GENERAL ELECTRIC (1GE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GE - US3696041033 - Common Stock
250.5 EUR
-4.5 (-1.76%)
We assign a fundamental rating of 5 out of 10 to 1GE. 1GE was compared to 53 industry peers in the Aerospace & Defense industry. 1GE has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, 1GE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year 1GE was profitable.
- 1GE had a positive operating cash flow in the past year.
- In multiple years 1GE reported negative net income over the last 5 years.
- Of the past 5 years 1GE 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1GE (6.29%) is better than 76.36% of its industry peers.
- Looking at the Return On Equity, with a value of 42.86%, 1GE belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
- 1GE has a Return On Invested Capital (7.55%) which is comparable to the rest of the industry.
- 1GE had an Average Return On Invested Capital over the past 3 years of 3.20%. This is significantly below the industry average of 9.24%.
- The 3 year average ROIC (3.20%) for 1GE is below the current ROIC(7.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 42.86% | ||
| ROIC | 7.55% |
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
- With an excellent Profit Margin value of 18.34%, 1GE belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
- 1GE has a better Operating Margin (17.60%) than 90.91% of its industry peers.
- In the last couple of years the Operating Margin of 1GE has grown nicely.
- With a decent Gross Margin value of 35.88%, 1GE is doing good in the industry, outperforming 61.82% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1GE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.6% | ||
| PM (TTM) | 18.34% | ||
| GM | 35.88% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1GE is destroying value.
- There is no outstanding debt for 1GE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 3.20 indicates that 1GE is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.20, 1GE is doing good in the industry, outperforming 65.45% of the companies in the same industry.
- 1GE has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as 1GE would need 3.23 years to pay back of all of its debts.
- 1GE has a better Debt to FCF ratio (3.23) than 74.55% of its industry peers.
- 1GE has a Debt/Equity ratio of 1.00. This is a neutral value indicating 1GE is somewhat dependend on debt financing.
- 1GE's Debt to Equity ratio of 1.00 is on the low side compared to the rest of the industry. 1GE is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.77
WACC9.8%
2.3 Liquidity
- A Current Ratio of 1.08 indicates that 1GE should not have too much problems paying its short term obligations.
- 1GE has a Current ratio of 1.08. This is in the lower half of the industry: 1GE underperforms 70.91% of its industry peers.
- A Quick Ratio of 0.76 indicates that 1GE may have some problems paying its short term obligations.
- 1GE has a Quick ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 42.09% over the past year.
- The Earnings Per Share has been growing by 81.94% on average over the past years. This is a very strong growth
EPS 1Y (TTM)42.09%
EPS 3Y28.46%
EPS 5Y81.94%
EPS Q2Q%18.94%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%20.1%
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 12.84% on average per year.
- Based on estimates for the next years, 1GE will show a quite strong growth in Revenue. The Revenue will grow by 8.41% on average per year.
EPS Next Y14.77%
EPS Next 2Y15.85%
EPS Next 3Y14.33%
EPS Next 5Y12.84%
Revenue Next Year13.4%
Revenue Next 2Y11.72%
Revenue Next 3Y10.61%
Revenue Next 5Y8.41%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 46.13 indicates a quite expensive valuation of 1GE.
- 1GE's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1GE is valued quite expensively.
- 1GE is valuated quite expensively with a Price/Forward Earnings ratio of 40.17.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1GE.
- 1GE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.13 | ||
| Fwd PE | 40.17 |
4.2 Price Multiples
- 63.64% of the companies in the same industry are cheaper than 1GE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1GE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.14 | ||
| EV/EBITDA | 35.39 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1GE does not grow enough to justify the current Price/Earnings ratio.
- 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 14.33% in the coming years.
PEG (NY)3.12
PEG (5Y)0.56
EPS Next 2Y15.85%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.49%, 1GE is not a good candidate for dividend investing.
- 1GE's Dividend Yield is comparable with the industry average which is at 0.74.
- With a Dividend Yield of 0.49, 1GE pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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 Years0
Div Non Decr Years0
5.3 Sustainability
- 1GE pays out 17.08% of its income as dividend. This is a sustainable payout ratio.
- 1GE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.08%
EPS Next 2Y15.85%
EPS Next 3Y14.33%
GENERAL ELECTRIC / 1GE.MI FAQ
What is the ChartMill fundamental rating of GENERAL ELECTRIC (1GE.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1GE.MI.
What is the valuation status of GENERAL ELECTRIC (1GE.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to GENERAL ELECTRIC (1GE.MI). This can be considered as Overvalued.
What is the profitability of 1GE stock?
GENERAL ELECTRIC (1GE.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for 1GE stock?
The Price/Earnings (PE) ratio for GENERAL ELECTRIC (1GE.MI) is 46.13 and the Price/Book (PB) ratio is 16.49.
Is the dividend of GENERAL ELECTRIC sustainable?
The dividend rating of GENERAL ELECTRIC (1GE.MI) is 4 / 10 and the dividend payout ratio is 17.08%.