GE

General ElectricNYSE:GE Stock Report

Market Cap

US$106.3b

7D

-3.5%

1Y

93.6%

Updated

22 Sep, 2021

Data

Company Financials +
GE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends0/6

GE Overview

General Electric Company operates as a high-tech industrial company worldwide.

Rewards

Earnings are forecast to grow 81.39% per year

Risk Analysis

No risks detected for GE from our risk checks.

General Electric Competitors

Price History & Performance

Summary of all time highs, changes and price drops for General Electric
Historical stock prices
Current Share PriceUS$96.82
52 Week HighUS$48.00
52 Week LowUS$115.32
Beta1.08
1 Month Change-3.23%
3 Month Change-6.54%
1 Year Change93.64%
3 Year Change7.39%
5 Year Change-59.50%
Change since IPO117.57%

Recent News & Updates

Sep 08

Was General Electric's Reverse Split A Good Or Bad Idea?

GE's reverse stock split means share price will no longer be a factor for investors deciding between it and other industrials. The reverse split has few practical implications, but it does mark a GE that is unrecognizable compared to 5 years ago. GE is undervalued based on a sum of the parts analysis by up to $100 billion. Improved orders and profit margins, particularly in the power segment are going unappreciated by Wall Street.

Aug 23

General Electric Company: The Lost Decade And The Next One

General Electric Company investors have been disappointed in the past decade through a combination of earnings decline, balance sheet deterioration, and dividend cuts. This article reviews the issues GE had during the past and provides an outlook for the next one. And the results suggest signs of recovery and some decent returns to be expected in the next decade.

Aug 10

General Electric: Emerging From 'The Dark Ages'

After a long period of stagnation, General Electric might finally be emerging from a long and dark period characterized by extreme declines in share prices. General Electric’s second quarter earnings results might not have been exceptionally impressive but they do reveal signs of stability that strengthen the argument for holding long positions in the stock. If a truly bullish turnaround is developing, GE might have tremendous upside potential given the extent of the drop that characterized the stock for most of the last two decades.

Jul 29
At US$13.13, Is General Electric Company (NYSE:GE) Worth Looking At Closely?

At US$13.13, Is General Electric Company (NYSE:GE) Worth Looking At Closely?

Today we're going to take a look at the well-established General Electric Company ( NYSE:GE ). The company's stock saw...

Shareholder Returns

GEUS IndustrialsUS Market
7D-3.5%-2.6%-1.8%
1Y93.6%33.6%31.5%

Return vs Industry: GE exceeded the US Industrials industry which returned 35.5% over the past year.

Return vs Market: GE exceeded the US Market which returned 33% over the past year.

Price Volatility

Is GE's price volatile compared to industry and market?
GE volatility
GE Beta1.08
Industry Beta1.08
Market Beta1

Stable Share Price: GE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1878174,000Larry Culphttps://www.ge.com

General Electric Company operates as a high-tech industrial company worldwide. The company’s Power segment offers heavy-duty and aeroderivative gas turbines for utilities, independent power producers, and industrial applications; maintenance, service, and upgrade solutions to plant assets and their operational lifecycle; steam power technology for fossil and nuclear applications, including boilers, generators, steam turbines, and air quality control systems; and advanced reactor technologies solutions comprising reactors, fuels, and support services for boiling water reactors. This segment also applies the science and systems of power conversion to provide motors, generators, automation, and control equipment; and drives for energy intensive industries, such as marine, oil and gas, mining, rail, metals, test systems, and water.

Valuation

Is General Electric undervalued compared to its fair value and its price relative to the market?

3.17x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GE ($96.82) is trading above our estimate of fair value ($77.92)

Significantly Below Fair Value: GE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GE is unprofitable, so we can't compare its PE Ratio to the US Industrials industry average.

PE vs Market: GE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GE is overvalued based on its PB Ratio (3.2x) compared to the US Industrials industry average (3.1x).


Future Growth

How is General Electric forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

81.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: GE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GE's is expected to become profitable in the next 3 years.

Revenue vs Market: GE's revenue (5.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: GE's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GE's Return on Equity is forecast to be high in 3 years time (21.5%)


Past Performance

How has General Electric performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GE is currently unprofitable.

Growing Profit Margin: GE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GE is unprofitable, and losses have increased over the past 5 years at a rate of 11.2% per year.

Accelerating Growth: Unable to compare GE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GE is unprofitable, making it difficult to compare its past year earnings growth to the Industrials industry (38.7%).


Return on Equity

High ROE: GE has a negative Return on Equity (0.23%), as it is currently unprofitable.


Financial Health

How is General Electric's financial position?


Financial Position Analysis

Short Term Liabilities: GE's short term assets ($102.4B) exceed its short term liabilities ($56.6B).

Long Term Liabilities: GE's short term assets ($102.4B) do not cover its long term liabilities ($145.9B).


Debt to Equity History and Analysis

Debt Level: GE's debt to equity ratio (181.3%) is considered high.

Reducing Debt: GE's debt to equity ratio has increased from 174.3% to 181.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GE is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 25.5% per year.


Dividend

What is General Electric current dividend yield, its reliability and sustainability?

0.33%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 22 2021Ex Dividend DateSep 24 2021Dividend Pay DateOct 25 202131 days from Ex DividendBuy in the next 1 day to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: GE's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: GE's dividend (0.33%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: GE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: GE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Larry Culp (58 yo)

2.92yrs

Tenure

US$73,192,032

Compensation

Mr. H. Lawrence Culp, Jr., also known as Larry, has been the Chairman and Chief Executive Officer of General Electric Company since October 1, 2018. He joined GE in April 2018 as an Independent Director. P...


CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD73.19M) is above average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Larry's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: GE's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: GE's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

General Electric Company's employee growth, exchange listings and data sources


Key Information

  • Name: General Electric Company
  • Ticker: GE
  • Exchange: NYSE
  • Founded: 1878
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: US$106.269b
  • Shares outstanding: 1.10b
  • Website: https://www.ge.com

Number of Employees


Location

  • General Electric Company
  • 5 Necco Street
  • Boston
  • Massachusetts
  • 2210
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:10
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.