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GE HEALTHCARE TECHNOLOGY (GEHC) Stock Fundamental Analysis

NASDAQ:GEHC - Nasdaq - US36266G1076 - Common Stock - Currency: USD

69.745  -2.1 (-2.93%)

Fundamental Rating

5

Overall GEHC gets a fundamental rating of 5 out of 10. We evaluated GEHC against 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year GEHC was profitable.
GEHC had a positive operating cash flow in the past year.
In the past 5 years GEHC has always been profitable.
In the past 5 years GEHC always reported a positive cash flow from operatings.
GEHC Yearly Net Income VS EBIT VS OCF VS FCFGEHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

GEHC has a better Return On Assets (6.50%) than 87.30% of its industry peers.
GEHC has a Return On Equity of 23.76%. This is amongst the best in the industry. GEHC outperforms 96.30% of its industry peers.
GEHC has a Return On Invested Capital of 8.50%. This is amongst the best in the industry. GEHC outperforms 89.42% of its industry peers.
GEHC had an Average Return On Invested Capital over the past 3 years of 8.36%. This is in line with the industry average of 7.87%.
The last Return On Invested Capital (8.50%) for GEHC is above the 3 year average (8.36%), which is a sign of increasing profitability.
Industry RankSector 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%
GEHC Yearly ROA, ROE, ROICGEHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 20 40 60 80

1.3 Margins

The Profit Margin of GEHC (11.03%) is better than 85.71% of its industry peers.
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 82.01% of its industry peers.
In the last couple of years the Operating Margin of GEHC has remained more or less at the same level.
The Gross Margin of GEHC (41.99%) is worse than 66.67% of its industry peers.
GEHC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
GEHC Yearly Profit, Operating, Gross MarginsGEHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 20 40 60 80

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3

2. Health

2.1 Basic Checks

GEHC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GEHC has more shares outstanding
The debt/assets ratio for GEHC has been reduced compared to a year ago.
GEHC Yearly Shares OutstandingGEHC Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 100M 200M 300M 400M
GEHC Yearly Total Debt VS Total AssetsGEHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

GEHC has an Altman-Z score of 1.82. 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.
The Altman-Z score of GEHC (1.82) is comparable to the rest of the industry.
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's Debt to FCF ratio of 6.40 is fine compared to the rest of the industry. GEHC outperforms 78.84% 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.
GEHC has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: GEHC underperforms 69.84% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 6.4
Altman-Z 1.82
ROIC/WACC1.05
WACC8.08%
GEHC Yearly LT Debt VS Equity VS FCFGEHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 5B 10B 15B

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.
GEHC has a Current ratio of 0.98. This is amonst the worse of the industry: GEHC underperforms 89.42% of its industry peers.
A Quick Ratio of 0.76 indicates that GEHC may have some problems paying its short term obligations.
The Quick ratio of GEHC (0.76) is worse than 87.83% of its industry peers.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.76
GEHC Yearly Current Assets VS Current LiabilitesGEHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 2B 4B 6B 8B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.29% over the past year.
The Earnings Per Share has been growing slightly by 5.32% on average over the past years.
The Revenue has been growing slightly by 1.55% in the past year.
GEHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.41% yearly.
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

Based on estimates for the next years, GEHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.83% on average per year.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y-7.95%
EPS Next 2Y1.82%
EPS Next 3Y5.67%
EPS Next 5Y8.83%
Revenue Next Year2.97%
Revenue Next 2Y3.83%
Revenue Next 3Y4.1%
Revenue Next 5Y4.2%

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 accelerating: in the next years the growth will be better than in the last years.
GEHC Yearly Revenue VS EstimatesGEHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B
GEHC Yearly EPS VS EstimatesGEHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.16 indicates a correct valuation of GEHC.
GEHC's Price/Earnings ratio is rather cheap when compared to the industry. GEHC is cheaper than 85.19% of the companies in the same industry.
GEHC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
GEHC is valuated correctly with a Price/Forward Earnings ratio of 14.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GEHC indicates a rather cheap valuation: GEHC is cheaper than 82.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, GEHC is valued a bit cheaper.
Industry RankSector Rank
PE 15.16
Fwd PE 14.98
GEHC Price Earnings VS Forward Price EarningsGEHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GEHC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GEHC indicates a rather cheap valuation: GEHC is cheaper than 83.60% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 23.24
EV/EBITDA 11.96
GEHC Per share dataGEHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30 40

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 2Y1.82%
EPS Next 3Y5.67%

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3

5. Dividend

5.1 Amount

GEHC has a yearly dividend return of 0.19%, which is pretty low.
In the last 3 months the price of GEHC has falen by -21.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
GEHC's Dividend Yield is rather good when compared to the industry average which is at 1.82. GEHC pays more dividend than 90.48% of the companies 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 RankSector 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
GEHC Yearly Dividends per shareGEHC Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.02 0.04 0.06 0.08 0.1

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 2Y1.82%
EPS Next 3Y5.67%
GEHC Yearly Income VS Free CF VS DividendGEHC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
GEHC Dividend Payout.GEHC Dividend Payout, showing the Payout Ratio.GEHC Dividend Payout.PayoutRetained Earnings

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GE HEALTHCARE TECHNOLOGY

NASDAQ:GEHC (5/21/2025, 3:38:07 PM)

69.745

-2.1 (-2.93%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)04-30 2025-04-30/bmo
Earnings (Next)N/A N/A
Inst Owners88.13%
Inst Owner Change-1.51%
Ins Owners0.18%
Ins Owner Change0.3%
Market Cap31.93B
Analysts80
Price Target89.97 (29%)
Short Float %1.46%
Short Ratio1.23
Dividend
Industry RankSector Rank
Dividend Yield 0.19%
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-25 2025-04-25 (0.035)
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)-12.28%
PT rev (3m)-9.02%
EPS NQ rev (1m)-15.82%
EPS NQ rev (3m)-16.23%
EPS NY rev (1m)-13.66%
EPS NY rev (3m)-13.56%
Revenue NQ rev (1m)1.32%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector Rank
PE 15.16
Fwd PE 14.98
P/S 1.61
P/FCF 23.24
P/OCF 17.92
P/B 3.48
P/tB N/A
EV/EBITDA 11.96
EPS(TTM)4.6
EY6.6%
EPS(NY)4.65
Fwd EY6.67%
FCF(TTM)3
FCFY4.3%
OCF(TTM)3.89
OCFY5.58%
SpS43.24
BVpS20.07
TBVpS-11.85
PEG (NY)N/A
PEG (5Y)2.85
Profitability
Industry RankSector 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 RankSector 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 1.82
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-7.95%
EPS Next 2Y1.82%
EPS Next 3Y5.67%
EPS Next 5Y8.83%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y3.81%
Revenue growth 5Y3.41%
Sales Q2Q%2.73%
Revenue Next Year2.97%
Revenue Next 2Y3.83%
Revenue Next 3Y4.1%
Revenue Next 5Y4.2%
EBIT growth 1Y12.33%
EBIT growth 3Y-2.07%
EBIT growth 5Y4.33%
EBIT Next Year25.22%
EBIT Next 3Y12.63%
EBIT Next 5Y9.53%
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%