GE Aerospace (GNE.PA) Stock Fundamental Analysis
Europe - 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 46 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of GNE get a neutral evaluation. Nothing too spectacular is happening here. GNE is valued expensive and it does not seem to be growing.
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.
In the past 5 years GNE always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.78%, GNE perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.03%, GNE belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
GNE has a Return On Invested Capital of 4.02%. This is in the lower half of the industry: GNE underperforms 73.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GNE is significantly below the industry average of 9.09%.
The last Return On Invested Capital (4.02%) for GNE is above the 3 year average (1.62%), which is a sign of increasing profitability.
| 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
GNE has a better Profit Margin (8.49%) than 76.32% of its industry peers.
In the last couple of years the Profit Margin of GNE has grown nicely.
GNE's Operating Margin of 8.57% is in line compared to the rest of the industry. GNE outperforms 57.89% of 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.
In the last couple of years the Gross Margin of GNE has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GNE is destroying value.
Compared to 1 year ago, GNE has about the same amount of shares outstanding.
GNE has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, GNE has an improved debt to assets ratio.
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.
GNE has a Altman-Z score of 2.57. This is in the better half of the industry: GNE outperforms 68.42% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.62, GNE is doing good in the industry, outperforming 71.05% of the companies in the same industry.
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
A Current Ratio of 1.14 indicates that GNE should not have too much problems paying its short term obligations.
GNE has a Current ratio of 1.14. This is in the lower half of the industry: GNE underperforms 63.16% of its industry peers.
GNE has a Quick Ratio of 1.14. This is a bad value and indicates that GNE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GNE (0.85) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
GNE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.63%, which is quite impressive.
Measured over the past years, GNE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.91% on average per year.
Looking at the last year, GNE shows a very negative growth in Revenue. The Revenue has decreased by -18.72% in the last year.
GNE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.87% yearly.
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
Based on estimates for the next years, GNE will show a decrease in Revenue. The Revenue will decrease by -6.44% on average per year.
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.
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
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.
The average S&P500 Price/Earnings ratio is at 27.30. GNE is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 32.73, GNE can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, GNE is valued a bit more expensive than 76.32% of the companies in the same industry.
GNE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.01 | ||
| Fwd PE | 32.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNE indicates a slightly more expensive valuation: GNE is more expensive than 78.95% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GNE is on the same level as its industry peers.
| 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.
GNE's earnings are expected to grow with 30.47% in the coming years. This may justify a more expensive valuation.
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 1.16.
With a Dividend Yield of 0.66, GNE pays less dividend than the S&P500 average, which is at 2.38.
| 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
GNE pays out 13.60% of its income as dividend. This is a sustainable payout ratio.
DP13.6%
EPS Next 2Y36.38%
EPS Next 3Y30.47%
EPA:GNE (7/24/2024, 7:00:00 PM)
158
-1 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap172.95B
Analysts84.62
Price Target171.03 (8.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.54
Dividend Growth(5Y)-33.36%
DP13.6%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.85%
Min EPS beat(2)18.24%
Max EPS beat(2)21.46%
EPS beat(4)4
Avg EPS beat(4)22.98%
Min EPS beat(4)10.12%
Max EPS beat(4)42.1%
EPS beat(8)8
Avg EPS beat(8)36.13%
EPS beat(12)12
Avg EPS beat(12)37.45%
EPS beat(16)15
Avg EPS beat(16)51.43%
Revenue beat(2)0
Avg Revenue beat(2)-4.18%
Min Revenue beat(2)-5.66%
Max Revenue beat(2)-2.71%
Revenue beat(4)2
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-5.66%
Max Revenue beat(4)8.27%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)4
Avg Revenue beat(12)-5.83%
Revenue beat(16)4
Avg Revenue beat(16)-5.51%
PT rev (1m)-3.24%
PT rev (3m)6.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)0%
EPS NY rev (3m)3.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.01 | ||
| Fwd PE | 32.73 | ||
| P/S | 3.4 | ||
| P/FCF | 34.31 | ||
| P/OCF | 27.16 | ||
| P/B | 10.03 | ||
| P/tB | 34.91 | ||
| EV/EBITDA | 29.61 |
EPS(TTM)3.59
EY2.27%
EPS(NY)4.83
Fwd EY3.06%
FCF(TTM)4.6
FCFY2.91%
OCF(TTM)5.82
OCFY3.68%
SpS46.42
BVpS15.75
TBVpS4.53
PEG (NY)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 25.03% | ||
| ROCE | 5.19% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.85% | ||
| ROICexgc | 5.89% | ||
| OM | 8.57% | ||
| PM (TTM) | 8.49% | ||
| GM | 27.76% | ||
| FCFM | 9.92% |
ROA(3y)0.62%
ROA(5y)0.36%
ROE(3y)5.52%
ROE(5y)2.32%
ROIC(3y)1.62%
ROIC(5y)N/A
ROICexc(3y)1.96%
ROICexc(5y)N/A
ROICexgc(3y)2.44%
ROICexgc(5y)N/A
ROCE(3y)2.1%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.73%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.81%
OM growth 3YN/A
OM growth 5Y-7.03%
PM growth 3Y26.48%
PM growth 5YN/A
GM growth 3Y4%
GM growth 5Y1.27%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 3.62 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 87.58% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.5% | ||
| Profit Quality | 116.82% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.57 |
F-Score6
WACC8.11%
ROIC/WACC0.5
Cap/Depr(3y)54.61%
Cap/Depr(5y)56.86%
Cap/Sales(3y)2.04%
Cap/Sales(5y)2.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.63%
EPS 3Y106.06%
EPS 5Y-11.91%
EPS Q2Q%76.47%
EPS Next Y49.74%
EPS Next 2Y36.38%
EPS Next 3Y30.47%
EPS Next 5Y22.91%
Revenue 1Y (TTM)-18.72%
Revenue growth 3Y-3.59%
Revenue growth 5Y-6.87%
Sales Q2Q%-50.76%
Revenue Next Year-43.97%
Revenue Next 2Y-20.62%
Revenue Next 3Y-11.38%
Revenue Next 5Y-6.44%
EBIT growth 1Y95.63%
EBIT growth 3YN/A
EBIT growth 5Y-13.42%
EBIT Next Year40.12%
EBIT Next 3Y22.24%
EBIT Next 5Y16.48%
FCF growth 1Y62.47%
FCF growth 3Y24.97%
FCF growth 5YN/A
OCF growth 1Y44.06%
OCF growth 3Y13.24%
OCF growth 5Y0.79%