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GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis

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

60.48  -1.89 (-3.03%)

After market: 60.5 +0.02 (+0.03%)

Fundamental Rating

5

Taking everything into account, GEHC scores 5 out of 10 in our fundamental rating. GEHC was compared to 191 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year GEHC was profitable.
GEHC had a positive operating cash flow in the past year.
In the past 5 years GEHC has always been profitable.
GEHC had a positive operating cash flow in each of the past 5 years.
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

GEHC has a better Return On Assets (6.02%) than 86.91% of its industry peers.
The Return On Equity of GEHC (23.60%) is better than 95.29% of its industry peers.
GEHC has a better Return On Invested Capital (8.25%) than 87.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GEHC is in line with the industry average of 7.68%.
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

With an excellent Profit Margin value of 10.13%, GEHC belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
GEHC's Profit Margin has improved in the last couple of years.
GEHC's Operating Margin of 13.34% is amongst the best of the industry. GEHC outperforms 81.68% of its industry peers.
In the last couple of years the Operating Margin of GEHC has remained more or less at the same level.
GEHC has a worse Gross Margin (41.70%) than 67.02% 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

GEHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GEHC has more shares outstanding than it did 1 year ago.
GEHC has a better debt/assets ratio than last year.
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

Based on the Altman-Z score of 1.68, we must say that GEHC is in the distress zone and has some risk of bankruptcy.
GEHC's Altman-Z score of 1.68 is fine compared to the rest of the industry. GEHC outperforms 60.73% of its industry peers.
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.
The Debt to FCF ratio of GEHC (5.80) is better than 79.06% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that GEHC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, GEHC is doing worse than 72.25% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 5.8
Altman-Z 1.68
ROIC/WACC0.94
WACC8.79%
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 has a Current ratio of 1.04. This is amonst the worse of the industry: GEHC underperforms 85.86% 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.
The Quick ratio of GEHC (0.83) is worse than 83.77% of its industry peers.
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

The Earnings Per Share has grown by an nice 13.96% over the past year.
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 0.61%.
The Revenue has been growing slightly by 3.41% on average over the past years.
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

The Earnings Per Share is expected to grow by 8.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y6.62%
EPS Next 2Y8.98%
EPS Next 3Y9.91%
EPS Next 5Y8.83%
Revenue Next Year1.67%
Revenue Next 2Y3.19%
Revenue Next 3Y3.71%
Revenue Next 5Y4.2%

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 2029 5B 10B 15B 20B
GEHC Yearly EPS VS EstimatesGEHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.47, which indicates a correct valuation of GEHC.
GEHC's Price/Earnings ratio is rather cheap when compared to the industry. GEHC is cheaper than 88.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.63, GEHC is valued rather cheaply.
GEHC is valuated correctly with a Price/Forward Earnings ratio of 12.63.
87.43% of the companies in the same industry are more expensive than GEHC, based on the Price/Forward Earnings ratio.
GEHC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.47
Fwd PE 12.63
GEHC Price Earnings VS Forward Price EarningsGEHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

GEHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GEHC is cheaper than 87.43% of the companies in the same industry.
89.01% 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 17.86
EV/EBITDA 10.55
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.
GEHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)2.53
EPS Next 2Y8.98%
EPS Next 3Y9.91%

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3

5. Dividend

5.1 Amount

GEHC has a yearly dividend return of 0.22%, which is pretty low.
The stock price of GEHC dropped by -31.79% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.94, GEHC pays a better dividend. On top of this GEHC pays more dividend than 90.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, GEHC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.22%

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 2Y8.98%
EPS Next 3Y9.91%
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 (4/21/2025, 8:17:28 PM)

After market: 60.5 +0.02 (+0.03%)

60.48

-1.89 (-3.03%)

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 Change0.23%
Ins Owners0.18%
Ins Owner Change0.27%
Market Cap27.69B
Analysts79.23
Price Target102.57 (69.59%)
Short Float %2.21%
Short Ratio3.3
Dividend
Industry RankSector Rank
Dividend Yield 0.22%
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-25 2025-04-25 (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)0.37%
PT rev (3m)3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.95%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-2.14%
Valuation
Industry RankSector Rank
PE 13.47
Fwd PE 12.63
P/S 1.41
P/FCF 17.86
P/OCF 14.19
P/B 3.28
P/tB N/A
EV/EBITDA 10.55
EPS(TTM)4.49
EY7.42%
EPS(NY)4.79
Fwd EY7.92%
FCF(TTM)3.39
FCFY5.6%
OCF(TTM)4.26
OCFY7.05%
SpS42.96
BVpS18.45
TBVpS-12.6
PEG (NY)2.03
PEG (5Y)2.53
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 1.68
F-Score5
WACC8.79%
ROIC/WACC0.94
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 Y6.62%
EPS Next 2Y8.98%
EPS Next 3Y9.91%
EPS Next 5Y8.83%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%2.17%
Revenue Next Year1.67%
Revenue Next 2Y3.19%
Revenue Next 3Y3.71%
Revenue Next 5Y4.2%
EBIT growth 1Y7.8%
EBIT growth 3Y-2.07%
EBIT growth 5Y4.33%
EBIT Next Year25.22%
EBIT Next 3Y12.63%
EBIT Next 5Y9.53%
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%