General Electric
Market Cap
US$91.1b
Last Updated
2020/11/29 00:26 UTC
Data Sources
Company Financials +
Executive Summary
General Electric Company operates as a high-tech industrial company in the United States, Europe, Asia, the Americas, the Middle East, and Africa. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 23.5% per year for the next 3 years
Snowflake Analysis
Fair value with imperfect balance sheet.
Similar Companies
Share Price & News
How has General Electric's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: GE's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
6.6%
GE
3.6%
US Industrials
2.8%
US Market
1 Year Return
-7.7%
GE
5.3%
US Industrials
20.9%
US Market
Return vs Industry: GE underperformed the US Industrials industry which returned 5.3% over the past year.
Return vs Market: GE underperformed the US Market which returned 20.7% over the past year.
Shareholder returns
| GE | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.6% | 3.6% | 2.8% |
| 30 Day | 41.1% | 22.9% | 11.1% |
| 90 Day | 57.3% | 20.3% | 6.5% |
| 1 Year | -7.3%-7.7% | 8.0%5.3% | 23.6%20.9% |
| 3 Year | -36.8%-41.8% | -1.5%-10.4% | 47.3%37.6% |
| 5 Year | -60.5%-65.9% | -0.3%-14.5% | 94.3%72.9% |
Long-Term Price Volatility Vs. Market
How volatile is General Electric's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
General Electric (NYSE:GE) Seems To Be Using A Lot Of Debt3 weeks ago | Simply Wall St
Is Now The Time To Look At Buying General Electric Company (NYSE:GE)?1 month ago | Simply Wall St
Is General Electric Company (NYSE:GE) Trading At A 36% Discount?Valuation
Is General Electric undervalued compared to its fair value and its price relative to the market?
12.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GE ($10.4) is trading below our estimate of fair value ($11.9)
Significantly Below Fair Value: GE is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: GE is good value based on its PE Ratio (25.9x) compared to the US Industrials industry average (26.9x).
PE vs Market: GE is poor value based on its PE Ratio (25.9x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: GE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: GE is good value based on its PB Ratio (2.7x) compared to the US Industrials industry average (3x).
Next Steps
Future Growth
How is General Electric forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
-23.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GE's earnings are forecast to decline over the next 3 years (-23.5% per year).
Earnings vs Market: GE's earnings are forecast to decline over the next 3 years (-23.5% per year).
High Growth Earnings: GE's earnings are forecast to decline over the next 3 years.
Revenue vs Market: GE's revenue (2.3% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: GE's revenue (2.3% 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 low in 3 years time (19%).
Next Steps
Past Performance
How has General Electric performed over the past 5 years?
-28.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GE has a large one-off gain of $6.6B impacting its September 30 2020 financial results.
Growing Profit Margin: GE became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: GE's earnings have declined by 28.9% per year over the past 5 years.
Accelerating Growth: GE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: GE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Industrials industry (-20.9%).
Return on Equity
High ROE: GE's Return on Equity (11.4%) is considered low.
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Financial Health
How is General Electric's financial position?
Financial Position Analysis
Short Term Liabilities: GE's short term assets ($87.0B) exceed its short term liabilities ($36.8B).
Long Term Liabilities: GE's short term assets ($87.0B) do not cover its long term liabilities ($182.7B).
Debt to Equity History and Analysis
Debt Level: GE's debt to equity ratio (226.2%) is considered high.
Reducing Debt: GE's debt to equity ratio has reduced from 241.9% to 226.2% over the past 5 years.
Debt Coverage: GE's debt is not well covered by operating cash flow (8.5%).
Interest Coverage: GE's interest payments on its debt are not well covered by EBIT (0.9x coverage).
Balance Sheet
Next Steps
Dividend
What is General Electric current dividend yield, its reliability and sustainability?
0.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GE's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: GE's dividend (0.38%) is low compared to the top 25% of dividend payers in the US market (4.08%).
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.
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Larry Culp (57 yo)
2.08yrs
Tenure
US$24,553,788
Compensation
Mr. H. Lawrence Culp, Jr., also known as Larry, is the Chairman and Chief Executive Officer of General Electric Company. He is General Electric Company's twelfth CEO and eleventh Chairman. He joined the Ge...
CEO Compensation Analysis
Compensation vs Market: Larry's total compensation ($USD24.55M) is above average for companies of similar size in the US market ($USD10.83M).
Compensation vs Earnings: Larry's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 2.08yrs | US$24.55m | 0.17% $ 157.3m | |
| Senior VP & Chief Human Resources Officer | 1.67yrs | US$13.84m | 0.0012% $ 1.1m | |
| Senior Vice President | 5.08yrs | US$10.52m | 0.0031% $ 2.9m | |
| Senior VP & CFO | 0.67yr | no data | no data | |
| VP, Controller & Chief Accounting Officer | 2.17yrs | no data | 0.0014% $ 1.3m | |
| Senior VP & Chief Technology Officer | 5.17yrs | no data | no data | |
| VP & Chief Information Officer | 0.75yr | no data | no data | |
| Vice President of Investor Communications | 1.83yrs | no data | no data | |
| Senior VP | 2.58yrs | US$13.52m | 0.0015% $ 1.4m | |
| Chief Marketing & Communications Officer | 1.83yrs | no data | no data | |
| Chief Communications Officer | 2.17yrs | no data | no data | |
| Chief Human Resource Officer | 0.75yr | no data | no data |
2.0yrs
Average Tenure
57yo
Average Age
Experienced Management: GE's management team is not considered experienced ( 2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 2.08yrs | US$24.55m | 0.17% $ 157.3m | |
| Senior VP | no data | no data | no data | |
| Lead Independent Director | 2.08yrs | US$366.23k | 0.00063% $ 573.9k | |
| Independent Director | 1.92yrs | US$339.16k | 0.00029% $ 264.2k | |
| Independent Director | 10.42yrs | US$297.94k | 0.040% $ 36.8m | |
| Independent Director | 7.67yrs | US$331.83k | 0.0017% $ 1.6m | |
| Independent Director | 3.83yrs | US$320.51k | 0.00029% $ 264.2k | |
| Independent Director | 4.83yrs | US$313.58k | 0% $ 0 | |
| Vice Chair | 4.17yrs | US$23.85m | 0.0084% $ 7.7m | |
| Independent Director | 1.67yrs | US$274.04k | 0% $ 0 | |
| Independent Director | 3.08yrs | US$312.31k | 0.00045% $ 410.0k | |
| Independent Director | 2.58yrs | US$343.19k | 0.000070% $ 63.8k |
3.1yrs
Average Tenure
59yo
Average Age
Experienced Board: GE's board of directors are considered experienced (3.1 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: General Electric Company
- Ticker: GE
- Exchange: NYSE
- Founded: 1892
- Industry: Industrial Conglomerates
- Sector: Capital Goods
- Market Cap: US$91.103b
- Shares outstanding: 8.76b
- Website: https://www.ge.com
Number of Employees
Location
- General Electric Company
- 5 Necco Street
- Boston
- Massachusetts
- 2210
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GE | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| GE * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| GEC | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| GE | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1968 |
| GNE | ENXTPA (Euronext Paris) | Yes | Common Stock | FR | EUR | Jan 1968 |
| GEC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| GEC | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| GE | BVC (Bolsa de Valores de Colombia) | Yes | Common Stock | CO | COP | Jan 1968 |
| GEZ | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Stock | GB | CHF | Jan 1968 |
| GE | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jan 1968 |
| GE | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| GEL-U | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1968 |
| GE | BASE (Buenos Aires Stock Exchange) | CEDEARS EACH REPR 1 COM USD0.06 | AR | ARS | Jan 2001 | |
| GEOO34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM SH | BR | BRL | Sep 2011 |
Biography
General Electric Company operates as a high-tech industrial company in the United States, Europe, Asia, the Americas, the Middle East, and Africa. It operates through Power, Renewable Energy, Aviation, Hea...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/29 00:26 |
| End of Day Share Price | 2020/11/27 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.