GE HEALTHCARE TECHNOLOGY (GEHC)
US36266G1076 - Common Stock
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 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.
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.
1.2 Ratios
GEHC's Return On Assets of 4.87% is amongst the best of the industry. GEHC outperforms 82.72% of its industry peers.
With an excellent Return On Equity value of 21.19%, GEHC belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
GEHC has a better Return On Invested Capital (7.56%) than 85.86% 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 8.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 21.19% | ||
| ROIC | 7.56% |
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
Looking at the Profit Margin, with a value of 8.05%, GEHC belongs to the top of the industry, outperforming 81.15% of the companies in the same industry.
In the last couple of years the Profit Margin of GEHC has declined.
The Operating Margin of GEHC (12.39%) is better than 82.20% of its industry peers.
GEHC's Operating Margin has declined in the last couple of years.
The Gross Margin of GEHC (40.69%) is worse than 64.92% of its industry peers.
GEHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.39% | ||
| PM (TTM) | 8.05% | ||
| GM | 40.69% |
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 below the Cost of Capital (WACC), so GEHC is destroying value.
GEHC has about the same amout of shares outstanding than it did 1 year ago.
GEHC has a better debt/assets ratio than last year.
2.2 Solvency
GEHC has an Altman-Z score of 1.79. This is a bad value and indicates that GEHC is not financially healthy and even has some risk of bankruptcy.
GEHC's Altman-Z score of 1.79 is in line compared to the rest of the industry. GEHC outperforms 57.59% of its industry peers.
GEHC has a debt to FCF ratio of 5.57. This is a neutral value as GEHC would need 5.57 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 5.57, GEHC belongs to the best of the industry, outperforming 80.63% of the companies in the same industry.
A Debt/Equity ratio of 1.11 is on the high side and indicates that GEHC has dependencies on debt financing.
GEHC has a worse Debt to Equity ratio (1.11) than 78.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.82
WACC9.2%
2.3 Liquidity
A Current Ratio of 1.06 indicates that GEHC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, GEHC is doing worse than 91.62% of the companies in the same industry.
GEHC has a Quick Ratio of 1.06. This is a bad value and indicates that GEHC is not financially healthy enough and could expect problems in meeting its short term obligations.
GEHC's Quick ratio of 0.83 is on the low side compared to the rest of the industry. GEHC is outperformed by 88.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
GEHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.69%.
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 for GEHC has decreased by -15.42% in the past year. This is quite bad
The Revenue has been growing slightly by 4.44% on average over the past years.
EPS 1Y (TTM)-25.69%
EPS 3Y-53.65%
EPS 5YN/A
EPS Q2Q%5.88%
Revenue 1Y (TTM)-15.42%
Revenue growth 3Y4.44%
Revenue growth 5YN/A
Sales Q2Q%-1.21%
3.2 Future
The Earnings Per Share is expected to grow by 13.42% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.37% on average over the next years.
EPS Next Y10.59%
EPS Next 2Y11.01%
EPS Next 3Y11.49%
EPS Next 5Y13.42%
Revenue Next Year3.77%
Revenue Next 2Y4.35%
Revenue Next 3Y4.69%
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
A Price/Earnings ratio of 19.17 indicates a rather expensive valuation of GEHC.
85.34% 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 28.39, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.75, which indicates a correct valuation of GEHC.
Based on the Price/Forward Earnings ratio, GEHC is valued cheaply inside the industry as 86.91% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GEHC to the average of the S&P500 Index (19.91), we can say GEHC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
88.48% of the companies in the same industry are more expensive than GEHC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GEHC is valued cheaply inside the industry as 89.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21 | ||
| EV/EBITDA | 13.79 |
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)1.81
PEG (5Y)N/A
EPS Next 2Y11.01%
EPS Next 3Y11.49%
5. Dividend
5.1 Amount
GEHC has a yearly dividend return of 0.16%, which is pretty low.
GEHC's Dividend Yield is rather good when compared to the industry average which is at 1.73. GEHC pays more dividend than 90.05% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, GEHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
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 3.50% of its income as dividend. This is a sustainable payout ratio.
DP3.5%
EPS Next 2Y11.01%
EPS Next 3Y11.49%
GE HEALTHCARE TECHNOLOGY
NASDAQ:GEHC (6/14/2024, 7:11:25 PM)
After market: 76.38 -0.11 (-0.14%)76.49
-0.5 (-0.65%)
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 Cap34.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 15.75 | ||
| 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)1.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 21.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.39% | ||
| PM (TTM) | 8.05% | ||
| GM | 40.69% | ||
| 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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.83 | ||
| 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)-25.69%
EPS 3Y-53.65%
EPS 5Y
EPS Q2Q%
EPS Next Y10.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.42%
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