GENERAL ELECTRIC (GCP.DE) Stock Fundamental Analysis
FRA:GCP - Deutsche Boerse Ag - US3696043013 - Common Stock - Currency: EUR
Overall GCP gets a fundamental rating of 5 out of 10. We evaluated GCP against 47 industry peers in the Aerospace & Defense industry. GCP scores excellent on profitability, but there are some minor concerns on its financial health. GCP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GCP had positive earnings in the past year.
In the past year GCP had a positive cash flow from operations.
GCP had positive earnings in 4 of the past 5 years.
GCP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.64%, GCP belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
Looking at the Return On Equity, with a value of 36.34%, GCP belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
GCP has a Return On Invested Capital of 5.12%. This is comparable to the rest of the industry: GCP outperforms 44.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GCP is significantly below the industry average of 8.60%.
The 3 year average ROIC (2.53%) for GCP is below the current ROIC(5.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 36.34% | ||
| ROIC | 5.12% |
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 better Profit Margin (17.63%) than 95.74% of its industry peers.
The Operating Margin of GCP (16.35%) is better than 93.62% of its industry peers.
In the last couple of years the Operating Margin of GCP has grown nicely.
With a Gross Margin value of 35.83%, GCP perfoms like the industry average, outperforming 59.57% of the companies in the same industry.
GCP'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
GCP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GCP has been reduced compared to 1 year ago.
GCP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GCP is higher compared to a year ago.
2.2 Solvency
GCP has an Altman-Z score of 3.08. This indicates that GCP is financially healthy and has little risk of bankruptcy at the moment.
GCP has a better Altman-Z score (3.08) than 70.21% of its industry peers.
GCP has a debt to FCF ratio of 4.44. This is a neutral value as GCP would need 4.44 years to pay back of all of its debts.
GCP has a Debt to FCF ratio (4.44) which is comparable to the rest of the industry.
GCP has a Debt/Equity ratio of 0.91. This is a neutral value indicating GCP is somewhat dependend on debt financing.
GCP has a worse Debt to Equity ratio (0.91) than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.5
WACC10.26%
2.3 Liquidity
GCP has a Current Ratio of 1.08. This is a normal value and indicates that GCP is financially healthy and should not expect problems in meeting its short term obligations.
GCP has a worse Current ratio (1.08) than 65.96% of its industry peers.
A Quick Ratio of 0.77 indicates that GCP may have some problems paying its short term obligations.
GCP's Quick ratio of 0.77 is in line compared to the rest of the industry. GCP outperforms 48.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
GCP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.36%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.65% on average over the past years.
GCP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.05%.
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)60.36%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%62.61%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%34.04%
3.2 Future
GCP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.46% yearly.
Based on estimates for the next years, GCP will show a quite strong growth in Revenue. The Revenue will grow by 9.70% on average per year.
EPS Next Y27.72%
EPS Next 2Y22.27%
EPS Next 3Y20.29%
EPS Next 5Y16.46%
Revenue Next Year14.17%
Revenue Next 2Y12.4%
Revenue Next 3Y11.31%
Revenue Next 5Y9.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 59.74, which means the current valuation is very expensive for GCP.
The rest of the industry has a similar Price/Earnings ratio as GCP.
The average S&P500 Price/Earnings ratio is at 27.54. GCP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 39.92 indicates a quite expensive valuation of GCP.
Based on the Price/Forward Earnings ratio, GCP is valued a bit more expensive than the industry average as 63.83% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 36.44. GCP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.74 | ||
| Fwd PE | 39.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GCP indicates a slightly more expensive valuation: GCP is more expensive than 74.47% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GCP is valued a bit more expensive than the industry average as 61.70% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.81 | ||
| EV/EBITDA | 39.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GCP does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of GCP 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)2.15
PEG (5Y)N/A
EPS Next 2Y22.27%
EPS Next 3Y20.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, GCP is not a good candidate for dividend investing.
GCP's Dividend Yield is comparable with the industry average which is at 1.18.
Compared to an average S&P500 Dividend Yield of 2.35, GCP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of GCP is nicely growing with an annual growth rate of 9.39%!
Dividend Growth(5Y)9.39%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
GCP pays out 17.50% of its income as dividend. This is a sustainable payout ratio.
GCP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.5%
EPS Next 2Y22.27%
EPS Next 3Y20.29%
FRA:GCP (7/18/2025, 7:00:00 PM)
230
+1 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners79.98%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap245.27B
Analysts82.86
Price Target227.95 (-0.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.8
Dividend Growth(5Y)9.39%
DP17.5%
Div Incr Years1
Div Non Decr Years4
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)11.19%
PT rev (3m)5.86%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)6.24%
EPS NY rev (1m)0.1%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.74 | ||
| Fwd PE | 39.92 | ||
| P/S | 7.2 | ||
| P/FCF | 64.81 | ||
| P/OCF | 54.66 | ||
| P/B | 14.84 | ||
| P/tB | 45.51 | ||
| EV/EBITDA | 39.05 |
EPS(TTM)3.85
EY1.67%
EPS(NY)5.76
Fwd EY2.51%
FCF(TTM)3.55
FCFY1.54%
OCF(TTM)4.21
OCFY1.83%
SpS31.94
BVpS15.5
TBVpS5.05
PEG (NY)2.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 36.34% | ||
| ROCE | 7.28% | ||
| ROIC | 5.12% | ||
| ROICexc | 6.03% | ||
| ROICexgc | 7.27% | ||
| 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)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-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 | 3.08 |
F-Score6
WACC10.26%
ROIC/WACC0.5
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)60.36%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%62.61%
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%34.04%
Revenue Next Year14.17%
Revenue Next 2Y12.4%
Revenue Next 3Y11.31%
Revenue Next 5Y9.7%
EBIT growth 1Y61.62%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year36.34%
EBIT Next 3Y19.37%
EBIT Next 5Y13.76%
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%