GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
NASDAQ:GEHC - Nasdaq - US36266G1076 - Common Stock - Currency: USD
GEHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 187 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
GEHC had positive earnings in the past year.
GEHC had a positive operating cash flow in the past year.
In the past 5 years GEHC has always been profitable.
GEHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GEHC has a Return On Assets of 6.50%. This is amongst the best in the industry. GEHC outperforms 87.70% of its industry peers.
GEHC has a Return On Equity of 23.76%. This is amongst the best in the industry. GEHC outperforms 95.72% of its industry peers.
With an excellent Return On Invested Capital value of 8.50%, GEHC belongs to the best of the industry, outperforming 89.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GEHC is in line with the industry average of 7.89%.
The 3 year average ROIC (8.36%) for GEHC is below the current ROIC(8.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 23.76% | ||
| ROIC | 8.5% |
ROA(3y)5.75%
ROA(5y)16.59%
ROE(3y)21.16%
ROE(5y)34.2%
ROIC(3y)8.36%
ROIC(5y)9.41%
1.3 Margins
GEHC has a better Profit Margin (11.03%) than 86.10% of its industry peers.
GEHC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.71%, GEHC belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Operating Margin of GEHC has remained more or less at the same level.
GEHC has a Gross Margin of 41.99%. This is in the lower half of the industry: GEHC underperforms 64.71% of its industry peers.
GEHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.71% | ||
| PM (TTM) | 11.03% | ||
| GM | 41.99% |
OM growth 3Y-5.66%
OM growth 5Y0.88%
PM growth 3Y-7.45%
PM growth 5Y2.03%
GM growth 3Y0.74%
GM growth 5Y1.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GEHC is still creating some value.
GEHC has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, GEHC has an improved debt to assets ratio.
2.2 Solvency
GEHC has an Altman-Z score of 1.84. This is not the best score and indicates that GEHC is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.84, GEHC perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
GEHC has a debt to FCF ratio of 6.40. This is a slightly negative value and a sign of low solvency as GEHC would need 6.40 years to pay back of all of its debts.
GEHC has a Debt to FCF ratio of 6.40. This is in the better half of the industry: GEHC outperforms 78.61% of its industry peers.
GEHC has a Debt/Equity ratio of 0.74. This is a neutral value indicating GEHC is somewhat dependend on debt financing.
The Debt to Equity ratio of GEHC (0.74) is worse than 71.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.4 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.05
WACC8.08%
2.3 Liquidity
GEHC has a Current Ratio of 0.98. This is a bad value and indicates that GEHC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of GEHC (0.98) is worse than 90.37% of its industry peers.
GEHC has a Quick Ratio of 0.98. This is a bad value and indicates that GEHC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.76, GEHC is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
GEHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.29%, which is quite good.
The Earnings Per Share has been growing slightly by 5.32% on average over the past years.
GEHC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.55%.
The Revenue has been growing slightly by 3.41% on average over the past years.
EPS 1Y (TTM)15.29%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%12.22%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%2.73%
3.2 Future
The Earnings Per Share is expected to grow by 5.34% on average over the next years.
GEHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.52% yearly.
EPS Next Y-7.45%
EPS Next 2Y2.04%
EPS Next 3Y5.76%
EPS Next 5Y5.34%
Revenue Next Year3.01%
Revenue Next 2Y3.85%
Revenue Next 3Y4.13%
Revenue Next 5Y3.52%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
GEHC is valuated correctly with a Price/Earnings ratio of 16.18.
GEHC's Price/Earnings ratio is rather cheap when compared to the industry. GEHC is cheaper than 83.96% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.51. GEHC is valued slightly cheaper when compared to this.
GEHC is valuated correctly with a Price/Forward Earnings ratio of 15.92.
82.89% of the companies in the same industry are more expensive than GEHC, based on the Price/Forward Earnings ratio.
GEHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 15.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GEHC indicates a rather cheap valuation: GEHC is cheaper than 84.49% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GEHC is valued cheaply inside the industry as 85.03% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.81 | ||
| EV/EBITDA | 12.32 |
4.3 Compensation for Growth
The excellent profitability rating of GEHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.04
EPS Next 2Y2.04%
EPS Next 3Y5.76%
5. Dividend
5.1 Amount
GEHC has a yearly dividend return of 0.18%, which is pretty low.
GEHC's Dividend Yield is rather good when compared to the industry average which is at 1.75. GEHC pays more dividend than 90.37% of the companies in the same industry.
With a Dividend Yield of 0.18, GEHC pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
5.2 History
GEHC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GEHC pays out 2.61% of its income as dividend. This is a sustainable payout ratio.
DP2.61%
EPS Next 2Y2.04%
EPS Next 3Y5.76%
74.45
-0.68 (-0.91%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.59%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change0.44%
Market Cap34.09B
Analysts80.77
Price Target88.82 (19.3%)
Short Float %1.72%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.46%
Min EPS beat(2)8.42%
Max EPS beat(2)12.49%
EPS beat(4)4
Avg EPS beat(4)6.81%
Min EPS beat(4)0.18%
Max EPS beat(4)12.49%
EPS beat(8)7
Avg EPS beat(8)5.57%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)0.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)0.42%
Revenue beat(8)2
Avg Revenue beat(8)-1.79%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.07%
PT rev (3m)-13.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.96%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-13.16%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 15.92 | ||
| P/S | 1.72 | ||
| P/FCF | 24.81 | ||
| P/OCF | 19.13 | ||
| P/B | 3.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.32 |
EPS(TTM)4.6
EY6.18%
EPS(NY)4.68
Fwd EY6.28%
FCF(TTM)3
FCFY4.03%
OCF(TTM)3.89
OCFY5.23%
SpS43.24
BVpS20.06
TBVpS-11.85
PEG (NY)N/A
PEG (5Y)3.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 23.76% | ||
| ROCE | 11.49% | ||
| ROIC | 8.5% | ||
| ROICexc | 9.49% | ||
| ROICexgc | 30.64% | ||
| OM | 13.71% | ||
| PM (TTM) | 11.03% | ||
| GM | 41.99% | ||
| FCFM | 6.94% |
ROA(3y)5.75%
ROA(5y)16.59%
ROE(3y)21.16%
ROE(5y)34.2%
ROIC(3y)8.36%
ROIC(5y)9.41%
ROICexc(3y)9.28%
ROICexc(5y)10.16%
ROICexgc(3y)32.48%
ROICexgc(5y)41.69%
ROCE(3y)11.31%
ROCE(5y)12.72%
ROICexcg growth 3Y-14.77%
ROICexcg growth 5YN/A
ROICexc growth 3Y-4.79%
ROICexc growth 5YN/A
OM growth 3Y-5.66%
OM growth 5Y0.88%
PM growth 3Y-7.45%
PM growth 5Y2.03%
GM growth 3Y0.74%
GM growth 5Y1.16%
F-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.4 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 71.83% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 4.74 | ||
| Cash Conversion | 54.3% | ||
| Profit Quality | 62.94% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.84 |
F-Score5
WACC8.08%
ROIC/WACC1.05
Cap/Depr(3y)60.52%
Cap/Depr(5y)52.47%
Cap/Sales(3y)1.9%
Cap/Sales(5y)1.73%
Profit Quality(3y)98.54%
Profit Quality(5y)74.63%
High Growth Momentum
Growth
EPS 1Y (TTM)15.29%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%12.22%
EPS Next Y-7.45%
EPS Next 2Y2.04%
EPS Next 3Y5.76%
EPS Next 5Y5.34%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%2.73%
Revenue Next Year3.01%
Revenue Next 2Y3.85%
Revenue Next 3Y4.13%
Revenue Next 5Y3.52%
EBIT growth 1Y12.33%
EBIT growth 3Y-2.07%
EBIT growth 5Y4.33%
EBIT Next Year11.86%
EBIT Next 3Y9.57%
EBIT Next 5Y8.87%
FCF growth 1Y-9.57%
FCF growth 3Y4.48%
FCF growth 5Y0.56%
OCF growth 1Y-7.14%
OCF growth 3Y6.68%
OCF growth 5Y1.2%