GENERAL ELECTRIC (1GE.MI) Stock Fundamental Analysis
BIT:1GE - Euronext Milan - US3696041033 - Common Stock - Currency: EUR
Overall 1GE gets a fundamental rating of 5 out of 10. We evaluated 1GE against 43 industry peers in the Aerospace & Defense industry. While 1GE belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1GE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1GE was profitable.
In the past year 1GE had a positive cash flow from operations.
Of the past 5 years 1GE 4 years were profitable.
In the past 5 years 1GE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1GE (5.64%) is better than 81.40% of its industry peers.
The Return On Equity of 1GE (36.34%) is better than 97.67% of its industry peers.
1GE has a Return On Invested Capital (6.47%) which is in line with its industry peers.
1GE had an Average Return On Invested Capital over the past 3 years of 3.20%. This is significantly below the industry average of 9.22%.
The 3 year average ROIC (3.20%) for 1GE is below the current ROIC(6.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 36.34% | ||
| ROIC | 6.47% |
ROA(3y)3.55%
ROA(5y)1.86%
ROE(3y)22.52%
ROE(5y)13.1%
ROIC(3y)3.2%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of 1GE (17.63%) is better than 97.67% of its industry peers.
Looking at the Operating Margin, with a value of 16.35%, 1GE belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
In the last couple of years the Operating Margin of 1GE has grown nicely.
1GE's Gross Margin of 35.83% is fine compared to the rest of the industry. 1GE outperforms 62.79% of its industry peers.
1GE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.35% | ||
| PM (TTM) | 17.63% | ||
| GM | 35.83% |
OM growth 3Y396.9%
OM growth 5Y30.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.73%
GM growth 5Y6.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1GE is destroying value.
1GE has less shares outstanding than it did 1 year ago.
1GE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1GE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.85 indicates that 1GE is not a great score, but indicates only limited risk for bankruptcy at the moment.
1GE has a better Altman-Z score (2.85) than 69.77% of its industry peers.
The Debt to FCF ratio of 1GE is 4.44, which is a neutral value as it means it would take 1GE, 4.44 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.44, 1GE is in line with its industry, outperforming 55.81% of the companies in the same industry.
1GE has a Debt/Equity ratio of 0.91. This is a neutral value indicating 1GE is somewhat dependend on debt financing.
1GE's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. 1GE is outperformed by 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.64
WACC10.06%
2.3 Liquidity
1GE has a Current Ratio of 1.08. This is a normal value and indicates that 1GE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1GE (1.08) is worse than 67.44% of its industry peers.
A Quick Ratio of 0.77 indicates that 1GE may have some problems paying its short term obligations.
1GE's Quick ratio of 0.77 is in line compared to the rest of the industry. 1GE outperforms 51.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.03% over the past year.
The Earnings Per Share has been decreasing by -1.65% on average over the past years.
The Revenue has grown by 8.81% in the past year. This is quite good.
The Revenue for 1GE have been decreasing by -15.57% on average. This is quite bad
EPS 1Y (TTM)54.03%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%81.71%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%-40.68%
3.2 Future
Based on estimates for the next years, 1GE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.13% on average per year.
The Revenue is expected to grow by 9.14% on average over the next years. This is quite good.
EPS Next Y26.99%
EPS Next 2Y21.93%
EPS Next 3Y20.13%
EPS Next 5Y15.13%
Revenue Next Year14.26%
Revenue Next 2Y12.35%
Revenue Next 3Y11.42%
Revenue Next 5Y9.14%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1GE is valuated quite expensively with a Price/Earnings ratio of 44.86.
The rest of the industry has a similar Price/Earnings ratio as 1GE.
When comparing the Price/Earnings ratio of 1GE to the average of the S&P500 Index (26.25), we can say 1GE is valued expensively.
The Price/Forward Earnings ratio is 34.64, which means the current valuation is very expensive for 1GE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1GE is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1GE to the average of the S&P500 Index (22.15), we can say 1GE is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.86 | ||
| Fwd PE | 34.64 |
4.2 Price Multiples
69.77% of the companies in the same industry are cheaper than 1GE, based on the Enterprise Value to EBITDA ratio.
1GE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.93 | ||
| EV/EBITDA | 33.8 |
4.3 Compensation for Growth
1GE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1GE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1GE's earnings are expected to grow with 20.13% in the coming years.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y21.93%
EPS Next 3Y20.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, 1GE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.24, 1GE is paying slightly less dividend.
With a Dividend Yield of 0.62, 1GE pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of 1GE is nicely growing with an annual growth rate of 9.39%!
Dividend Growth(5Y)9.39%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1GE pays out 17.50% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1GE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.5%
EPS Next 2Y21.93%
EPS Next 3Y20.13%
BIT:1GE (5/22/2025, 7:00:00 PM)
205
+9.6 (+4.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners80.08%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap218.61B
Analysts84.83
Price Target202.06 (-1.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend0.83
Dividend Growth(5Y)9.39%
DP17.5%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.35%
Min EPS beat(2)13.68%
Max EPS beat(2)23.03%
EPS beat(4)3
Avg EPS beat(4)13.3%
Min EPS beat(4)-1.74%
Max EPS beat(4)23.03%
EPS beat(8)7
Avg EPS beat(8)21.19%
EPS beat(12)11
Avg EPS beat(12)35.48%
EPS beat(16)15
Avg EPS beat(16)32.75%
Revenue beat(2)1
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-2.98%
Max Revenue beat(2)0.87%
Revenue beat(4)1
Avg Revenue beat(4)-2.88%
Min Revenue beat(4)-5.66%
Max Revenue beat(4)0.87%
Revenue beat(8)4
Avg Revenue beat(8)1.15%
Revenue beat(12)4
Avg Revenue beat(12)-19.58%
Revenue beat(16)4
Avg Revenue beat(16)-22.45%
PT rev (1m)-4.87%
PT rev (3m)-8.82%
EPS NQ rev (1m)6.4%
EPS NQ rev (3m)6.38%
EPS NY rev (1m)1.99%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.86 | ||
| Fwd PE | 34.64 | ||
| P/S | 6.22 | ||
| P/FCF | 55.93 | ||
| P/OCF | 47.17 | ||
| P/B | 12.81 | ||
| P/tB | 39.28 | ||
| EV/EBITDA | 33.8 |
EPS(TTM)4.57
EY2.23%
EPS(NY)5.92
Fwd EY2.89%
FCF(TTM)3.67
FCFY1.79%
OCF(TTM)4.35
OCFY2.12%
SpS32.98
BVpS16
TBVpS5.22
PEG (NY)1.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 36.34% | ||
| ROCE | 7.28% | ||
| ROIC | 6.47% | ||
| ROICexc | 7.62% | ||
| ROICexgc | 9.19% | ||
| OM | 16.35% | ||
| PM (TTM) | 17.63% | ||
| GM | 35.83% | ||
| FCFM | 11.11% |
ROA(3y)3.55%
ROA(5y)1.86%
ROE(3y)22.52%
ROE(5y)13.1%
ROIC(3y)3.2%
ROIC(5y)N/A
ROICexc(3y)3.81%
ROICexc(5y)N/A
ROICexgc(3y)4.52%
ROICexgc(5y)N/A
ROCE(3y)3.6%
ROCE(5y)N/A
ROICexcg growth 3Y385.39%
ROICexcg growth 5Y24.01%
ROICexc growth 3Y412.86%
ROICexc growth 5Y26.63%
OM growth 3Y396.9%
OM growth 5Y30.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.73%
GM growth 5Y6.44%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.44 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 85.31% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.18% | ||
| Profit Quality | 63.03% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.85 |
F-Score6
WACC10.06%
ROIC/WACC0.64
Cap/Depr(3y)67.38%
Cap/Depr(5y)59.46%
Cap/Sales(3y)3.4%
Cap/Sales(5y)2.98%
Profit Quality(3y)3112.18%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.03%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%81.71%
EPS Next Y26.99%
EPS Next 2Y21.93%
EPS Next 3Y20.13%
EPS Next 5Y15.13%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%-40.68%
Revenue Next Year14.26%
Revenue Next 2Y12.35%
Revenue Next 3Y11.42%
Revenue Next 5Y9.14%
EBIT growth 1Y61.62%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year36.34%
EBIT Next 3Y19.37%
EBIT Next 5Y13.87%
FCF growth 1Y-8.05%
FCF growth 3Y23.11%
FCF growth 5Y-10.02%
OCF growth 1Y-15.88%
OCF growth 3Y12.23%
OCF growth 5Y-11.62%