GE Aerospace (GNE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:GNE - US3696043013 - Common Stock
158 EUR
-1 (-0.63%)
Overall GNE gets a fundamental rating of 4 out of 10. We evaluated GNE against 53 industry peers in the Aerospace & Defense industry. GNE has an average financial health and profitability rating. GNE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year GNE was profitable.
- In the past year GNE had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: GNE reported negative net income in multiple years.
- GNE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.78%, GNE is in line with its industry, outperforming 55.26% of the companies in the same industry.
- GNE's Return On Equity of 25.03% is amongst the best of the industry. GNE outperforms 86.84% of its industry peers.
- GNE's Return On Invested Capital of 4.02% is on the low side compared to the rest of the industry. GNE is outperformed by 73.68% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GNE is significantly below the industry average of 9.24%.
- The 3 year average ROIC (1.62%) for GNE is below the current ROIC(4.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 25.03% | ||
| ROIC | 4.02% |
ROA(3y)0.62%
ROA(5y)0.36%
ROE(3y)5.52%
ROE(5y)2.32%
ROIC(3y)1.62%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of GNE (8.49%) is better than 76.32% of its industry peers.
- GNE's Profit Margin has improved in the last couple of years.
- GNE has a Operating Margin (8.57%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of GNE has declined.
- The Gross Margin of GNE (27.76%) is comparable to the rest of the industry.
- GNE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.57% | ||
| PM (TTM) | 8.49% | ||
| GM | 27.76% |
OM growth 3YN/A
OM growth 5Y-7.03%
PM growth 3Y26.48%
PM growth 5YN/A
GM growth 3Y4%
GM growth 5Y1.27%
2. Health
2.1 Basic Checks
- GNE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for GNE remains at a similar level compared to 1 year ago.
- The debt/assets ratio for GNE has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.57 indicates that GNE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.57, GNE is doing good in the industry, outperforming 68.42% of the companies in the same industry.
- The Debt to FCF ratio of GNE is 3.62, which is a good value as it means it would take GNE, 3.62 years of fcf income to pay off all of its debts.
- GNE has a Debt to FCF ratio of 3.62. This is in the better half of the industry: GNE outperforms 71.05% of its industry peers.
- GNE has a Debt/Equity ratio of 0.97. This is a neutral value indicating GNE is somewhat dependend on debt financing.
- GNE has a Debt to Equity ratio of 0.97. This is in the lower half of the industry: GNE underperforms 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.5
WACC8.11%
2.3 Liquidity
- GNE has a Current Ratio of 1.14. This is a normal value and indicates that GNE is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.14, GNE is doing worse than 63.16% of the companies in the same industry.
- A Quick Ratio of 0.85 indicates that GNE may have some problems paying its short term obligations.
- GNE's Quick ratio of 0.85 is in line compared to the rest of the industry. GNE outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 31.63% over the past year.
- GNE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.91% yearly.
- The Revenue for GNE has decreased by -18.72% in the past year. This is quite bad
- The Revenue has been decreasing by -6.87% on average over the past years.
EPS 1Y (TTM)31.63%
EPS 3Y106.06%
EPS 5Y-11.91%
EPS Q2Q%76.47%
Revenue 1Y (TTM)-18.72%
Revenue growth 3Y-3.59%
Revenue growth 5Y-6.87%
Sales Q2Q%-50.76%
3.2 Future
- The Earnings Per Share is expected to grow by 22.91% on average over the next years. This is a very strong growth
- The Revenue is expected to decrease by -6.44% on average over the next years.
EPS Next Y49.74%
EPS Next 2Y36.38%
EPS Next 3Y30.47%
EPS Next 5Y22.91%
Revenue Next Year-43.97%
Revenue Next 2Y-20.62%
Revenue Next 3Y-11.38%
Revenue Next 5Y-6.44%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- Based on the Price/Earnings ratio of 44.01, the valuation of GNE can be described as expensive.
- GNE's Price/Earnings ratio is a bit more expensive when compared to the industry. GNE is more expensive than 76.32% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, GNE is valued quite expensively.
- The Price/Forward Earnings ratio is 32.73, which means the current valuation is very expensive for GNE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GNE indicates a slightly more expensive valuation: GNE is more expensive than 76.32% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. GNE is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.01 | ||
| Fwd PE | 32.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GNE is valued a bit more expensive than 78.95% of the companies in the same industry.
- GNE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.31 | ||
| EV/EBITDA | 29.61 |
4.3 Compensation for Growth
- GNE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as GNE's earnings are expected to grow with 30.47% in the coming years.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y36.38%
EPS Next 3Y30.47%
5. Dividend
5.1 Amount
- GNE has a yearly dividend return of 0.66%, which is pretty low.
- GNE's Dividend Yield is slightly below the industry average, which is at 0.74.
- Compared to an average S&P500 Dividend Yield of 1.82, GNE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
- The dividend of GNE decreases each year by -33.36%.
Dividend Growth(5Y)-33.36%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 13.60% of the earnings are spent on dividend by GNE. This is a low number and sustainable payout ratio.
DP13.6%
EPS Next 2Y36.38%
EPS Next 3Y30.47%
GE Aerospace / GNE.PA FAQ
What is the fundamental rating for GNE stock?
ChartMill assigns a fundamental rating of 4 / 10 to GNE.PA.
What is the valuation status of GE Aerospace (GNE.PA) stock?
ChartMill assigns a valuation rating of 2 / 10 to GE Aerospace (GNE.PA). This can be considered as Overvalued.
What is the profitability of GNE stock?
GE Aerospace (GNE.PA) has a profitability rating of 5 / 10.
What is the expected EPS growth for GE Aerospace (GNE.PA) stock?
The Earnings per Share (EPS) of GE Aerospace (GNE.PA) is expected to grow by 49.74% in the next year.
Is the dividend of GE Aerospace sustainable?
The dividend rating of GE Aerospace (GNE.PA) is 2 / 10 and the dividend payout ratio is 13.6%.