry peers.
In the last couple of years the Profit Margin of GEHC has declined.
Looking at the Operating Margin, with a value of 12.85%, GEHC belongs to the top of the industry, outperforming 82.11% of the companies in the same industry.
GEHC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 41.33%, GEHC is not doing good in the industry: 66.84% of the companies in the same industry are doing better.
GEHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.85% | ||
| PM (TTM) | 8.56% | ||
| GM | 41.33% |
OM growth 3Y-7.72%
OM growth 5YN/A
PM growth 3Y-55.55%
PM growth 5YN/A
GM growth 3Y0.91%
GM growth 5YN/A
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.
The number of shares outstanding for GEHC has been increased compared to 1 year ago.
GEHC has a better debt/assets ratio than last year.
2.2 Solvency
GEHC has an Altman-Z score of 1.94. 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 better Altman-Z score (1.94) than 60.53% of its industry peers.
The Debt to FCF ratio of GEHC is 6.08, which is on the high side as it means it would take GEHC, 6.08 years of fcf income to pay off all of its debts.
GEHC has a Debt to FCF ratio of 6.08. This is in the better half of the industry: GEHC outperforms 75.79% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that GEHC has dependencies on debt financing.
GEHC's Debt to Equity ratio of 1.12 is on the low side compared to the rest of the industry. GEHC is outperformed by 77.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.08 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.86
WACC8.52%
2.3 Liquidity
GEHC has a Current Ratio of 1.23. This is a normal value and indicates that GEHC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.23, GEHC is doing worse than 83.16% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that GEHC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, GEHC is doing worse than 77.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
GEHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.69%.
GEHC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -53.65% yearly.
The Revenue has been growing slightly by 1.42% in the past year.
GEHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.44% yearly.
EPS 1Y (TTM)3.69%
EPS 3Y-53.65%
EPS 5YN/A
EPS Q2Q%15.15%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y4.44%
Revenue growth 5YN/A
Sales Q2Q%0.85%
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 9.78% on average per year.
GEHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y11.22%
EPS Next 2Y9.87%
EPS Next 3Y10.52%
EPS Next 5Y9.78%
Revenue Next Year1.37%
Revenue Next 2Y2.62%
Revenue Next 3Y3.22%
Revenue Next 5Y3.83%
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
Based on the Price/Earnings ratio of 20.60, the valuation of GEHC can be described as rather expensive.
86.32% of the companies in the same industry are more expensive than GEHC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GEHC to the average of the S&P500 Index (28.47), we can say GEHC is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.28 indicates a rather expensive valuation of GEHC.
GEHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. GEHC is cheaper than 84.74% of the companies in the same industry.
GEHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEHC is valued cheaply inside the industry as 85.26% of the companies are valued more expensively.
GEHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GEHC is cheaper than 87.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.43 | ||
| EV/EBITDA | 15.09 |
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)1.84
PEG (5Y)N/A
EPS Next 2Y9.87%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, GEHC is not a good candidate for dividend investing.
GEHC's Dividend Yield is rather good when compared to the industry average which is at 1.58. GEHC pays more dividend than 90.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, GEHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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
5.3 Sustainability
3.22% of the earnings are spent on dividend by GEHC. This is a low number and sustainable payout ratio.
DP3.22%
EPS Next 2Y9.87%
EPS Next 3Y10.52%
GE HEALTHCARE TECHNOLOGY
NASDAQ:GEHC (2/4/2025, 8:00:00 PM)
After market: 86.71 -0.22 (-0.25%)86.93
-0.58 (-0.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners78.8%
Inst Owner Change0.66%
Ins Owners0.17%
Ins Owner Change-0.95%
Market Cap39.72B
Analysts77.6
Price Target98.89 (13.76%)
Short Float %2.88%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
Yearly Dividend0.09
Dividend Growth(5Y)N/A
DP3.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.17%
Min EPS beat(2)0.18%
Max EPS beat(2)6.17%
EPS beat(4)3
Avg EPS beat(4)2.94%
Min EPS beat(4)-2.68%
Max EPS beat(4)8.08%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-2.35%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)-2.07%
Revenue beat(4)1
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)0.25%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-0.08%
PT rev (3m)0.7%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)0.08%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 18.28 | ||
| P/S | 2.03 | ||
| P/FCF | 23.43 | ||
| P/OCF | 19.02 | ||
| P/B | 4.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.09 |
EPS(TTM)4.22
EY4.85%
EPS(NY)4.76
Fwd EY5.47%
FCF(TTM)3.71
FCFY4.27%
OCF(TTM)4.57
OCFY5.26%
SpS42.81
BVpS18.2
TBVpS-13.03
PEG (NY)1.84
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 20.14% | ||
| ROCE | 9.98% | ||
| ROIC | 7.29% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 24.99% | ||
| OM | 12.85% | ||
| PM (TTM) | 8.56% | ||
| GM | 41.33% | ||
| FCFM | 8.67% |
ROA(3y)6.59%
ROA(5y)N/A
ROE(3y)17.8%
ROE(5y)N/A
ROIC(3y)9.03%
ROIC(5y)N/A
ROICexc(3y)9.66%
ROICexc(5y)N/A
ROICexgc(3y)38.17%
ROICexgc(5y)N/A
ROCE(3y)12.36%
ROCE(5y)N/A
ROICexcg growth 3Y-24.76%
ROICexcg growth 5YN/A
ROICexc growth 3Y-10.67%
ROICexc growth 5YN/A
OM growth 3Y-7.72%
OM growth 5YN/A
PM growth 3Y-55.55%
PM growth 5YN/A
GM growth 3Y0.91%
GM growth 5YN/A
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.08 | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 67.29% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.42% | ||
| Profit Quality | 101.19% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.94 |
F-Score6
WACC8.52%
ROIC/WACC0.86
Cap/Depr(3y)50.7%
Cap/Depr(5y)48.69%
Cap/Sales(3y)1.69%
Cap/Sales(5y)1.72%
Profit Quality(3y)92.78%
Profit Quality(5y)78.85%
High Growth Momentum
Growth
EPS 1Y (TTM)3.69%
EPS 3Y-53.65%
EPS 5YN/A
EPS Q2Q%15.15%
EPS Next Y11.22%
EPS Next 2Y9.87%
EPS Next 3Y10.52%
EPS Next 5Y9.78%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y4.44%
Revenue growth 5YN/A
Sales Q2Q%0.85%
Revenue Next Year1.37%
Revenue Next 2Y2.62%
Revenue Next 3Y3.22%
Revenue Next 5Y3.83%
EBIT growth 1Y-0.4%
EBIT growth 3Y-3.62%
EBIT growth 5YN/A
EBIT Next Year26.6%
EBIT Next 3Y12.73%
EBIT Next 5Y9.51%
FCF growth 1Y124.8%
FCF growth 3Y-10.1%
FCF growth 5YN/A
OCF growth 1Y96.98%
OCF growth 3Y-7.07%
OCF growth 5YN/A