GENERAL ELECTRIC CO (GE)
US3696041033 - Common Stock
Taking everything into account, GE scores 5 out of 10 in our fundamental rating. GE was compared to 10 industry peers in the Industrial Conglomerates industry. Both the profitability and the financial health of GE get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year GE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: GE reported negative net income in multiple years.
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 5.63%, GE belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The Return On Equity of GE (33.56%) is better than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.21%, GE is in line with its industry, outperforming 50.00% of the companies in the same industry.
GE had an Average Return On Invested Capital over the past 3 years of 1.77%. This is significantly below the industry average of 7.86%.
The 3 year average ROIC (1.77%) for GE is below the current ROIC(2.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 33.56% | ||
| ROIC | 2.21% |
ROA(3y)0.73%
ROA(5y)0.43%
ROE(3y)5.53%
ROE(5y)2.33%
ROIC(3y)1.77%
ROIC(5y)N/A
1.3 Margins
GE has a better Profit Margin (13.52%) than 90.00% of its industry peers.
GE's Profit Margin has improved in the last couple of years.
The Operating Margin of GE (4.72%) is comparable to the rest of the industry.
GE's Operating Margin has declined in the last couple of years.
GE has a Gross Margin (24.50%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.72% | ||
| PM (TTM) | 13.52% | ||
| GM | 24.5% |
OM growth 3YN/A
OM growth 5Y-7.03%
PM growth 3Y26.48%
PM growth 5YN/A
GM growth 3Y4%
GM growth 5Y1.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GE is destroying value.
GE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for GE remains at a similar level compared to 5 years ago.
Compared to 1 year ago, GE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.02 indicates that GE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GE (2.02) is better than 80.00% of its industry peers.
The Debt to FCF ratio of GE is 5.85, which is a neutral value as it means it would take GE, 5.85 years of fcf income to pay off all of its debts.
GE has a Debt to FCF ratio of 5.85. This is in the better half of the industry: GE outperforms 70.00% of its industry peers.
GE has a Debt/Equity ratio of 0.72. This is a neutral value indicating GE is somewhat dependend on debt financing.
The Debt to Equity ratio of GE (0.72) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.26
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.18 indicates that GE should not have too much problems paying its short term obligations.
The Current ratio of GE (1.18) is better than 70.00% of its industry peers.
A Quick Ratio of 0.85 indicates that GE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, GE is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for GE have decreased by -6.98% in the last year.
GE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.91% yearly.
GE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.76%.
GE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.87% yearly.
EPS 1Y (TTM)-6.98%
EPS 3Y106.06%
EPS 5Y-11.91%
EPS growth Q2Q-16.94%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y-3.59%
Revenue growth 5Y-6.87%
Revenue growth Q2Q-10.85%
3.2 Future
Based on estimates for the next years, GE will show a very strong growth in Earnings Per Share. The EPS will grow by 28.23% on average per year.
GE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.28% yearly.
EPS Next Y45.27%
EPS Next 2Y34.94%
EPS Next 3Y27.48%
EPS Next 5Y28.23%
Revenue Next Year-44.08%
Revenue Next 2Y-21.28%
Revenue Next 3Y-12.23%
Revenue Next 5Y8.28%
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
With a Price/Earnings ratio of 58.08, GE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GE is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.20, GE is valued quite expensively.
With a Price/Forward Earnings ratio of 39.98, GE can be considered very expensive at the moment.
GE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GE is cheaper than 70.00% of the companies in the same industry.
GE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.08 | ||
| Fwd PE | 39.98 |
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 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.59 | ||
| EV/EBITDA | 29.64 |
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 27.48% in the coming years.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y34.94%
EPS Next 3Y27.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, GE is not a good candidate for dividend investing.
GE's Dividend Yield is comparable with the industry average which is at 6.97.
Compared to an average S&P500 Dividend Yield of 2.45, GE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of GE decreases each year by -33.36%.
GE has been paying a dividend for at least 10 years, so it has a reliable track record.
GE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-33.36%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
6.41% of the earnings are spent on dividend by GE. This is a low number and sustainable payout ratio.
DP6.41%
EPS Next 2Y34.94%
EPS Next 3Y27.48%
GENERAL ELECTRIC CO
NYSE:GE (4/23/2024, 6:45:55 PM)
After market: 163.3 +0.68 (+0.42%)162.62
+12.43 (+8.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Ins Owner Change
Market Cap177.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Dividend Growth(5Y)
DP
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Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.08 | ||
| Fwd PE | 39.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 33.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.72% | ||
| PM (TTM) | 13.52% | ||
| GM | 24.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.98%
EPS 3Y106.06%
EPS 5Y
EPS growth Q2Q
EPS Next Y45.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.76%
Revenue growth 3Y-3.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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