GENERAL ELECTRIC (GE) Stock Fundamental Analysis
USA - NYSE:GE - US3696041033 - Common Stock
297 USD
-2.45 (-0.82%)
297.39 USD
+0.39 (+0.13%)
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 has an excellent profitability rating, but there are some minor concerns on its financial health. GE is valied quite expensively at the moment, while it does show 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.
Of the past 5 years GE 4 years were profitable.
GE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.19%, GE is doing good in the industry, outperforming 75.36% of the companies in the same industry.
GE's Return On Equity of 40.54% is amongst the best of the industry. GE outperforms 98.55% of its industry peers.
GE has a better Return On Invested Capital (6.98%) than 63.77% 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 8.29%.
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
With an excellent Profit Margin value of 18.64%, GE belongs to the best of the industry, outperforming 98.55% of the companies in the same industry.
GE's Operating Margin of 16.74% is amongst the best of the industry. GE outperforms 88.41% 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 35.97%, GE is doing good in the industry, outperforming 75.36% 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 | 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
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
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 3.26 indicates that GE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.26, GE is in line with its industry, outperforming 47.83% 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.
With an excellent Debt to FCF ratio value of 3.44, GE belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
GE has a Debt/Equity ratio of 0.89. This is a neutral value indicating GE is somewhat dependend on debt financing.
GE's Debt to Equity ratio of 0.89 is on the low side compared to the rest of the industry. GE is outperformed by 71.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.72
WACC9.71%
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 worse Current ratio (1.04) than 84.06% 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'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
GE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.22%, 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.
Looking at the last year, GE shows a quite strong growth in Revenue. The Revenue has grown by 13.05% in the last year.
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)45.22%
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
GE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.03% yearly.
Based on estimates for the next years, GE will show a quite strong growth in Revenue. The Revenue will grow by 10.41% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 52.85 indicates a quite expensive valuation of GE.
Compared to the rest of the industry, the Price/Earnings ratio of GE is on the same level as its industry peers.
GE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.86.
Based on the Price/Forward Earnings ratio of 41.71, the valuation of GE can be described as expensive.
GE's Price/Forward Earnings is on the same level as the industry average.
GE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.85 | ||
| Fwd PE | 41.71 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GE.
GE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GE is 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.
GE has a very decent profitability rating, which 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
GE has a yearly dividend return of 0.48%, which is pretty low.
GE's Dividend Yield is a higher than the industry average which is at 1.44.
Compared to an average S&P500 Dividend Yield of 2.41, 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
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%