GENERAL ELECTRIC (GCP.DE) Stock Fundamental Analysis
Europe - FRA:GCP - US3696043013 - Common Stock
255.5 EUR
-0.5 (-0.2%)
GCP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 industry peers in the Aerospace & Defense industry. While GCP has a great profitability rating, there are some minor 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.
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
The Return On Assets of GCP (6.19%) is better than 79.07% of its industry peers.
GCP has a Return On Equity of 40.54%. This is amongst the best in the industry. GCP outperforms 95.35% of its industry peers.
GCP has a worse Return On Invested Capital (5.52%) than 69.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GCP is significantly below the industry average of 9.61%.
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
Looking at the Profit Margin, with a value of 18.64%, GCP belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
Looking at the Operating Margin, with a value of 16.74%, GCP belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
In the last couple of years the Operating Margin of GCP has grown nicely.
With a decent Gross Margin value of 35.97%, GCP is doing good in the industry, outperforming 60.47% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 3.27 indicates that GCP is not in any danger for bankruptcy at the moment.
GCP has a better Altman-Z score (3.27) than 72.09% of its industry peers.
The Debt to FCF ratio of GCP is 3.44, which is a good value as it means it would take GCP, 3.44 years of fcf income to pay off all of its debts.
GCP's Debt to FCF ratio of 3.44 is fine compared to the rest of the industry. GCP outperforms 67.44% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that GCP is somewhat dependend on debt financing.
The Debt to Equity ratio of GCP (0.89) is worse than 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.58
WACC9.57%
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 69.77% 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
GCP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.22%, which is quite impressive.
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.
The Revenue for GCP have been decreasing by -15.57% on average. This is quite bad
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
The Earnings Per Share is expected to grow by 18.03% 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 10.41% on average per year.
EPS Next Y35.44%
EPS Next 2Y25.93%
EPS Next 3Y22.49%
EPS Next 5Y18.03%
Revenue Next Year17.71%
Revenue Next 2Y14.23%
Revenue Next 3Y12.57%
Revenue Next 5Y10.41%
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
With a Price/Earnings ratio of 53.45, GCP can be considered very expensive at the moment.
GCP's Price/Earnings is on the same level as the industry average.
GCP is valuated expensively when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 42.18, which means the current valuation is very expensive for GCP.
Based on the Price/Forward Earnings ratio, GCP is valued a bit more expensive than the industry average as 60.47% of the companies are valued more cheaply.
GCP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.45 | ||
| Fwd PE | 42.18 |
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 69.77% of the companies listed in the same industry.
GCP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.98 | ||
| EV/EBITDA | 39.71 |
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 22.49% in the coming years.
PEG (NY)1.51
PEG (5Y)N/A
EPS Next 2Y25.93%
EPS Next 3Y22.49%
5. Dividend
5.1 Amount
GCP has a yearly dividend return of 0.48%, which is pretty low.
GCP's Dividend Yield is comparable with the industry average which is at 1.27.
With a Dividend Yield of 0.48, GCP pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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
16.78% 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.
DP16.78%
EPS Next 2Y25.93%
EPS Next 3Y22.49%
FRA:GCP (10/3/2025, 12:32:07 PM)
255.5
-0.5 (-0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap270.94B
Analysts82.22
Price Target261.76 (2.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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)0.75%
PT rev (3m)20.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.58%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)6.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)3.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.45 | ||
| Fwd PE | 42.18 | ||
| P/S | 7.65 | ||
| P/FCF | 57.98 | ||
| P/OCF | 48.54 | ||
| P/B | 16.64 | ||
| P/tB | 54.97 | ||
| EV/EBITDA | 39.71 |
EPS(TTM)4.78
EY1.87%
EPS(NY)6.06
Fwd EY2.37%
FCF(TTM)4.41
FCFY1.72%
OCF(TTM)5.26
OCFY2.06%
SpS33.38
BVpS15.35
TBVpS4.65
PEG (NY)1.51
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 | 3.27 |
F-Score7
WACC9.57%
ROIC/WACC0.58
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 Y35.44%
EPS Next 2Y25.93%
EPS Next 3Y22.49%
EPS Next 5Y18.03%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%23.45%
Revenue Next Year17.71%
Revenue Next 2Y14.23%
Revenue Next 3Y12.57%
Revenue Next 5Y10.41%
EBIT growth 1Y54.62%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year40.19%
EBIT Next 3Y20.83%
EBIT Next 5Y16.23%
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%