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GENERAL ELECTRIC (GE) Stock Fundamental Analysis

NYSE:GE - New York Stock Exchange, Inc. - US3696041033 - Common Stock - Currency: USD

198.43  +1.02 (+0.52%)

After market: 174.29 -24.14 (-12.17%)

Fundamental Rating

5

GE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. GE has an excellent profitability rating, but there are concerns on its financial health. GE is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

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.
Of the past 5 years GE 4 years were profitable.
In the past 5 years GE always reported a positive cash flow from operatings.
GE Yearly Net Income VS EBIT VS OCF VS FCFGE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B -20B

1.2 Ratios

GE's Return On Assets of 5.64% is fine compared to the rest of the industry. GE outperforms 70.77% of its industry peers.
GE has a Return On Equity of 36.34%. This is amongst the best in the industry. GE outperforms 98.46% of its industry peers.
GE's Return On Invested Capital of 6.47% is fine compared to the rest of the industry. GE outperforms 63.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GE is below the industry average of 7.86%.
The 3 year average ROIC (3.20%) for GE is below the current ROIC(6.47%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.64%
ROE 36.34%
ROIC 6.47%
ROA(3y)3.55%
ROA(5y)1.86%
ROE(3y)22.52%
ROE(5y)13.1%
ROIC(3y)3.2%
ROIC(5y)N/A
GE Yearly ROA, ROE, ROICGE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60

1.3 Margins

The Profit Margin of GE (17.63%) is better than 95.38% of its industry peers.
GE's Operating Margin of 16.35% is amongst the best of the industry. GE outperforms 87.69% of its industry peers.
In the last couple of years the Operating Margin of GE has grown nicely.
The Gross Margin of GE (35.83%) is better than 73.85% of its industry peers.
GE's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 16.35%
PM (TTM) 17.63%
GM 35.83%
OM growth 3Y396.9%
OM growth 5Y30.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.73%
GM growth 5Y6.44%
GE Yearly Profit, Operating, Gross MarginsGE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20 30

3

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.
GE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GE has a worse debt to assets ratio.
GE Yearly Shares OutstandingGE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
GE Yearly Total Debt VS Total AssetsGE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B

2.2 Solvency

GE has an Altman-Z score of 2.65. This is not the best score and indicates that GE is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of GE (2.65) is comparable to the rest of the industry.
GE has a debt to FCF ratio of 4.44. This is a neutral value as GE would need 4.44 years to pay back of all of its debts.
GE has a Debt to FCF ratio of 4.44. This is in the better half of the industry: GE outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that GE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.91, GE is not doing good in the industry: 70.77% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 4.44
Altman-Z 2.65
ROIC/WACC0.67
WACC9.71%
GE Yearly LT Debt VS Equity VS FCFGE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B

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.
The Current ratio of GE (1.08) is worse than 84.62% of its industry peers.
A Quick Ratio of 0.77 indicates that GE may have some problems paying its short term obligations.
GE has a Quick ratio of 0.77. This is amonst the worse of the industry: GE underperforms 81.54% of its industry peers.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.77
GE Yearly Current Assets VS Current LiabilitesGE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

5

3. Growth

3.1 Past

GE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.03%, which is quite impressive.
GE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.65% yearly.
The Revenue has grown by 8.81% in the past year. This is quite good.
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)54.03%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%81.71%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%-40.68%

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 15.13% on average per year.
GE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.14% yearly.
EPS Next Y24.51%
EPS Next 2Y21.49%
EPS Next 3Y19.63%
EPS Next 5Y15.13%
Revenue Next Year13.74%
Revenue Next 2Y12.11%
Revenue Next 3Y11.28%
Revenue Next 5Y9.14%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
GE Yearly Revenue VS EstimatesGE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 50B 100B 150B
GE Yearly EPS VS EstimatesGE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6 8 10

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 38.46, the valuation of GE can be described as expensive.
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 28.79, GE is valued a bit more expensive.
With a Price/Forward Earnings ratio of 29.94, GE can be considered very expensive at the moment.
66.15% of the companies in the same industry are more expensive than GE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GE to the average of the S&P500 Index (21.38), we can say GE is valued slightly more expensively.
Industry RankSector Rank
PE 38.46
Fwd PE 29.94
GE Price Earnings VS Forward Price EarningsGE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 67.69% of the companies in the same industry.
Industry RankSector Rank
P/FCF 48
EV/EBITDA 28.96
GE Per share dataGE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
A more expensive valuation may be justified as GE's earnings are expected to grow with 19.63% in the coming years.
PEG (NY)1.57
PEG (5Y)N/A
EPS Next 2Y21.49%
EPS Next 3Y19.63%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.74%, GE is not a good candidate for dividend investing.
GE's Dividend Yield is a higher than the industry average which is at 1.37.
With a Dividend Yield of 0.74, GE pays less dividend than the S&P500 average, which is at 2.47.
Industry RankSector Rank
Dividend Yield 0.74%

5.2 History

On average, the dividend of GE grows each year by 9.39%, which is quite nice.
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
GE Yearly Dividends per shareGE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

5.3 Sustainability

17.50% 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.
DP17.5%
EPS Next 2Y21.49%
EPS Next 3Y19.63%
GE Yearly Income VS Free CF VS DividendGE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B -20B
GE Dividend Payout.GE Dividend Payout, showing the Payout Ratio.GE Dividend Payout.PayoutRetained Earnings

GENERAL ELECTRIC

NYSE:GE (4/25/2025, 8:11:13 PM)

After market: 174.29 -24.14 (-12.17%)

198.43

+1.02 (+0.52%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)04-22 2025-04-22/bmo
Earnings (Next)07-21 2025-07-21/amc
Inst Owners80.08%
Inst Owner Change0.62%
Ins Owners0.17%
Ins Owner Change0.12%
Market Cap211.64B
Analysts83.45
Price Target228.38 (15.09%)
Short Float %1.21%
Short Ratio2.09
Dividend
Industry RankSector Rank
Dividend Yield 0.74%
Yearly Dividend0.93
Dividend Growth(5Y)9.39%
DP17.5%
Div Incr Years2
Div Non Decr Years4
Ex-Date03-10 2025-03-10 (0.36)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.75%
Min EPS beat(2)14.46%
Max EPS beat(2)23.03%
EPS beat(4)3
Avg EPS beat(4)13.5%
Min EPS beat(4)-1.74%
Max EPS beat(4)23.03%
EPS beat(8)7
Avg EPS beat(8)21.29%
EPS beat(12)11
Avg EPS beat(12)35.55%
EPS beat(16)15
Avg EPS beat(16)32.8%
Revenue beat(2)1
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)0.87%
Revenue beat(4)1
Avg Revenue beat(4)-2.87%
Min Revenue beat(4)-5.66%
Max Revenue beat(4)0.87%
Revenue beat(8)4
Avg Revenue beat(8)1.16%
Revenue beat(12)4
Avg Revenue beat(12)-19.58%
Revenue beat(16)4
Avg Revenue beat(16)-22.45%
PT rev (1m)0.49%
PT rev (3m)8.41%
EPS NQ rev (1m)1.13%
EPS NQ rev (3m)9.18%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)-1.05%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 38.46
Fwd PE 29.94
P/S 5.33
P/FCF 48
P/OCF 40.48
P/B 10.99
P/tB 33.71
EV/EBITDA 28.96
EPS(TTM)5.16
EY2.6%
EPS(NY)6.63
Fwd EY3.34%
FCF(TTM)4.13
FCFY2.08%
OCF(TTM)4.9
OCFY2.47%
SpS37.2
BVpS18.05
TBVpS5.89
PEG (NY)1.57
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.64%
ROE 36.34%
ROCE 7.28%
ROIC 6.47%
ROICexc 7.62%
ROICexgc 9.19%
OM 16.35%
PM (TTM) 17.63%
GM 35.83%
FCFM 11.11%
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-Score6
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 4.44
Debt/EBITDA 2.35
Cap/Depr 85.31%
Cap/Sales 2.06%
Interest Coverage 250
Cash Conversion 70.18%
Profit Quality 63.03%
Current Ratio 1.08
Quick Ratio 0.77
Altman-Z 2.65
F-Score6
WACC9.71%
ROIC/WACC0.67
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)54.03%
EPS 3Y28.22%
EPS 5Y-1.65%
EPS Q2Q%81.71%
EPS Next Y24.51%
EPS Next 2Y21.49%
EPS Next 3Y19.63%
EPS Next 5Y15.13%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y-11.83%
Revenue growth 5Y-15.57%
Sales Q2Q%-40.68%
Revenue Next Year13.74%
Revenue Next 2Y12.11%
Revenue Next 3Y11.28%
Revenue Next 5Y9.14%
EBIT growth 1Y61.62%
EBIT growth 3Y338.1%
EBIT growth 5Y10.46%
EBIT Next Year34.71%
EBIT Next 3Y19.28%
EBIT Next 5Y13.87%
FCF growth 1Y-8.05%
FCF growth 3Y23.11%
FCF growth 5Y-10.02%
OCF growth 1Y-15.88%
OCF growth 3Y12.23%
OCF growth 5Y-11.62%