GE HEALTHCARE TECHNOLOGY (GEHC)
US36266G1076 - Common Stock
We assign a fundamental rating of 5 out of 10 to GEHC. GEHC was compared to 188 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.
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
Looking at the Return On Assets, with a value of 4.95%, GEHC belongs to the top of the industry, outperforming 85.56% of the companies in the same industry.
GEHC's Return On Equity of 20.14% is amongst the best of the industry. GEHC outperforms 94.65% of its industry peers.
GEHC's Return On Invested Capital of 7.29% is amongst the best of the industry. GEHC outperforms 85.03% 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 8.30%.
| 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
GEHC has a Profit Margin of 8.56%. This is amongst the best in the industry. GEHC outperforms 81.82% of its industry peers.
In the last couple of years the Profit Margin of GEHC has declined.
The Operating Margin of GEHC (12.85%) is better than 82.35% of its industry peers.
In the last couple of years the Operating Margin of GEHC has declined.
GEHC has a worse Gross Margin (41.33%) than 66.31% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GEHC is still creating some value.
GEHC has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for GEHC has been reduced compared to a year ago.
2.2 Solvency
GEHC has an Altman-Z score of 1.88. 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 Altman-Z score of 1.88. This is comparable to the rest of the industry: GEHC outperforms 58.82% of its industry peers.
GEHC has a debt to FCF ratio of 6.08. This is a slightly negative value and a sign of low solvency as GEHC would need 6.08 years to pay back of 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 75.94% of its industry peers.
GEHC has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
GEHC has a Debt to Equity ratio of 1.12. This is in the lower half of the industry: GEHC underperforms 79.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.08 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.84
WACC8.71%
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.
The Current ratio of GEHC (1.23) is worse than 86.63% of its industry peers.
A Quick Ratio of 0.98 indicates that GEHC may have some problems paying its short term obligations.
The Quick ratio of GEHC (0.98) is worse than 81.28% of its industry peers.
| 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.
GEHC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.42%.
Measured over the past years, GEHC shows a small growth in Revenue. The Revenue has been growing by 4.44% on average per year.
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 13.42% on average per year.
The Revenue is expected to grow by 6.37% on average over the next years.
EPS Next Y11.3%
EPS Next 2Y9.96%
EPS Next 3Y10.43%
EPS Next 5Y13.42%
Revenue Next Year1.42%
Revenue Next 2Y2.77%
Revenue Next 3Y3.33%
Revenue Next 5Y6.37%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.37, GEHC is valued on the expensive side.
Based on the Price/Earnings ratio, GEHC is valued cheaper than 86.10% of the companies in the same industry.
GEHC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.53, which is the current average of the S&P500 Index.
GEHC is valuated rather expensively with a Price/Forward Earnings ratio of 17.16.
GEHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. GEHC is cheaper than 87.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, GEHC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.37 | ||
| Fwd PE | 17.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEHC is valued cheaply inside the industry as 87.17% 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 88.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.04 | ||
| EV/EBITDA | 14.24 |
4.3 Compensation for Growth
GEHC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GEHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.71
PEG (5Y)N/A
EPS Next 2Y9.96%
EPS Next 3Y10.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.14%, GEHC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.67, GEHC pays a better dividend. On top of this GEHC pays more dividend than 90.37% of the companies listed in the same industry.
With a Dividend Yield of 0.14, GEHC pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
5.2 History
GEHC does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GEHC pays out 3.22% of its income as dividend. This is a sustainable payout ratio.
DP3.22%
EPS Next 2Y9.96%
EPS Next 3Y10.43%
GE HEALTHCARE TECHNOLOGY
NASDAQ:GEHC (11/15/2024, 8:13:52 PM)
After market: 81.98 +0.22 (+0.27%)81.76
-1.16 (-1.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Dividend Growth(5Y)
DP
Div Incr Years
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Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.37 | ||
| Fwd PE | 17.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 20.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.85% | ||
| PM (TTM) | 8.56% | ||
| GM | 41.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.69%
EPS 3Y-53.65%
EPS 5Y
EPS Q2Q%
EPS Next Y11.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.42%
Revenue growth 3Y4.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y