GENERAL ELECTRIC (GE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GE - US3696041033 - Common Stock
283.6 USD
-1.71 (-0.6%)
283.6 USD
0 (0%)
Taking everything into account, GE scores 5 out of 10 in our fundamental rating. GE was compared to 72 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 not valued too expensively and it also shows 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.
GE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GE had a positive operating cash flow.
1.2 Ratios
GE has a Return On Assets of 6.29%. This is in the better half of the industry: GE outperforms 75.00% of its industry peers.
The Return On Equity of GE (42.86%) is better than 98.61% of its industry peers.
GE's Return On Invested Capital of 7.55% is fine compared to the rest of the industry. GE outperforms 65.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GE is significantly below the industry average of 8.58%.
The 3 year average ROIC (3.20%) for GE is below the current ROIC(7.55%), indicating increased profibility in the last year.
| 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 better Profit Margin (18.34%) than 98.61% of its industry peers.
GE's Operating Margin of 17.60% is amongst the best of the industry. GE outperforms 87.50% 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 75.00% of the companies in the same industry.
In the last couple of years the Gross Margin of GE has grown nicely.
| 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
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.
The Altman-Z score of GE (3.15) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of GE (3.23) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that GE is somewhat dependend on debt financing.
GE has a Debt to Equity ratio of 1.00. This is in the lower half of the industry: GE underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.78
WACC9.72%
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.
GE has a worse Current ratio (1.08) than 88.89% of its industry peers.
A Quick Ratio of 0.76 indicates that GE may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, GE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.95% over the past year.
The Earnings Per Share has been decreasing by -1.65% on average over the past years.
GE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.68%.
GE shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -15.57% yearly.
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
GE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.52% yearly.
The Revenue is expected to grow by 11.59% on average over the next years. This is quite good.
EPS Next Y43.1%
EPS Next 2Y28.31%
EPS Next 3Y24.34%
EPS Next 5Y19.52%
Revenue Next Year20.04%
Revenue Next 2Y15.8%
Revenue Next 3Y13.7%
Revenue Next 5Y11.59%
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 46.26 indicates a quite expensive valuation of GE.
GE's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of GE to the average of the S&P500 Index (26.59), we can say GE is valued expensively.
Based on the Price/Forward Earnings ratio of 38.36, the valuation of GE can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.80. GE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.26 | ||
| Fwd PE | 38.36 |
4.2 Price Multiples
GE's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GE indicates a somewhat cheap valuation: GE is cheaper than 65.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.41 | ||
| EV/EBITDA | 34.35 |
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 24.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)N/A
EPS Next 2Y28.31%
EPS Next 3Y24.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, GE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.12, GE pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.49, GE pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of GE is nicely growing with an annual growth rate of 9.39%!
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)9.39%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
17.08% 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.
DP17.08%
EPS Next 2Y28.31%
EPS Next 3Y24.34%
283.6
-1.71 (-0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners80.12%
Inst Owner Change2.16%
Ins Owners0.15%
Ins Owner Change0.31%
Market Cap299.14B
Revenue(TTM)43.95B
Net Income(TTM)8.06B
Analysts81.48
Price Target345.22 (21.73%)
Short Float %1.22%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)-1.08%
PT rev (3m)12.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.34%
EPS NY rev (1m)0.31%
EPS NY rev (3m)5.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.26 | ||
| Fwd PE | 38.36 | ||
| P/S | 6.81 | ||
| P/FCF | 46.41 | ||
| P/OCF | 39.6 | ||
| P/B | 15.9 | ||
| P/tB | 54.51 | ||
| EV/EBITDA | 34.35 |
EPS(TTM)6.13
EY2.16%
EPS(NY)7.39
Fwd EY2.61%
FCF(TTM)6.11
FCFY2.15%
OCF(TTM)7.16
OCFY2.53%
SpS41.66
BVpS17.83
TBVpS5.2
PEG (NY)1.07
PEG (5Y)N/A
Graham Number49.6
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 | 3.15 |
F-Score6
WACC9.72%
ROIC/WACC0.78
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 Y43.1%
EPS Next 2Y28.31%
EPS Next 3Y24.34%
EPS Next 5Y19.52%
Revenue 1Y (TTM)17.68%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%26.41%
Revenue Next Year20.04%
Revenue Next 2Y15.8%
Revenue Next 3Y13.7%
Revenue Next 5Y11.59%
EBIT growth 1Y63.06%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year45.58%
EBIT Next 3Y22.71%
EBIT Next 5Y19.74%
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%.