GENERAL ELECTRIC (GE) Stock Fundamental Analysis
USA - NYSE:GE - US3696041033 - Common Stock
303.87 USD
-2.52 (-0.82%)
304.1 USD
+0.23 (+0.08%)
Overall GE gets a fundamental rating of 5 out of 10. We evaluated GE against 70 industry peers in the Aerospace & Defense industry. GE scores excellent on profitability, but there are some minor concerns on its financial health. GE has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years GE 4 years were profitable.
In the past 5 years GE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GE (6.29%) is better than 74.29% of its industry peers.
GE has a Return On Equity of 42.86%. This is amongst the best in the industry. GE outperforms 98.57% of its industry peers.
GE's Return On Invested Capital of 7.55% is fine compared to the rest of the industry. GE outperforms 70.00% of its industry peers.
GE had an Average Return On Invested Capital over the past 3 years of 3.20%. This is significantly below the industry average of 8.41%.
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
GE has a Profit Margin of 18.34%. This is amongst the best in the industry. GE outperforms 98.57% of its industry peers.
GE has a better Operating Margin (17.60%) than 87.14% of its industry peers.
In the last couple of years the Operating Margin of GE has grown nicely.
With a decent Gross Margin value of 35.88%, GE is doing good in the industry, outperforming 75.71% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GE is destroying value.
Compared to 1 year ago, GE has less shares outstanding
Compared to 5 years ago, GE has less shares outstanding
The debt/assets ratio for GE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.28 indicates that GE is not in any danger for bankruptcy at the moment.
GE has a Altman-Z score of 3.28. This is comparable to the rest of the industry: GE outperforms 44.29% of its industry peers.
GE has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as GE would need 3.23 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.23, GE belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
A Debt/Equity ratio of 1.00 indicates that GE is somewhat dependend on debt financing.
GE has a worse Debt to Equity ratio (1.00) than 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 3.28 |
ROIC/WACC0.8
WACC9.41%
2.3 Liquidity
GE has a Current Ratio of 1.08. This is a normal value and indicates that GE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.08, GE is doing worse than 84.29% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that GE may have some problems paying its short term obligations.
GE has a Quick ratio of 0.76. This is amonst the worse of the industry: GE underperforms 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
GE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.95%, which is quite impressive.
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.
The Revenue has grown by 17.68% in the past year. This is quite good.
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 18.03% on average per year.
GE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.41% yearly.
EPS Next Y35.55%
EPS Next 2Y25.93%
EPS Next 3Y22.61%
EPS Next 5Y18.03%
Revenue Next Year17.88%
Revenue Next 2Y14.47%
Revenue Next 3Y12.73%
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
Based on the Price/Earnings ratio of 49.57, the valuation of GE can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as GE.
The average S&P500 Price/Earnings ratio is at 26.91. GE is valued rather expensively when compared to this.
GE is valuated quite expensively with a Price/Forward Earnings ratio of 42.67.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GE is on the same level as its industry peers.
GE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.57 | ||
| Fwd PE | 42.67 |
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 67.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50 | ||
| EV/EBITDA | 37.03 |
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.
A more expensive valuation may be justified as GE's earnings are expected to grow with 22.61% in the coming years.
PEG (NY)1.39
PEG (5Y)N/A
EPS Next 2Y25.93%
EPS Next 3Y22.61%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, GE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.15, GE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, GE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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.
The dividend of GE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.08%
EPS Next 2Y25.93%
EPS Next 3Y22.61%
303.87
-2.52 (-0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner Change-0.06%
Ins Owners0.15%
Ins Owner Change0.54%
Market Cap322.24B
Revenue(TTM)43.95B
Net Income(TTM)8.06B
Analysts82.31
Price Target311.68 (2.57%)
Short Float %1.35%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.93
Dividend Growth(5Y)9.39%
DP17.08%
Div Incr Years2
Div Non Decr Years4
Ex-Date
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)1.92%
PT rev (3m)24.25%
EPS NQ rev (1m)1.61%
EPS NQ rev (3m)5.41%
EPS NY rev (1m)0%
EPS NY rev (3m)6.04%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)3.14%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)3.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.57 | ||
| Fwd PE | 42.67 | ||
| P/S | 7.33 | ||
| P/FCF | 50 | ||
| P/OCF | 42.66 | ||
| P/B | 17.13 | ||
| P/tB | 58.72 | ||
| EV/EBITDA | 37.03 |
EPS(TTM)6.13
EY2.02%
EPS(NY)7.12
Fwd EY2.34%
FCF(TTM)6.08
FCFY2%
OCF(TTM)7.12
OCFY2.34%
SpS41.44
BVpS17.74
TBVpS5.18
PEG (NY)1.39
PEG (5Y)N/A
Graham Number49.46
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 | 3.28 |
F-Score6
WACC9.41%
ROIC/WACC0.8
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 Y35.55%
EPS Next 2Y25.93%
EPS Next 3Y22.61%
EPS Next 5Y18.03%
Revenue 1Y (TTM)17.68%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%26.41%
Revenue Next Year17.88%
Revenue Next 2Y14.47%
Revenue Next 3Y12.73%
Revenue Next 5Y10.41%
EBIT growth 1Y63.06%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year40.19%
EBIT Next 3Y20.83%
EBIT Next 5Y16.23%
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.
What is the valuation status of GENERAL ELECTRIC (GE) stock?
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.
What is the financial health of GENERAL ELECTRIC (GE) stock?
The financial health rating of GENERAL ELECTRIC (GE) is 5 / 10.
Is the dividend of GENERAL ELECTRIC sustainable?
The dividend rating of GENERAL ELECTRIC (GE) is 5 / 10 and the dividend payout ratio is 17.08%.