GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
NASDAQ:GEHC - Nasdaq - US36266G1076 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GEHC. GEHC was compared to 187 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year GEHC was profitable.
In the past year GEHC had a positive cash flow from operations.
In the past 5 years GEHC has always been profitable.
In the past 5 years GEHC always reported a positive cash flow from operatings.
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.
The Return On Equity of GEHC (23.76%) is better than 95.72% of its industry peers.
GEHC's Return On Invested Capital of 8.50% is amongst the best of the industry. GEHC outperforms 88.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GEHC is in line with the industry average of 8.24%.
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
With an excellent Profit Margin value of 11.03%, GEHC belongs to the best of the industry, outperforming 85.03% of the companies in the same industry.
In the last couple of years the Profit Margin of GEHC has grown nicely.
GEHC's Operating Margin of 13.71% is amongst the best of the industry. GEHC outperforms 81.28% 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's Gross Margin of 41.99% is on the low side compared to the rest of the industry. GEHC is outperformed by 65.24% 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.
The debt/assets ratio for GEHC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that GEHC is in the distress zone and has some risk of bankruptcy.
GEHC's Altman-Z score of 1.80 is in line compared to the rest of the industry. GEHC outperforms 57.22% of its industry peers.
The Debt to FCF ratio of GEHC is 6.40, which is on the high side as it means it would take GEHC, 6.40 years of fcf income to pay off all of its debts.
GEHC has a better Debt to FCF ratio (6.40) than 78.07% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that GEHC is somewhat dependend on debt financing.
GEHC has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: GEHC underperforms 72.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.4 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.08
WACC7.88%
2.3 Liquidity
A Current Ratio of 0.98 indicates that GEHC may have some problems paying its short term obligations.
GEHC has a worse Current ratio (0.98) than 90.37% of its industry peers.
A Quick Ratio of 0.76 indicates that GEHC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, GEHC is doing worse than 88.24% of the companies in the same industry.
| 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 14.50%, which is quite good.
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.
The Revenue has been growing slightly by 0.61% in the past year.
The Revenue has been growing slightly by 3.41% on average over the past years.
EPS 1Y (TTM)14.5%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%6%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%3.47%
3.2 Future
GEHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.34% yearly.
The Revenue is expected to grow by 3.52% on average over the next years.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 15.18, which indicates a correct valuation of GEHC.
Based on the Price/Earnings ratio, GEHC is valued cheaply inside the industry as 85.56% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GEHC to the average of the S&P500 Index (27.03), we can say GEHC is valued slightly cheaper.
GEHC is valuated correctly with a Price/Forward Earnings ratio of 15.13.
83.42% of the companies in the same industry are more expensive than GEHC, based on the Price/Forward Earnings ratio.
GEHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 15.13 |
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 86.10% of the companies listed in the same industry.
GEHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GEHC is cheaper than 85.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.57 | ||
| EV/EBITDA | 11.79 |
4.3 Compensation for Growth
The excellent profitability rating of GEHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.85
EPS Next 2Y2.04%
EPS Next 3Y5.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, 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 90.37% of the companies listed in the same industry.
With a Dividend Yield of 0.20, GEHC pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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
2.61% of the earnings are spent on dividend by GEHC. This is a low number and sustainable payout ratio.
DP2.61%
EPS Next 2Y2.04%
EPS Next 3Y5.76%
70.74
+0.1 (+0.14%)
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 Change-0.44%
Ins Owners0.28%
Ins Owner Change0.49%
Market Cap32.39B
Analysts81.48
Price Target88.69 (25.37%)
Short Float %1.45%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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)-0.14%
PT rev (3m)-10.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.96%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-13.2%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 15.13 | ||
| P/S | 1.64 | ||
| P/FCF | 23.57 | ||
| P/OCF | 18.18 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.79 |
EPS(TTM)4.66
EY6.59%
EPS(NY)4.68
Fwd EY6.61%
FCF(TTM)3
FCFY4.24%
OCF(TTM)3.89
OCFY5.5%
SpS43.24
BVpS20.06
TBVpS-11.85
PEG (NY)N/A
PEG (5Y)2.85
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 | 1.8 |
F-Score5
WACC7.88%
ROIC/WACC1.08
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)14.5%
EPS 3Y-4.21%
EPS 5Y5.32%
EPS Q2Q%6%
EPS Next Y-7.45%
EPS Next 2Y2.04%
EPS Next 3Y5.76%
EPS Next 5Y5.34%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%3.47%
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%