GE HEALTHCARE TECHNOLOGY (GEHC)
US36266G1076 - Common Stock
GEHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 193 industry peers in the Health Care Equipment & Supplies industry. While GEHC has a great profitability rating, there are quite some concerns on its financial health. GEHC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GEHC had positive earnings in the past year.
In the past year GEHC had a positive cash flow from operations.
GEHC had positive earnings in each of the past 5 years.
In the past 5 years GEHC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 4.87%, GEHC belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
GEHC has a better Return On Equity (21.19%) than 94.79% of its industry peers.
GEHC has a Return On Invested Capital of 7.56%. This is amongst the best in the industry. GEHC outperforms 85.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GEHC is in line with the industry average of 8.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 21.19% | ||
| ROIC | 7.56% |
ROA(3y)6.59%
ROA(5y)N/A
ROE(3y)17.8%
ROE(5y)N/A
ROIC(3y)9.03%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of GEHC (8.05%) is better than 81.25% of its industry peers.
GEHC's Profit Margin has declined in the last couple of years.
GEHC has a better Operating Margin (12.39%) than 81.25% of its industry peers.
In the last couple of years the Operating Margin of GEHC has declined.
GEHC has a worse Gross Margin (40.69%) than 64.58% of its industry peers.
In the last couple of years the Gross Margin of GEHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.39% | ||
| PM (TTM) | 8.05% | ||
| GM | 40.69% |
OM growth 3Y-7.72%
OM growth 5YN/A
PM growth 3Y-55.55%
PM growth 5YN/A
GM growth 3Y0.91%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GEHC is destroying value.
Compared to 1 year ago, GEHC has about the same amount of shares outstanding.
Compared to 1 year ago, GEHC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.84 indicates that GEHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GEHC has a Altman-Z score (1.84) which is in line with its industry peers.
GEHC has a debt to FCF ratio of 5.57. This is a neutral value as GEHC would need 5.57 years to pay back of all of its debts.
GEHC's Debt to FCF ratio of 5.57 is amongst the best of the industry. GEHC outperforms 80.73% of its industry peers.
A Debt/Equity ratio of 1.11 is on the high side and indicates that GEHC has dependencies on debt financing.
The Debt to Equity ratio of GEHC (1.11) is worse than 78.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.8
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.06 indicates that GEHC should not have too much problems paying its short term obligations.
GEHC has a worse Current ratio (1.06) than 91.67% of its industry peers.
GEHC has a Quick Ratio of 1.06. This is a bad value and indicates that GEHC is not financially healthy enough and could expect problems in meeting its short term obligations.
GEHC's Quick ratio of 0.83 is on the low side compared to the rest of the industry. GEHC is outperformed by 88.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
GEHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.69%.
GEHC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -53.65% yearly.
Looking at the last year, GEHC shows a very negative growth in Revenue. The Revenue has decreased by -15.42% in the last year.
The Revenue has been growing slightly by 4.44% on average over the past years.
EPS 1Y (TTM)-25.69%
EPS 3Y-53.65%
EPS 5YN/A
EPS growth Q2Q5.88%
Revenue 1Y (TTM)-15.42%
Revenue growth 3Y4.44%
Revenue growth 5YN/A
Revenue growth Q2Q-1.21%
3.2 Future
Based on estimates for the next years, GEHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.42% on average per year.
Based on estimates for the next years, GEHC will show a small growth in Revenue. The Revenue will grow by 6.37% on average per year.
EPS Next Y11.18%
EPS Next 2Y11.89%
EPS Next 3Y11.87%
EPS Next 5Y13.42%
Revenue Next Year4.54%
Revenue Next 2Y4.78%
Revenue Next 3Y5.02%
Revenue Next 5Y6.37%
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
A Price/Earnings ratio of 20.38 indicates a rather expensive valuation of GEHC.
Based on the Price/Earnings ratio, GEHC is valued cheaply inside the industry as 86.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.11, GEHC is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.49, which indicates a correct valuation of GEHC.
89.06% of the companies in the same industry are more expensive than GEHC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, GEHC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 16.49 |
4.2 Price Multiples
88.02% of the companies in the same industry are more expensive than GEHC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GEHC is valued cheaply inside the industry as 88.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.31 | ||
| EV/EBITDA | 14.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of GEHC may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)N/A
EPS Next 2Y11.89%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.15%, GEHC is not a good candidate for dividend investing.
GEHC's Dividend Yield is rather good when compared to the industry average which is at 1.67. GEHC pays more dividend than 90.63% of the companies in the same industry.
With a Dividend Yield of 0.15, GEHC pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
5.2 History
GEHC is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
3.50% of the earnings are spent on dividend by GEHC. This is a low number and sustainable payout ratio.
DP3.5%
EPS Next 2Y11.89%
EPS Next 3Y11.87%
GE HEALTHCARE TECHNOLOGY
NASDAQ:GEHC (5/8/2024, 1:33:09 PM)
81.315
-0.12 (-0.14%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 16.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 21.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.39% | ||
| PM (TTM) | 8.05% | ||
| GM | 40.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-25.69%
EPS 3Y-53.65%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.42%
Revenue growth 3Y4.44%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y