GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis
USA - NASDAQ:GEHC - US36266G1076 - Common Stock
74.91 USD
+0.91 (+1.23%)
74.91 USD
0 (0%)
Taking everything into account, GEHC scores 5 out of 10 in our fundamental rating. GEHC was compared to 190 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 correct valuation and a medium growth rate.
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.
Each year in the past 5 years GEHC has been profitable.
In the past 5 years GEHC always reported a positive cash flow from operatings.
1.2 Ratios
GEHC has a better Return On Assets (6.31%) than 85.34% of its industry peers.
GEHC has a Return On Equity of 23.07%. This is amongst the best in the industry. GEHC outperforms 95.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.93%, GEHC belongs to the top of the industry, outperforming 86.39% 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 8.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 23.07% | ||
| ROIC | 7.93% |
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 11.22% is amongst the best of the industry. GEHC outperforms 84.82% 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 13.82%, GEHC belongs to the top of the industry, outperforming 81.15% of the companies in the same industry.
GEHC's Operating Margin has been stable in the last couple of years.
GEHC has a Gross Margin of 41.55%. This is in the lower half of the industry: GEHC underperforms 65.97% of its industry peers.
GEHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.82% | ||
| PM (TTM) | 11.22% | ||
| GM | 41.55% |
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.
The number of shares outstanding for GEHC has been increased compared to 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.
GEHC has a Altman-Z score (1.84) which is comparable to the rest of the industry.
GEHC has a debt to FCF ratio of 6.59. This is a slightly negative value and a sign of low solvency as GEHC would need 6.59 years to pay back of all of its debts.
GEHC has a better Debt to FCF ratio (6.59) than 77.49% of its industry peers.
GEHC has a Debt/Equity ratio of 0.86. This is a neutral value indicating GEHC is somewhat dependend on debt financing.
GEHC's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. GEHC is outperformed by 74.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.01
WACC7.85%
2.3 Liquidity
GEHC has a Current Ratio of 1.16. This is a normal value and indicates that GEHC is financially healthy and should not expect problems in meeting its short term obligations.
GEHC's Current ratio of 1.16 is on the low side compared to the rest of the industry. GEHC is outperformed by 83.25% of its industry peers.
A Quick Ratio of 0.93 indicates that GEHC may have some problems paying its short term obligations.
GEHC's Quick ratio of 0.93 is on the low side compared to the rest of the industry. GEHC is outperformed by 79.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.50% over the past year.
GEHC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.32% yearly.
The Revenue has been growing slightly by 2.30% 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)2.3%
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.
GEHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.43% yearly.
EPS Next Y2.72%
EPS Next 2Y5.97%
EPS Next 3Y7.93%
EPS Next 5Y5.34%
Revenue Next Year3.92%
Revenue Next 2Y4.29%
Revenue Next 3Y4.42%
Revenue Next 5Y3.43%
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.
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
With a Price/Earnings ratio of 16.08, 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 85.86% of the companies listed in the same industry.
GEHC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.86 indicates a correct valuation of GEHC.
86.39% 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 22.86. GEHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
GEHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GEHC is cheaper than 85.34% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GEHC is valued cheaper than 84.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.85 | ||
| EV/EBITDA | 12.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GEHC does not grow enough to justify the current Price/Earnings ratio.
GEHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.91
PEG (5Y)3.02
EPS Next 2Y5.97%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
GEHC has a yearly dividend return of 0.19%, which is pretty low.
Compared to an average industry Dividend Yield of 1.74, GEHC pays a better dividend. On top of this GEHC pays more dividend than 90.58% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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
2.63% of the earnings are spent on dividend by GEHC. This is a low number and sustainable payout ratio.
DP2.63%
EPS Next 2Y5.97%
EPS Next 3Y7.93%
74.91
+0.91 (+1.23%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.15%
Inst Owner Change-0.97%
Ins Owners0.28%
Ins Owner Change0.09%
Market Cap34.20B
Analysts81.48
Price Target88.75 (18.48%)
Short Float %1.62%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.63%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.83%
Min EPS beat(2)8.42%
Max EPS beat(2)13.24%
EPS beat(4)4
Avg EPS beat(4)10.08%
Min EPS beat(4)6.17%
Max EPS beat(4)13.24%
EPS beat(8)7
Avg EPS beat(8)6.77%
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)-0.33%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)0.42%
Revenue beat(8)2
Avg Revenue beat(8)-1.74%
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%
PT rev (3m)-0.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.39%
EPS NY rev (1m)0%
EPS NY rev (3m)11.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 14.86 | ||
| P/S | 1.71 | ||
| P/FCF | 21.85 | ||
| P/OCF | 17.14 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.26 |
EPS(TTM)4.66
EY6.22%
EPS(NY)5.04
Fwd EY6.73%
FCF(TTM)3.43
FCFY4.58%
OCF(TTM)4.37
OCFY5.83%
SpS43.73
BVpS21.27
TBVpS-10.79
PEG (NY)5.91
PEG (5Y)3.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 23.07% | ||
| ROCE | 10.72% | ||
| ROIC | 7.93% | ||
| ROICexc | 9.27% | ||
| ROICexgc | 27.67% | ||
| OM | 13.82% | ||
| PM (TTM) | 11.22% | ||
| GM | 41.55% | ||
| FCFM | 7.84% |
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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 6.59 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 75.84% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 5.15 | ||
| Cash Conversion | 59.96% | ||
| Profit Quality | 69.83% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.84 |
F-Score6
WACC7.85%
ROIC/WACC1.01
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 Y2.72%
EPS Next 2Y5.97%
EPS Next 3Y7.93%
EPS Next 5Y5.34%
Revenue 1Y (TTM)2.3%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%3.47%
Revenue Next Year3.92%
Revenue Next 2Y4.29%
Revenue Next 3Y4.42%
Revenue Next 5Y3.43%
EBIT growth 1Y12.47%
EBIT growth 3Y-2.07%
EBIT growth 5Y4.33%
EBIT Next Year13.59%
EBIT Next 3Y10.21%
EBIT Next 5Y8.87%
FCF growth 1Y-8%
FCF growth 3Y4.48%
FCF growth 5Y0.56%
OCF growth 1Y-3.39%
OCF growth 3Y6.68%
OCF growth 5Y1.2%