GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
USA - NASDAQ:GEHC - US36266G1076 - Common Stock
73.48 USD
+0.43 (+0.59%)
73.48 USD
0 (0%)
Taking everything into account, GEHC scores 5 out of 10 in our fundamental rating. GEHC was compared to 189 industry peers in the Health Care Equipment & Supplies industry. While GEHC belongs to the best of the industry regarding profitability, there are concerns on its financial health. GEHC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GEHC was profitable.
GEHC had a positive operating cash flow in the past year.
Each year in the past 5 years GEHC has been profitable.
GEHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GEHC's Return On Assets of 6.14% is amongst the best of the industry. GEHC outperforms 84.13% of its industry peers.
GEHC has a better Return On Equity (22.19%) than 94.71% of its industry peers.
GEHC has a better Return On Invested Capital (7.77%) than 84.66% 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 9.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 22.19% | ||
| ROIC | 7.77% |
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's Profit Margin of 10.95% is amongst the best of the industry. GEHC outperforms 84.66% of its industry peers.
GEHC's Profit Margin has improved in the last couple of years.
GEHC has a Operating Margin of 13.52%. This is amongst the best in the industry. GEHC outperforms 81.48% of its industry peers.
In the last couple of years the Operating Margin of GEHC has remained more or less at the same level.
GEHC has a worse Gross Margin (40.80%) than 65.61% 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 | 13.52% | ||
| PM (TTM) | 10.95% | ||
| GM | 40.8% |
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.
The debt/assets ratio for GEHC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.82 indicates that GEHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GEHC has a Altman-Z score (1.82) which is in line with its industry peers.
GEHC has a debt to FCF ratio of 7.38. This is a slightly negative value and a sign of low solvency as GEHC would need 7.38 years to pay back of all of its debts.
GEHC has a better Debt to FCF ratio (7.38) than 74.60% of its industry peers.
GEHC has a Debt/Equity ratio of 0.83. This is a neutral value indicating GEHC is somewhat dependend on debt financing.
The Debt to Equity ratio of GEHC (0.83) is worse than 73.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.99
WACC7.82%
2.3 Liquidity
A Current Ratio of 1.18 indicates that GEHC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.18, GEHC is doing worse than 83.07% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that GEHC may have some problems paying its short term obligations.
The Quick ratio of GEHC (0.95) is worse than 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.77% over the past year.
Measured over the past 5 years, GEHC shows a small growth in Earnings Per Share. The EPS has been growing by 5.32% on average per year.
GEHC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.52%.
GEHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.41% yearly.
EPS 1Y (TTM)8.77%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%-6.14%
Revenue 1Y (TTM)3.52%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%5.76%
3.2 Future
Based on estimates for the next years, GEHC will show a small growth in Earnings Per Share. The EPS will grow by 7.54% on average per year.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y3.36%
EPS Next 2Y5.96%
EPS Next 3Y7.85%
EPS Next 5Y7.54%
Revenue Next Year4.23%
Revenue Next 2Y4.34%
Revenue Next 3Y4.39%
Revenue Next 5Y3.87%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.01, GEHC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of GEHC indicates a rather cheap valuation: GEHC is cheaper than 84.66% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.28. GEHC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.58, which indicates a correct valuation of GEHC.
87.83% of the companies in the same industry are more expensive than GEHC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 33.61. GEHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 14.58 |
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 85.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GEHC is valued cheaper than 83.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.96 | ||
| EV/EBITDA | 11.99 |
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)4.76
PEG (5Y)3.01
EPS Next 2Y5.96%
EPS Next 3Y7.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, GEHC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.91, GEHC pays a better dividend. On top of this GEHC pays more dividend than 90.48% of the companies listed in the same industry.
With a Dividend Yield of 0.19, GEHC pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
GEHC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GEHC pays out 2.80% of its income as dividend. This is a sustainable payout ratio.
DP2.8%
EPS Next 2Y5.96%
EPS Next 3Y7.85%
73.48
+0.43 (+0.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners87.02%
Inst Owner Change0.49%
Ins Owners0.28%
Ins Owner Change0.09%
Market Cap33.55B
Revenue(TTM)20.25B
Net Income(TTM)2.22B
Analysts79.29
Price Target88.76 (20.79%)
Short Float %1.74%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.54%
Min EPS beat(2)-0.16%
Max EPS beat(2)13.24%
EPS beat(4)3
Avg EPS beat(4)8.5%
Min EPS beat(4)-0.16%
Max EPS beat(4)13.24%
EPS beat(8)6
Avg EPS beat(8)5.72%
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)0
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)-0.75%
Revenue beat(4)1
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)0.42%
Revenue beat(8)2
Avg Revenue beat(8)-1.64%
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)-0.64%
PT rev (3m)0.01%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)0.68%
EPS NY rev (3m)11.68%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 14.58 | ||
| P/S | 1.66 | ||
| P/FCF | 23.96 | ||
| P/OCF | 18.13 | ||
| P/B | 3.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.99 |
EPS(TTM)4.59
EY6.25%
EPS(NY)5.04
Fwd EY6.86%
FCF(TTM)3.07
FCFY4.17%
OCF(TTM)4.05
OCFY5.51%
SpS44.34
BVpS21.89
TBVpS-10.1
PEG (NY)4.76
PEG (5Y)3.01
Graham Number47.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 22.19% | ||
| ROCE | 10.51% | ||
| ROIC | 7.77% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 27.2% | ||
| OM | 13.52% | ||
| PM (TTM) | 10.95% | ||
| GM | 40.8% | ||
| FCFM | 6.91% |
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%
ROICexgc growth 3Y-14.77%
ROICexgc 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.38 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 78.67% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 55.91% | ||
| Profit Quality | 63.15% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.82 |
F-Score5
WACC7.82%
ROIC/WACC0.99
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)8.77%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%-6.14%
EPS Next Y3.36%
EPS Next 2Y5.96%
EPS Next 3Y7.85%
EPS Next 5Y7.54%
Revenue 1Y (TTM)3.52%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%5.76%
Revenue Next Year4.23%
Revenue Next 2Y4.34%
Revenue Next 3Y4.39%
Revenue Next 5Y3.87%
EBIT growth 1Y8.91%
EBIT growth 3Y-2.07%
EBIT growth 5Y4.33%
EBIT Next Year18.48%
EBIT Next 3Y10.61%
EBIT Next 5Y9.55%
FCF growth 1Y-18.75%
FCF growth 3Y4.48%
FCF growth 5Y0.56%
OCF growth 1Y-11.61%
OCF growth 3Y6.68%
OCF growth 5Y1.2%
GE HEALTHCARE TECHNOLOGY / GEHC FAQ
What is the fundamental rating for GEHC stock?
ChartMill assigns a fundamental rating of 5 / 10 to GEHC.
What is the valuation status of GE HEALTHCARE TECHNOLOGY (GEHC) stock?
ChartMill assigns a valuation rating of 6 / 10 to GE HEALTHCARE TECHNOLOGY (GEHC). This can be considered as Fairly Valued.
How profitable is GE HEALTHCARE TECHNOLOGY (GEHC) stock?
GE HEALTHCARE TECHNOLOGY (GEHC) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for GEHC stock?
The Price/Earnings (PE) ratio for GE HEALTHCARE TECHNOLOGY (GEHC) is 16.01 and the Price/Book (PB) ratio is 3.36.
Can you provide the financial health for GEHC stock?
The financial health rating of GE HEALTHCARE TECHNOLOGY (GEHC) is 3 / 10.