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 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 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.
GCP had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 5.64%, GCP belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
The Return On Equity of GCP (36.34%) is better than 97.67% of its industry peers.
GCP has a Return On Invested Capital (5.12%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GCP is significantly below the industry average of 9.16%.
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.
With an excellent Operating Margin value of 16.35%, GCP belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
GCP's Operating Margin has improved in the last couple of years.
The Gross Margin of GCP (35.83%) is better than 60.47% of its industry peers.
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
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
GCP has less shares outstanding than it did 5 years ago.
GCP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.85 indicates that GCP is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GCP (2.85) is better than 72.09% of its industry peers.
The Debt to FCF ratio of GCP is 4.44, which is a neutral value as it means it would take GCP, 4.44 years of fcf income to pay off 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.
The Debt to Equity ratio of GCP (0.91) is worse than 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.51
WACC10.04%
2.3 Liquidity
A Current Ratio of 1.08 indicates that GCP should not have too much problems paying its short term obligations.
GCP has a Current ratio of 1.08. This is in the lower half of the industry: GCP underperforms 67.44% of its industry peers.
A Quick Ratio of 0.77 indicates that GCP may have some problems paying its short term obligations.
GCP has a Quick ratio of 0.77. This is comparable to the rest of the industry: GCP outperforms 55.81% 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 54.03%, which is quite impressive.
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.
The Revenue has grown by 8.81% in the past year. This is quite good.
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
Based on estimates for the next years, GCP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.13% on average per year.
Based on estimates for the next years, GCP will show a quite strong growth in Revenue. The Revenue will grow by 9.14% on average per year.
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
The Price/Earnings ratio is 44.85, which means the current valuation is very expensive for GCP.
GCP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.91. GCP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 34.64 indicates a quite expensive valuation of GCP.
GCP's Price/Forward Earnings 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.
The average S&P500 Price/Forward Earnings ratio is at 21.85. GCP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.85 | ||
| Fwd PE | 34.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GCP is valued a bit more expensive than the industry average as 69.77% of the companies are valued more cheaply.
GCP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.94 | ||
| EV/EBITDA | 33.8 |
4.3 Compensation for Growth
GCP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GCP may justify a higher PE ratio.
GCP's earnings are expected to grow with 20.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y21.93%
EPS Next 3Y20.13%
5. Dividend
5.1 Amount
GCP has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 1.31, GCP has a dividend in line with its industry peers.
With a Dividend Yield of 0.63, GCP pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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
17.50% of the earnings are spent on dividend by GCP. This is a low number and sustainable payout ratio.
The dividend of GCP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.5%
EPS Next 2Y21.93%
EPS Next 3Y20.13%
FRA:GCP (5/23/2025, 5:23:33 PM)
204.5
0 (0%)
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 Cap218.08B
Analysts84.83
Price Target202.72 (-0.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend0.83
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)-5.86%
PT rev (3m)-7.78%
EPS NQ rev (1m)5.84%
EPS NQ rev (3m)5.81%
EPS NY rev (1m)1.99%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.85 | ||
| Fwd PE | 34.64 | ||
| P/S | 6.22 | ||
| P/FCF | 55.94 | ||
| P/OCF | 47.17 | ||
| P/B | 12.81 | ||
| P/tB | 39.28 | ||
| EV/EBITDA | 33.8 |
EPS(TTM)4.56
EY2.23%
EPS(NY)5.9
Fwd EY2.89%
FCF(TTM)3.66
FCFY1.79%
OCF(TTM)4.34
OCFY2.12%
SpS32.9
BVpS15.96
TBVpS5.21
PEG (NY)1.66
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 | 2.85 |
F-Score6
WACC10.04%
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 5Y15.13%
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 Year34.71%
EBIT Next 3Y19.28%
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%