GENERAL ELECTRIC (GCP.DE) Stock Fundamental Analysis
FRA:GCP - Deutsche Boerse Ag - US3696043013 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to GCP. GCP was compared to 45 industry peers in the Aerospace & Defense industry. GCP has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, GCP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year GCP was profitable.
In the past year GCP had a positive cash flow from operations.
Of the past 5 years GCP 4 years were profitable.
In the past 5 years GCP always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.19%, GCP is doing good in the industry, outperforming 77.78% of the companies in the same industry.
The Return On Equity of GCP (40.54%) is better than 95.56% of its industry peers.
The Return On Invested Capital of GCP (5.52%) is worse than 60.00% of its industry peers.
GCP had an Average Return On Invested Capital over the past 3 years of 2.53%. This is significantly below the industry average of 9.16%.
The last Return On Invested Capital (5.52%) for GCP is above the 3 year average (2.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 40.54% | ||
| ROIC | 5.52% |
ROA(3y)3.55%
ROA(5y)1.86%
ROE(3y)22.52%
ROE(5y)13.1%
ROIC(3y)2.53%
ROIC(5y)N/A
1.3 Margins
GCP has a Profit Margin of 18.64%. This is amongst the best in the industry. GCP outperforms 97.78% of its industry peers.
GCP's Operating Margin of 16.74% is amongst the best of the industry. GCP outperforms 95.56% of its industry peers.
In the last couple of years the Operating Margin of GCP has grown nicely.
Looking at the Gross Margin, with a value of 35.97%, GCP is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of GCP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.74% | ||
| PM (TTM) | 18.64% | ||
| GM | 35.97% |
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), GCP is destroying value.
Compared to 1 year ago, GCP has less shares outstanding
Compared to 5 years ago, GCP has less shares outstanding
The debt/assets ratio for GCP is higher compared to a year ago.
2.2 Solvency
GCP has an Altman-Z score of 3.12. This indicates that GCP is financially healthy and has little risk of bankruptcy at the moment.
GCP has a better Altman-Z score (3.12) than 66.67% of its industry peers.
GCP has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as GCP would need 3.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.44, GCP is in the better half of the industry, outperforming 68.89% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that GCP is somewhat dependend on debt financing.
GCP's Debt to Equity ratio of 0.89 is on the low side compared to the rest of the industry. GCP is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.56
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.04 indicates that GCP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.04, GCP is doing worse than 73.33% of the companies in the same industry.
A Quick Ratio of 0.73 indicates that GCP may have some problems paying its short term obligations.
The Quick ratio of GCP (0.73) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.22% 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 13.05% in the past year. This is quite good.
GCP shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -15.57% yearly.
EPS 1Y (TTM)45.22%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%38.33%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%23.45%
3.2 Future
Based on estimates for the next years, GCP will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.46% on average per year.
The Revenue is expected to grow by 9.70% on average over the next years. This is quite good.
EPS Next Y27.72%
EPS Next 2Y22.27%
EPS Next 3Y20.29%
EPS Next 5Y16.46%
Revenue Next Year17.87%
Revenue Next 2Y14.54%
Revenue Next 3Y12.8%
Revenue Next 5Y9.7%
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 49.59 indicates a quite expensive valuation of GCP.
GCP's Price/Earnings ratio is in line with the industry average.
GCP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.73.
With a Price/Forward Earnings ratio of 41.55, GCP can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, GCP is valued a bit more expensive than 75.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.61. GCP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.59 | ||
| Fwd PE | 41.55 |
4.2 Price Multiples
GCP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GCP is more expensive than 75.56% of the companies in the same industry.
GCP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.85 | ||
| EV/EBITDA | 36.56 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GCP has a very decent profitability rating, which may justify a higher PE ratio.
GCP's earnings are expected to grow with 20.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.79
PEG (5Y)N/A
EPS Next 2Y22.27%
EPS Next 3Y20.29%
5. Dividend
5.1 Amount
GCP has a yearly dividend return of 0.53%, which is pretty low.
GCP's Dividend Yield is comparable with the industry average which is at 1.24.
Compared to an average S&P500 Dividend Yield of 2.39, GCP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
On average, the dividend of GCP grows each year by 9.39%, which is quite nice.
Dividend Growth(5Y)9.39%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
GCP pays out 16.78% of its income as dividend. This is a sustainable payout ratio.
The dividend of GCP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.78%
EPS Next 2Y22.27%
EPS Next 3Y20.29%
FRA:GCP (8/12/2025, 7:00:00 PM)
240
+2 (+0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap254.51B
Analysts82.86
Price Target251.61 (4.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend0.8
Dividend Growth(5Y)9.39%
DP16.78%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.16%
Min EPS beat(2)12.64%
Max EPS beat(2)13.68%
EPS beat(4)3
Avg EPS beat(4)11.9%
Min EPS beat(4)-1.74%
Max EPS beat(4)23.03%
EPS beat(8)7
Avg EPS beat(8)17.44%
EPS beat(12)11
Avg EPS beat(12)28.05%
EPS beat(16)15
Avg EPS beat(16)31.06%
Revenue beat(2)1
Avg Revenue beat(2)-0.11%
Min Revenue beat(2)-2.98%
Max Revenue beat(2)2.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)2.75%
Revenue beat(8)4
Avg Revenue beat(8)0.49%
Revenue beat(12)5
Avg Revenue beat(12)-17.52%
Revenue beat(16)5
Avg Revenue beat(16)-22.13%
PT rev (1m)15.41%
PT rev (3m)24.12%
EPS NQ rev (1m)3.74%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)0%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)2.34%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)3.23%
Revenue NY rev (3m)3.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.59 | ||
| Fwd PE | 41.55 | ||
| P/S | 7.11 | ||
| P/FCF | 53.85 | ||
| P/OCF | 45.08 | ||
| P/B | 15.46 | ||
| P/tB | 51.06 | ||
| EV/EBITDA | 36.56 |
EPS(TTM)4.84
EY2.02%
EPS(NY)5.78
Fwd EY2.41%
FCF(TTM)4.46
FCFY1.86%
OCF(TTM)5.32
OCFY2.22%
SpS33.76
BVpS15.53
TBVpS4.7
PEG (NY)1.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 40.54% | ||
| ROCE | 7.85% | ||
| ROIC | 5.52% | ||
| ROICexc | 6.38% | ||
| ROICexgc | 7.71% | ||
| OM | 16.74% | ||
| PM (TTM) | 18.64% | ||
| GM | 35.97% | ||
| FCFM | 13.2% |
ROA(3y)3.55%
ROA(5y)1.86%
ROE(3y)22.52%
ROE(5y)13.1%
ROIC(3y)2.53%
ROIC(5y)N/A
ROICexc(3y)3.02%
ROICexc(5y)N/A
ROICexgc(3y)3.58%
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-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 87.47% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.13% | ||
| Profit Quality | 70.81% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 3.12 |
F-Score7
WACC9.87%
ROIC/WACC0.56
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)45.22%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%38.33%
EPS Next Y27.72%
EPS Next 2Y22.27%
EPS Next 3Y20.29%
EPS Next 5Y16.46%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%23.45%
Revenue Next Year17.87%
Revenue Next 2Y14.54%
Revenue Next 3Y12.8%
Revenue Next 5Y9.7%
EBIT growth 1Y54.62%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year39.35%
EBIT Next 3Y20.78%
EBIT Next 5Y13.76%
FCF growth 1Y10.26%
FCF growth 3Y23.11%
FCF growth 5Y-10.02%
OCF growth 1Y6.72%
OCF growth 3Y12.23%
OCF growth 5Y-11.62%