NYSE:GE

Stock Analysis Report

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Market Cap

US$118.2b

Last Updated

2021/06/15 09:10 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Trading at 14.9% below our estimate of its fair value

Earnings are forecast to grow 43.11% per year

Risk Analysis

No risks detected for GE from our risk checks.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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 +/- 4% a week.

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


Market Performance


7 Day Return

-3.1%

GE

-1.1%

US Industrials

0.8%

US Market


1 Year Return

80.3%

GE

46.7%

US Industrials

43.1%

US Market

Return vs Industry: GE exceeded the US Industrials industry which returned 48.9% over the past year.

Return vs Market: GE exceeded the US Market which returned 44.3% over the past year.


Shareholder returns

GEIndustryMarket
7 Day-3.1%-1.1%0.8%
30 Day1.6%0.2%3.0%
90 Day-1.0%6.3%4.8%
1 Year81.2%80.3%50.1%46.7%45.5%43.1%
3 Year10.5%4.0%29.7%18.2%60.2%50.3%
5 Year-50.6%-56.5%10.4%-4.1%126.4%101.0%

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

Valuation

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

16.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GE ($13.69) is trading below our estimate of fair value ($16.09)

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 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 good value based on its PB Ratio (3.6x) compared to the US Industrials industry average (4.1x).


Future Growth

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

43.1%

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 (6.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: GE's revenue (6.7% 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 (25.6%)


Past Performance

How has General Electric performed over the past 5 years?

-18.7%

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 18.7% 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 (-16.4%).


Return on Equity

High ROE: GE has a negative Return on Equity (-1.38%), 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 ($113.2B) exceed its short term liabilities ($57.7B).

Long Term Liabilities: GE's short term assets ($113.2B) do not cover its long term liabilities ($152.3B).


Debt to Equity History and Analysis

Debt Level: GE's debt to equity ratio (200.9%) is considered high.

Reducing Debt: GE's debt to equity ratio has increased from 194% to 200.9% 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: GE has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

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

0.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GE's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: GE's dividend (0.29%) is low compared to the top 25% of dividend payers in the US market (3.35%).


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?

2.4yrs

Average management tenure


CEO

Larry Culp (57 yo)

2.67yrs

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 ($USD73.19M) is above average for companies of similar size in the US market ($USD11.17M).

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


Leadership Team

Experienced Management: GE's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: GE's board of directors are considered experienced (3.2 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: 1878
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: US$118.248b
  • Shares outstanding: 8.78b
  • Website: https://www.ge.com

Number of Employees


Location

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

Listings


Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/15 09:10
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
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.