GENERAL ELECTRIC (GCP.DE) Stock Fundamental Analysis
FRA:GCP - Deutsche Boerse Ag - US3696043013 - Common Stock - Currency: EUR
Taking everything into account, GCP scores 5 out of 10 in our fundamental rating. GCP was compared to 43 industry peers in the Aerospace & Defense industry. While GCP has a great profitability rating, there are quite some concerns on its financial health. GCP 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 GCP was profitable.
In the past year GCP had a positive cash flow from operations.
GCP had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GCP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GCP (5.64%) is better than 83.72% of its industry peers.
GCP's Return On Equity of 36.34% is amongst the best of the industry. GCP outperforms 97.67% of its industry peers.
GCP's Return On Invested Capital of 5.12% is in line compared to the rest of the industry. GCP outperforms 44.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GCP is significantly below the industry average of 8.85%.
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 Profit Margin of 17.63%. This is amongst the best in the industry. GCP outperforms 97.67% of its industry peers.
GCP has a Operating Margin of 16.35%. This is amongst the best in the industry. GCP outperforms 93.02% of its industry peers.
In the last couple of years the Operating Margin of GCP has grown nicely.
GCP has a Gross Margin (35.83%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GCP has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GCP is destroying value.
The number of shares outstanding for GCP has been reduced compared to 1 year ago.
The number of shares outstanding for GCP has been reduced compared to 5 years ago.
The debt/assets ratio for GCP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.92 indicates that GCP is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.92, GCP is doing good in the industry, outperforming 72.09% of the companies in the same industry.
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.
The Debt to FCF ratio of GCP (4.44) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.91 indicates that GCP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.91, GCP is not doing good in the industry: 67.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.51
WACC10.08%
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.
Looking at the Current ratio, with a value of 1.08, GCP is doing worse than 69.77% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that GCP may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, GCP perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
| 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.
Measured over the past years, GCP shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.65% on average per year.
Looking at the last year, GCP shows a quite strong growth in Revenue. The Revenue has grown by 8.81% in the last year.
The Revenue for GCP 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
The Earnings Per Share is expected to grow by 15.90% on average over the next years. This is quite good.
Based on estimates for the next years, GCP will show a quite strong growth in Revenue. The Revenue will grow by 9.30% on average per year.
EPS Next Y26.99%
EPS Next 2Y21.93%
EPS Next 3Y20.13%
EPS Next 5Y15.9%
Revenue Next Year14.12%
Revenue Next 2Y12.21%
Revenue Next 3Y11.23%
Revenue Next 5Y9.3%
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
GCP is valuated quite expensively with a Price/Earnings ratio of 45.84.
Compared to the rest of the industry, the Price/Earnings ratio of GCP is on the same level as its industry peers.
GCP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.60.
A Price/Forward Earnings ratio of 35.43 indicates a quite expensive valuation of GCP.
62.79% of the companies in the same industry are cheaper than GCP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GCP to the average of the S&P500 Index (22.39), we can say GCP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.84 | ||
| Fwd PE | 35.43 |
4.2 Price Multiples
72.09% of the companies in the same industry are cheaper than GCP, based on the Enterprise Value to EBITDA ratio.
GCP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GCP is more expensive than 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.21 | ||
| EV/EBITDA | 35.3 |
4.3 Compensation for Growth
GCP's 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.
A more expensive valuation may be justified as GCP's earnings are expected to grow with 20.13% in the coming years.
PEG (NY)1.7
PEG (5Y)N/A
EPS Next 2Y21.93%
EPS Next 3Y20.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, GCP is not a good candidate for dividend investing.
GCP's Dividend Yield is comparable with the industry average which is at 1.16.
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 | 0.57% |
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 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 2Y21.93%
EPS Next 3Y20.13%
FRA:GCP (6/13/2025, 3:28:21 PM)
204
-4.5 (-2.16%)
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 Cap217.54B
Analysts82.76
Price Target205.01 (0.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.82
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)5.09%
PT rev (3m)-7.61%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)6.48%
EPS NY rev (1m)1.99%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.84 | ||
| Fwd PE | 35.43 | ||
| P/S | 6.36 | ||
| P/FCF | 57.21 | ||
| P/OCF | 48.24 | ||
| P/B | 13.1 | ||
| P/tB | 40.18 | ||
| EV/EBITDA | 35.3 |
EPS(TTM)4.45
EY2.18%
EPS(NY)5.76
Fwd EY2.82%
FCF(TTM)3.57
FCFY1.75%
OCF(TTM)4.23
OCFY2.07%
SpS32.09
BVpS15.57
TBVpS5.08
PEG (NY)1.7
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 | 2.92 |
F-Score6
WACC10.08%
ROIC/WACC0.51
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 5Y15.9%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%-40.68%
Revenue Next Year14.12%
Revenue Next 2Y12.21%
Revenue Next 3Y11.23%
Revenue Next 5Y9.3%
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%