GENERAL ELECTRIC (GE) Stock Fundamental Analysis
USA - NYSE:GE - US3696041033 - Common Stock
281.69 USD
+0.13 (+0.05%)
282.215 USD
+0.52 (+0.19%)
GE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Aerospace & Defense industry. While GE has a great profitability rating, there are some minor concerns on its financial health. GE 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 GE was profitable.
GE had a positive operating cash flow in the past year.
Of the past 5 years GE 4 years were profitable.
Each year in the past 5 years GE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.19%, GE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 40.54%, GE belongs to the top of the industry, outperforming 98.53% of the companies in the same industry.
GE's Return On Invested Capital of 6.98% is fine compared to the rest of the industry. GE outperforms 64.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GE is significantly below the industry average of 8.21%.
The 3 year average ROIC (3.20%) for GE is below the current ROIC(6.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 40.54% | ||
| ROIC | 6.98% |
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
The Profit Margin of GE (18.64%) is better than 98.53% of its industry peers.
GE has a Operating Margin of 16.74%. This is amongst the best in the industry. GE outperforms 88.24% of its industry peers.
GE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 35.97%, GE is doing good in the industry, outperforming 73.53% of the companies in the same industry.
GE's Gross Margin has improved in the last couple of years.
| 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 GE is destroying value.
Compared to 1 year ago, GE has less shares outstanding
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
An Altman-Z score of 3.15 indicates that GE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.15, GE is in line with its industry, outperforming 48.53% of the companies in the same industry.
GE has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as GE would need 3.44 years to pay back of all of its debts.
The Debt to FCF ratio of GE (3.44) is better than 82.35% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that GE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.89, GE is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.73
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.04 indicates that GE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.04, GE is not doing good in the industry: 83.82% of the companies in the same industry are doing better.
A Quick Ratio of 0.73 indicates that GE may have some problems paying its short term obligations.
GE's Quick ratio of 0.73 is on the low side compared to the rest of the industry. GE is outperformed by 80.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.22% over the past year.
The Earnings Per Share has been decreasing by -1.65% on average over the past years.
Looking at the last year, GE shows a quite strong growth in Revenue. The Revenue has grown by 13.05% in the last year.
The Revenue for GE 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
GE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.03% yearly.
Based on estimates for the next years, GE will show a quite strong growth in Revenue. The Revenue will grow by 10.41% on average per year.
EPS Next Y35.45%
EPS Next 2Y26.22%
EPS Next 3Y22.49%
EPS Next 5Y18.03%
Revenue Next Year17.8%
Revenue Next 2Y14.5%
Revenue Next 3Y12.78%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 50.12 indicates a quite expensive valuation of GE.
GE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, GE is valued quite expensively.
GE is valuated quite expensively with a Price/Forward Earnings ratio of 39.38.
GE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.73. GE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.12 | ||
| Fwd PE | 39.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GE is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, GE is valued a bit cheaper than the industry average as 61.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.38 | ||
| EV/EBITDA | 37.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GE has a very decent profitability rating, which may justify a higher PE ratio.
GE's earnings are expected to grow with 22.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y26.22%
EPS Next 3Y22.49%
5. Dividend
5.1 Amount
GE has a yearly dividend return of 0.51%, which is pretty low.
Compared to an average industry Dividend Yield of 1.52, GE pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.51, GE pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
On average, the dividend of GE grows each year by 9.39%, which is quite nice.
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
16.78% of the earnings are spent on dividend by GE. This is a low number and sustainable payout ratio.
The dividend of GE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.78%
EPS Next 2Y26.22%
EPS Next 3Y22.49%
281.69
+0.13 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change-3.77%
Ins Owners0.15%
Ins Owner Change0.54%
Market Cap298.72B
Analysts82.22
Price Target305.81 (8.56%)
Short Float %1.11%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend0.93
Dividend Growth(5Y)9.39%
DP16.78%
Div Incr Years2
Div Non Decr Years4
Ex-Date
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)14.81%
PT rev (3m)33.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)6.05%
EPS NY rev (3m)6.66%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)2.44%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)3.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.12 | ||
| Fwd PE | 39.38 | ||
| P/S | 7.18 | ||
| P/FCF | 54.38 | ||
| P/OCF | 45.53 | ||
| P/B | 15.61 | ||
| P/tB | 51.56 | ||
| EV/EBITDA | 37.2 |
EPS(TTM)5.62
EY2%
EPS(NY)7.15
Fwd EY2.54%
FCF(TTM)5.18
FCFY1.84%
OCF(TTM)6.19
OCFY2.2%
SpS39.24
BVpS18.04
TBVpS5.46
PEG (NY)1.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 40.54% | ||
| ROCE | 7.85% | ||
| ROIC | 6.98% | ||
| ROICexc | 8.05% | ||
| ROICexgc | 9.74% | ||
| 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)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
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 | 3.15 |
F-Score7
WACC9.58%
ROIC/WACC0.73
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 Y35.45%
EPS Next 2Y26.22%
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 Year17.8%
Revenue Next 2Y14.5%
Revenue Next 3Y12.78%
Revenue Next 5Y10.41%
EBIT growth 1Y54.62%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year39.35%
EBIT Next 3Y20.78%
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%