GENERAL ELECTRIC CO (GE)

US3696041033 - Common Stock

169.81  +5.14 (+3.12%)

After market: 169.8 -0.01 (-0.01%)

Fundamental Rating

4

Overall GE gets a fundamental rating of 4 out of 10. We evaluated GE against 66 industry peers in the Aerospace & Defense industry. GE has an average financial health and profitability rating. GE has a valuation in line with the averages, but on the other hand it scores bad on growth.



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6

1. Profitability

1.1 Basic Checks

In the past year GE was profitable.
GE had a positive operating cash flow in the past year.
In multiple years GE reported negative net income over the last 5 years.
In the past 5 years GE always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.78%, GE is in line with its industry, outperforming 56.06% of the companies in the same industry.
GE has a Return On Equity of 25.03%. This is amongst the best in the industry. GE outperforms 95.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.02%, 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 1.62%. This is significantly below the industry average of 8.05%.
The 3 year average ROIC (1.62%) for GE is below the current ROIC(4.02%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.78%
ROE 25.03%
ROIC 4.02%
ROA(3y)0.62%
ROA(5y)0.36%
ROE(3y)5.52%
ROE(5y)2.32%
ROIC(3y)1.62%
ROIC(5y)N/A

1.3 Margins

GE has a better Profit Margin (8.49%) than 74.24% of its industry peers.
GE's Profit Margin has improved in the last couple of years.
GE's Operating Margin of 8.57% is fine compared to the rest of the industry. GE outperforms 62.12% of its industry peers.
GE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 27.76%, GE is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
In the last couple of years the Gross Margin of GE has remained more or less at the same level.
Industry RankSector Rank
OM 8.57%
PM (TTM) 8.49%
GM 27.76%
OM growth 3YN/A
OM growth 5Y-7.03%
PM growth 3Y26.48%
PM growth 5YN/A
GM growth 3Y4%
GM growth 5Y1.27%

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4

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.
The number of shares outstanding for GE remains at a similar level compared to 1 year ago.
Compared to 5 years ago, GE has about the same amount of shares outstanding.
GE has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.53 indicates that GE is not a great score, but indicates only limited risk for bankruptcy at the moment.
GE has a Altman-Z score of 2.53. This is comparable to the rest of the industry: GE outperforms 51.52% of its industry peers.
The Debt to FCF ratio of GE is 3.62, which is a good value as it means it would take GE, 3.62 years of fcf income to pay off all of its debts.
GE's Debt to FCF ratio of 3.62 is amongst the best of the industry. GE outperforms 83.33% of its industry peers.
GE has a Debt/Equity ratio of 0.97. This is a neutral value indicating GE is somewhat dependend on debt financing.
The Debt to Equity ratio of GE (0.97) is worse than 74.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF 3.62
Altman-Z 2.53
ROIC/WACC0.48
WACC8.35%

2.3 Liquidity

GE has a Current Ratio of 1.14. This is a normal value and indicates that GE is financially healthy and should not expect problems in meeting its short term obligations.
GE has a Current ratio of 1.14. This is in the lower half of the industry: GE underperforms 72.73% of its industry peers.
GE has a Quick Ratio of 1.14. This is a bad value and indicates that GE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.85, GE is doing worse than 71.21% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.14
Quick Ratio 0.85

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3

3. Growth

3.1 Past

GE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.63%, which is quite impressive.
Measured over the past years, GE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.91% on average per year.
GE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.72%.
The Revenue has been decreasing by -6.87% on average over the past years.
EPS 1Y (TTM)31.63%
EPS 3Y106.06%
EPS 5Y-11.91%
EPS Q2Q%76.47%
Revenue 1Y (TTM)-18.72%
Revenue growth 3Y-3.59%
Revenue growth 5Y-6.87%
Sales Q2Q%-50.76%

3.2 Future

GE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.91% yearly.
GE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.44% yearly.
EPS Next Y49.74%
EPS Next 2Y36.38%
EPS Next 3Y30.47%
EPS Next 5Y22.91%
Revenue Next Year-43.97%
Revenue Next 2Y-20.62%
Revenue Next 3Y-11.38%
Revenue Next 5Y-6.44%

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 stable.

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4

4. Valuation

4.1 Price/Earnings Ratio

GE is valuated quite expensively with a Price/Earnings ratio of 43.88.
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 24.41, GE is valued quite expensively.
A Price/Forward Earnings ratio of 32.60 indicates a quite expensive valuation of GE.
The rest of the industry has a similar Price/Forward Earnings ratio as GE.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, GE is valued quite expensively.
Industry RankSector Rank
PE 43.88
Fwd PE 32.6

4.2 Price Multiples

GE's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, GE is valued a bit cheaper than 75.76% of the companies in the same industry.
Industry RankSector Rank
P/FCF 34.18
EV/EBITDA 28.61

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GE may justify a higher PE ratio.
GE's earnings are expected to grow with 30.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y36.38%
EPS Next 3Y30.47%

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4

5. Dividend

5.1 Amount

GE has a yearly dividend return of 0.69%, which is pretty low.
Compared to an average industry Dividend Yield of 1.26, GE pays a better dividend. On top of this GE pays more dividend than 80.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, GE's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.69%

5.2 History

The dividend of GE decreases each year by -33.36%.
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)-33.36%
Div Incr Years2
Div Non Decr Years4

5.3 Sustainability

13.60% of the earnings are spent on dividend by GE. This is a low number and sustainable payout ratio.
DP13.6%
EPS Next 2Y36.38%
EPS Next 3Y30.47%

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GENERAL ELECTRIC CO

NYSE:GE (7/26/2024, 7:04:00 PM)

After market: 169.8 -0.01 (-0.01%)

169.81

+5.14 (+3.12%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap185.88B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.69%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 43.88
Fwd PE 32.6
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)0.88
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.78%
ROE 25.03%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.57%
PM (TTM) 8.49%
GM 27.76%
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 Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.14
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)
High Growth Momentum
Growth
EPS 1Y (TTM)31.63%
EPS 3Y106.06%
EPS 5Y
EPS Q2Q%
EPS Next Y49.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.72%
Revenue growth 3Y-3.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y