GENERAL ELECTRIC (GE) Stock Fundamental Analysis
USA - NYSE:GE - US3696041033 - Common Stock
297 USD
-2.45 (-0.82%)
297 USD
0 (0%)
GE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. GE scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, GE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year GE was profitable.
In the past year GE had a positive cash flow from operations.
GE had positive earnings in 4 of the past 5 years.
In the past 5 years GE always reported a positive cash flow from operatings.
1.2 Ratios
GE's Return On Assets of 6.19% is fine compared to the rest of the industry. GE outperforms 75.36% of its industry peers.
GE has a better Return On Equity (40.54%) than 98.55% of its industry peers.
The Return On Invested Capital of GE (6.98%) is better than 63.77% 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 8.29%.
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
Looking at the Profit Margin, with a value of 18.64%, GE belongs to the top of the industry, outperforming 98.55% of the companies in the same industry.
The Operating Margin of GE (16.74%) is better than 88.41% of its industry peers.
GE's Operating Margin has improved in the last couple of years.
GE has a better Gross Margin (35.97%) than 75.36% of its industry peers.
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
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.
The number of shares outstanding for GE has been reduced compared to 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 3.26. This indicates that GE is financially healthy and has little risk of bankruptcy at the moment.
GE's Altman-Z score of 3.26 is in line compared to the rest of the industry. GE outperforms 47.83% of its industry peers.
The Debt to FCF ratio of GE is 3.44, which is a good value as it means it would take GE, 3.44 years of fcf income to pay off all of its debts.
GE has a better Debt to FCF ratio (3.44) than 82.61% 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: 71.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.72
WACC9.71%
2.3 Liquidity
GE has a Current Ratio of 1.04. This is a normal value and indicates that GE is financially healthy and should not expect problems in meeting its short term obligations.
GE's Current ratio of 1.04 is on the low side compared to the rest of the industry. GE is outperformed by 84.06% of its industry peers.
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 81.16% 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.
The Revenue has grown by 13.05% in the past year. This is quite good.
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
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.
The Revenue is expected to grow by 10.41% on average over the next years. This is quite good.
EPS Next Y35.44%
EPS Next 2Y25.93%
EPS Next 3Y22.49%
EPS Next 5Y18.03%
Revenue Next Year17.71%
Revenue Next 2Y14.23%
Revenue Next 3Y12.57%
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
The Price/Earnings ratio is 52.85, which means the current valuation is very expensive for GE.
Compared to the rest of the industry, the Price/Earnings ratio of GE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of GE to the average of the S&P500 Index (27.86), we can say GE is valued expensively.
GE is valuated quite expensively with a Price/Forward Earnings ratio of 41.71.
The rest of the industry has a similar Price/Forward Earnings ratio as GE.
The average S&P500 Price/Forward Earnings ratio is at 23.29. GE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.85 | ||
| Fwd PE | 41.71 |
4.2 Price Multiples
GE's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, GE is valued a bit cheaper than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.34 | ||
| EV/EBITDA | 39.52 |
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.
GE's earnings are expected to grow with 22.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y25.93%
EPS Next 3Y22.49%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, GE is not a good candidate for dividend investing.
GE's Dividend Yield is a higher than the industry average which is at 1.45.
With a Dividend Yield of 0.48, GE pays less dividend than the S&P500 average, which is at 2.41.
| 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
16.78% of the earnings are spent on dividend by GE. This is a low number and sustainable payout ratio.
GE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.78%
EPS Next 2Y25.93%
EPS Next 3Y22.49%
297
-2.45 (-0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner Change-3.78%
Ins Owners0.15%
Ins Owner Change0.54%
Market Cap314.95B
Analysts82.22
Price Target305.81 (2.97%)
Short Float %1.35%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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)1.61%
PT rev (3m)21.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.58%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)6.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)3.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.85 | ||
| Fwd PE | 41.71 | ||
| P/S | 7.57 | ||
| P/FCF | 57.34 | ||
| P/OCF | 48 | ||
| P/B | 16.46 | ||
| P/tB | 54.37 | ||
| EV/EBITDA | 39.52 |
EPS(TTM)5.62
EY1.89%
EPS(NY)7.12
Fwd EY2.4%
FCF(TTM)5.18
FCFY1.74%
OCF(TTM)6.19
OCFY2.08%
SpS39.24
BVpS18.04
TBVpS5.46
PEG (NY)1.49
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 | 3.26 |
F-Score7
WACC9.71%
ROIC/WACC0.72
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 Y35.44%
EPS Next 2Y25.93%
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 Year17.71%
Revenue Next 2Y14.23%
Revenue Next 3Y12.57%
Revenue Next 5Y10.41%
EBIT growth 1Y54.62%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year40.19%
EBIT Next 3Y20.83%
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%