GENERAL ELECTRIC (GE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GE - US3696041033 - Common Stock
321.59 USD
+7.15 (+2.27%)
321.9 USD
+0.31 (+0.1%)
Overall GE gets a fundamental rating of 6 out of 10. We evaluated GE against 71 industry peers in the Aerospace & Defense industry. GE scores excellent on profitability, but there are some minor concerns on its financial health. GE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GE had positive earnings in the past year.
GE had a positive operating cash flow in the past year.
Of the past 5 years GE 4 years were profitable.
GE 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 6.29%, GE is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
GE's Return On Equity of 42.86% is amongst the best of the industry. GE outperforms 98.59% of its industry peers.
GE has a Return On Invested Capital of 7.55%. This is in the better half of the industry: GE outperforms 64.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GE is significantly below the industry average of 8.63%.
The last Return On Invested Capital (7.55%) for GE is above the 3 year average (3.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 42.86% | ||
| ROIC | 7.55% |
ROA(3y)3.55%
ROA(5y)1.86%
ROE(3y)22.52%
ROE(5y)13.1%
ROIC(3y)3.2%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 18.34%, GE belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
GE has a better Operating Margin (17.60%) than 87.32% of its industry peers.
In the last couple of years the Operating Margin of GE has grown nicely.
Looking at the Gross Margin, with a value of 35.88%, GE is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
GE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.6% | ||
| PM (TTM) | 18.34% | ||
| GM | 35.88% |
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
GE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GE has less shares outstanding than it did 1 year ago.
GE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GE has a worse debt to assets ratio.
2.2 Solvency
GE has an Altman-Z score of 3.36. This indicates that GE is financially healthy and has little risk of bankruptcy at the moment.
GE's Altman-Z score of 3.36 is in line compared to the rest of the industry. GE outperforms 47.89% of its industry peers.
The Debt to FCF ratio of GE is 3.23, which is a good value as it means it would take GE, 3.23 years of fcf income to pay off all of its debts.
GE has a better Debt to FCF ratio (3.23) than 83.10% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that GE is somewhat dependend on debt financing.
GE has a Debt to Equity ratio of 1.00. This is in the lower half of the industry: GE underperforms 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.75
WACC10.13%
2.3 Liquidity
A Current Ratio of 1.08 indicates that GE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, GE is doing worse than 88.73% of the companies in the same industry.
GE has a Quick Ratio of 1.08. This is a bad value and indicates that GE is not financially healthy enough and could expect problems in meeting its short term obligations.
GE has a worse Quick ratio (0.76) than 81.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.95% over the past year.
Measured over the past years, GE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.65% on average per year.
GE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.68%.
Measured over the past years, GE shows a very negative growth in Revenue. The Revenue has been decreasing by -15.57% on average per year.
EPS 1Y (TTM)45.95%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%44.35%
Revenue 1Y (TTM)17.68%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%26.41%
3.2 Future
Based on estimates for the next years, GE will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.40% on average per year.
GE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.54% yearly.
EPS Next Y43.27%
EPS Next 2Y28.6%
EPS Next 3Y24.52%
EPS Next 5Y19.4%
Revenue Next Year20.02%
Revenue Next 2Y15.86%
Revenue Next 3Y13.81%
Revenue Next 5Y11.54%
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
A Price/Earnings ratio of 52.46 indicates a quite expensive valuation of GE.
GE's Price/Earnings is on the same level as the industry average.
GE is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 43.31, the valuation of GE can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GE indicates a somewhat cheap valuation: GE is cheaper than 60.56% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GE to the average of the S&P500 Index (23.88), we can say GE is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.46 | ||
| Fwd PE | 43.31 |
4.2 Price Multiples
GE's Enterprise Value to EBITDA is on the same level as the industry average.
GE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GE is cheaper than 64.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.63 | ||
| EV/EBITDA | 38.63 |
4.3 Compensation for Growth
GE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GE may justify a higher PE ratio.
A more expensive valuation may be justified as GE's earnings are expected to grow with 24.52% in the coming years.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y28.6%
EPS Next 3Y24.52%
5. Dividend
5.1 Amount
GE has a yearly dividend return of 0.46%, which is pretty low.
Compared to an average industry Dividend Yield of 0.37, GE pays a better dividend. On top of this GE pays more dividend than 81.69% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, GE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of GE is nicely growing with an annual growth rate of 9.39%!
GE has paid a dividend for at least 10 years, which is a reliable track record.
GE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.39%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
GE pays out 17.08% of its income as dividend. This is a sustainable payout ratio.
GE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.08%
EPS Next 2Y28.6%
EPS Next 3Y24.52%
321.59
+7.15 (+2.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners80.14%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change0.31%
Market Cap339.22B
Revenue(TTM)43.95B
Net Income(TTM)8.06B
Analysts82.07
Price Target350.41 (8.96%)
Short Float %1.37%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend0.93
Dividend Growth(5Y)9.39%
DP17.08%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.78%
Min EPS beat(2)10.91%
Max EPS beat(2)12.64%
EPS beat(4)4
Avg EPS beat(4)15.06%
Min EPS beat(4)10.91%
Max EPS beat(4)23.03%
EPS beat(8)7
Avg EPS beat(8)13.54%
EPS beat(12)11
Avg EPS beat(12)24.24%
EPS beat(16)15
Avg EPS beat(16)29.91%
Revenue beat(2)2
Avg Revenue beat(2)4.08%
Min Revenue beat(2)2.75%
Max Revenue beat(2)5.4%
Revenue beat(4)3
Avg Revenue beat(4)1.51%
Min Revenue beat(4)-2.98%
Max Revenue beat(4)5.4%
Revenue beat(8)4
Avg Revenue beat(8)0.27%
Revenue beat(12)6
Avg Revenue beat(12)-15.02%
Revenue beat(16)6
Avg Revenue beat(16)-21.4%
PT rev (1m)1.5%
PT rev (3m)12.43%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)8.08%
EPS NY rev (1m)0.12%
EPS NY rev (3m)5.78%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.46 | ||
| Fwd PE | 43.31 | ||
| P/S | 7.72 | ||
| P/FCF | 52.63 | ||
| P/OCF | 44.91 | ||
| P/B | 18.03 | ||
| P/tB | 61.81 | ||
| EV/EBITDA | 38.63 |
EPS(TTM)6.13
EY1.91%
EPS(NY)7.43
Fwd EY2.31%
FCF(TTM)6.11
FCFY1.9%
OCF(TTM)7.16
OCFY2.23%
SpS41.66
BVpS17.83
TBVpS5.2
PEG (NY)1.21
PEG (5Y)N/A
Graham Number49.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 42.86% | ||
| ROCE | 8.5% | ||
| ROIC | 7.55% | ||
| ROICexc | 8.87% | ||
| ROICexgc | 10.71% | ||
| OM | 17.6% | ||
| PM (TTM) | 18.34% | ||
| GM | 35.88% | ||
| FCFM | 14.67% |
ROA(3y)3.55%
ROA(5y)1.86%
ROE(3y)22.52%
ROE(5y)13.1%
ROIC(3y)3.2%
ROIC(5y)N/A
ROICexc(3y)3.81%
ROICexc(5y)N/A
ROICexgc(3y)4.52%
ROICexgc(5y)N/A
ROCE(3y)3.6%
ROCE(5y)N/A
ROICexgc growth 3Y385.39%
ROICexgc 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 91.58% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.45% | ||
| Profit Quality | 79.94% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 3.36 |
F-Score6
WACC10.13%
ROIC/WACC0.75
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)45.95%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%44.35%
EPS Next Y43.27%
EPS Next 2Y28.6%
EPS Next 3Y24.52%
EPS Next 5Y19.4%
Revenue 1Y (TTM)17.68%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%26.41%
Revenue Next Year20.02%
Revenue Next 2Y15.86%
Revenue Next 3Y13.81%
Revenue Next 5Y11.54%
EBIT growth 1Y63.06%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year46.21%
EBIT Next 3Y22.96%
EBIT Next 5Y19.14%
FCF growth 1Y17.46%
FCF growth 3Y23.11%
FCF growth 5Y-10.02%
OCF growth 1Y15.36%
OCF growth 3Y12.23%
OCF growth 5Y-11.62%
GENERAL ELECTRIC / GE FAQ
Can you provide the ChartMill fundamental rating for GENERAL ELECTRIC?
ChartMill assigns a fundamental rating of 5 / 10 to GE.
Can you provide the valuation status for GENERAL ELECTRIC?
ChartMill assigns a valuation rating of 4 / 10 to GENERAL ELECTRIC (GE). This can be considered as Fairly Valued.
What is the profitability of GE stock?
GENERAL ELECTRIC (GE) has a profitability rating of 7 / 10.
How financially healthy is GENERAL ELECTRIC?
The financial health rating of GENERAL ELECTRIC (GE) is 5 / 10.
What is the expected EPS growth for GENERAL ELECTRIC (GE) stock?
The Earnings per Share (EPS) of GENERAL ELECTRIC (GE) is expected to grow by 43.27% in the next year.