GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
USA - NASDAQ:GEHC - US36266G1076 - Common Stock
73.22 USD
+0.88 (+1.22%)
73.22 USD
0 (0%)
Overall GEHC gets a fundamental rating of 5 out of 10. We evaluated GEHC against 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 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.
In the past year GEHC had a positive cash flow from operations.
Each year in the past 5 years GEHC has been profitable.
In the past 5 years GEHC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GEHC (6.31%) is better than 85.34% of its industry peers.
With an excellent Return On Equity value of 23.07%, GEHC belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
GEHC's Return On Invested Capital of 7.93% is amongst the best of the industry. GEHC outperforms 86.39% 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 8.89%.
| 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
The Profit Margin of GEHC (11.22%) is better than 85.34% of its industry peers.
GEHC's Profit Margin has improved in the last couple of years.
GEHC has a better Operating Margin (13.82%) than 82.20% of its industry peers.
GEHC's Operating Margin has been stable in the last couple of years.
GEHC has a Gross Margin of 41.55%. This is in the lower half of the industry: GEHC underperforms 64.40% of its industry peers.
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 | 13.82% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GEHC is still 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 1.81. This is a bad value and indicates that GEHC is not financially healthy and even has some risk of bankruptcy.
GEHC has a Altman-Z score of 1.81. This is comparable to the rest of the industry: GEHC outperforms 58.12% of its industry peers.
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.
The Debt to FCF ratio of GEHC (6.59) is better than 76.96% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that GEHC is somewhat dependend on debt financing.
GEHC's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. GEHC is outperformed by 73.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.02
WACC7.75%
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.
With a Current ratio value of 1.16, GEHC is not doing good in the industry: 83.25% of the companies in the same industry are doing better.
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 80.10% 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.
The Earnings Per Share has been growing slightly by 5.32% on average over the past years.
The Revenue has been growing slightly by 2.30% 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)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
Based on estimates for the next years, GEHC will show a small growth in Earnings Per Share. The EPS will grow by 5.96% on average per year.
GEHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y2.67%
EPS Next 2Y6%
EPS Next 3Y7.93%
EPS Next 5Y5.96%
Revenue Next Year3.86%
Revenue Next 2Y4.23%
Revenue Next 3Y4.38%
Revenue Next 5Y3.53%
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 stable.
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
Based on the Price/Earnings ratio of 15.71, the valuation of GEHC can be described as correct.
Based on the Price/Earnings ratio, GEHC is valued cheaply inside the industry as 85.86% of the companies are valued more expensively.
GEHC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.51 indicates a correct valuation of GEHC.
Based on the Price/Forward Earnings ratio, GEHC is valued cheaper than 85.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.04. GEHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 14.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEHC is valued cheaply inside the industry as 84.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GEHC is valued cheaply inside the industry as 85.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.36 | ||
| EV/EBITDA | 11.91 |
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)5.89
PEG (5Y)2.95
EPS Next 2Y6%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
GEHC has a yearly dividend return of 0.19%, which is pretty low.
GEHC's Dividend Yield is rather good when compared to the industry average which is at 1.82. GEHC pays more dividend than 90.58% of the companies in the same industry.
With a Dividend Yield of 0.19, GEHC pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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 2Y6%
EPS Next 3Y7.93%
73.22
+0.88 (+1.22%)
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 Change0.11%
Ins Owners0.28%
Ins Owner Change0.09%
Market Cap33.43B
Analysts81.48
Price Target89.33 (22%)
Short Float %1.64%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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)0.65%
PT rev (3m)0.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.39%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)11.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 14.51 | ||
| P/S | 1.67 | ||
| P/FCF | 21.36 | ||
| P/OCF | 16.76 | ||
| P/B | 3.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.91 |
EPS(TTM)4.66
EY6.36%
EPS(NY)5.04
Fwd EY6.89%
FCF(TTM)3.43
FCFY4.68%
OCF(TTM)4.37
OCFY5.97%
SpS43.73
BVpS21.27
TBVpS-10.79
PEG (NY)5.89
PEG (5Y)2.95
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 | 1.81 |
F-Score6
WACC7.75%
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 Y2.67%
EPS Next 2Y6%
EPS Next 3Y7.93%
EPS Next 5Y5.96%
Revenue 1Y (TTM)2.3%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%3.47%
Revenue Next Year3.86%
Revenue Next 2Y4.23%
Revenue Next 3Y4.38%
Revenue Next 5Y3.53%
EBIT growth 1Y12.47%
EBIT growth 3Y-2.07%
EBIT growth 5Y4.33%
EBIT Next Year18.48%
EBIT Next 3Y10.61%
EBIT Next 5Y8.5%
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%