GENERAL ELECTRIC (GE) Stock Fundamental Analysis
NYSE:GE - US3696041033 - Common Stock
266.53 USD
-2.18 (-0.81%)
266.93 USD
+0.4 (+0.15%)
Taking everything into account, GE scores 5 out of 10 in our fundamental rating. GE was compared to 68 industry peers in the Aerospace & Defense industry. While GE belongs to the best of the industry regarding profitability, 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
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.
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 76.47% of its industry peers.
Looking at the Return On Equity, with a value of 40.54%, GE belongs to the top of the industry, outperforming 98.53% of the companies in the same industry.
The Return On Invested Capital of GE (6.98%) is better than 63.24% 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 8.59%.
The last Return On Invested Capital (6.98%) for GE is above the 3 year average (3.20%), which is a sign of increasing profitability.
| 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
GE's Profit Margin of 18.64% is amongst the best of the industry. GE outperforms 98.53% of its industry peers.
GE's Operating Margin of 16.74% is amongst the best of the industry. GE outperforms 89.71% of its industry peers.
GE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.97%, GE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GE is destroying value.
GE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GE has less shares outstanding
GE has a worse debt/assets ratio than last year.
2.2 Solvency
GE has an Altman-Z score of 3.06. This indicates that GE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.06, GE is in line with its industry, outperforming 47.06% of the companies in the same industry.
GE has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as GE would need 3.44 years to pay back of all of its debts.
GE has a better Debt to FCF ratio (3.44) than 83.82% of its industry peers.
GE has a Debt/Equity ratio of 0.89. This is a neutral value indicating GE is somewhat dependend on debt financing.
The Debt to Equity ratio of GE (0.89) is worse than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.71
WACC9.89%
2.3 Liquidity
A Current Ratio of 1.04 indicates that GE should not have too much problems paying its short term obligations.
GE has a Current ratio of 1.04. This is amonst the worse of the industry: GE underperforms 83.82% of its industry peers.
GE has a Quick Ratio of 1.04. This is a bad value and indicates that GE is not financially healthy enough and could expect problems in meeting its short term obligations.
GE has a Quick ratio of 0.73. This is in the lower half of the industry: GE underperforms 79.41% 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.
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 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 17.83% 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 Y35.45%
EPS Next 2Y26.22%
EPS Next 3Y22.49%
EPS Next 5Y17.83%
Revenue Next Year17.8%
Revenue Next 2Y14.5%
Revenue Next 3Y12.78%
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.
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 47.43 indicates a quite expensive valuation of GE.
GE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.24, GE is valued quite expensively.
With a Price/Forward Earnings ratio of 37.26, GE can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as GE.
The average S&P500 Price/Forward Earnings ratio is at 35.82. GE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.43 | ||
| Fwd PE | 37.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GE.
Based on the Price/Free Cash Flow ratio, GE is valued a bit cheaper than 67.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.45 | ||
| EV/EBITDA | 35.26 |
4.3 Compensation for Growth
The 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 22.49% in the coming years.
PEG (NY)1.34
PEG (5Y)N/A
EPS Next 2Y26.22%
EPS Next 3Y22.49%
5. Dividend
5.1 Amount
GE has a yearly dividend return of 0.54%, which is pretty low.
GE's Dividend Yield is a higher than the industry average which is at 1.18.
With a Dividend Yield of 0.54, GE pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of GE grows each year by 9.39%, which is quite nice.
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
16.78% 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.
DP16.78%
EPS Next 2Y26.22%
EPS Next 3Y22.49%
266.53
-2.18 (-0.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change-3.78%
Ins Owners0.15%
Ins Owner Change0.53%
Market Cap282.64B
Analysts82.86
Price Target300.98 (12.93%)
Short Float %1.2%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)13%
PT rev (3m)31.18%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)6.05%
EPS NY rev (3m)6.66%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)2.44%
Revenue NY rev (1m)3.18%
Revenue NY rev (3m)3.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.43 | ||
| Fwd PE | 37.26 | ||
| P/S | 6.79 | ||
| P/FCF | 51.45 | ||
| P/OCF | 43.08 | ||
| P/B | 14.77 | ||
| P/tB | 48.79 | ||
| EV/EBITDA | 35.26 |
EPS(TTM)5.62
EY2.11%
EPS(NY)7.15
Fwd EY2.68%
FCF(TTM)5.18
FCFY1.94%
OCF(TTM)6.19
OCFY2.32%
SpS39.24
BVpS18.04
TBVpS5.46
PEG (NY)1.34
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 | 3.06 |
F-Score7
WACC9.89%
ROIC/WACC0.71
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 Y35.45%
EPS Next 2Y26.22%
EPS Next 3Y22.49%
EPS Next 5Y17.83%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%23.45%
Revenue Next Year17.8%
Revenue Next 2Y14.5%
Revenue Next 3Y12.78%
Revenue Next 5Y10.41%
EBIT growth 1Y54.62%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year39.35%
EBIT Next 3Y20.78%
EBIT Next 5Y13.76%
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%