NYSE:GE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with concerning outlook.


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 +/- 5% a week.

Volatility Over Time: GE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

8.5%

GE

3.5%

US Industrials

-0.4%

US Market


1 Year Return

44.7%

GE

24.8%

US Industrials

36.2%

US Market

Return vs Industry: GE exceeded the US Industrials industry which returned 24.8% over the past year.

Return vs Market: GE exceeded the US Market which returned 36.2% over the past year.


Shareholder returns

GEIndustryMarket
7 Day8.5%3.5%-0.4%
30 Day19.3%4.8%-2.9%
90 Day25.2%6.2%5.0%
1 Year45.4%44.7%27.9%24.8%39.1%36.2%
3 Year-2.5%-9.0%9.9%0.3%48.4%39.0%
5 Year-48.8%-55.2%4.9%-9.3%116.5%92.4%

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?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GE ($13.6) is trading below our estimate of fair value ($16.54)

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 (22.9x) compared to the US Industrials industry average (28x).

PE vs Market: GE is poor value based on its PE Ratio (22.9x) compared to the US market (21.5x).


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 (3.4x) compared to the US Industrials industry average (3.6x).


Next Steps

Future Growth

How is General Electric forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-34.2%

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 (-34.2% per year).

Earnings vs Market: GE's earnings are forecast to decline over the next 3 years (-34.2% per year).

High Growth Earnings: GE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GE's revenue (4.3% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: GE's revenue (4.3% 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 very high in 3 years time (41.3%).


Next Steps

Past Performance

How has General Electric performed over the past 5 years?

-21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GE has a large one-off gain of $7.8B impacting its December 31 2020 financial results.

Growing Profit Margin: GE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GE's earnings have declined by 21.8% 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 (-31.6%).


Return on Equity

High ROE: GE's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is General Electric's financial position?


Financial Position Analysis

Short Term Liabilities: GE's short term assets ($88.4B) exceed its short term liabilities ($56.1B).

Long Term Liabilities: GE's short term assets ($88.4B) do not cover its long term liabilities ($160.3B).


Debt to Equity History and Analysis

Debt Level: GE's debt to equity ratio (202.5%) is considered high.

Reducing Debt: GE's debt to equity ratio has increased from 191.7% to 202.5% over the past 5 years.

Debt Coverage: GE's debt is not well covered by operating cash flow (4.8%).

Interest Coverage: Insufficient data to determine if GE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

0.29%

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 (1.31%).

High Dividend: GE's dividend (0.29%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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?

2.2yrs

Average management tenure


CEO

Larry Culp (57 yo)

2.42yrs

Tenure

US$24,553,788

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 ($USD24.55M) is above average for companies of similar size in the US market ($USD10.58M).

Compensation vs Earnings: Larry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
H. Culp
Chairman & CEO2.42yrsUS$24.55m0.17%
$ 205.7m
L. Cox
Senior VP & Chief Human Resources Officer2.08yrsUS$13.84m0.0012%
$ 1.5m
David Joyce
Vice Chairmanno dataUS$23.85m0.012%
$ 14.2m
Russell Stokes
President & CEO of GE Aviation Services and Chairman of GE Power Portfoliono dataUS$10.52m0.0034%
$ 4.1m
Carolina Dybeck Happe
Senior VP & CFO1yrno datano data
Thomas Timko
VP, Controller & Chief Accounting Officer2.5yrsno data0.0015%
$ 1.8m
Victor Abate
Senior VP & CTO5.5yrsno datano data
Nancy Anderson
VP & Chief Information Officer1.08yrsno datano data
Steven Winoker
Vice President of Investor Communications2.17yrsno datano data
Linda Boff
Chief Marketing & Communications Officer2.17yrsno datano data
Kathy Duggan
Chief Human Resource Officer1.08yrsno datano data
Richard Laxer
Senior Vice President4.5yrsno datano data

2.2yrs

Average Tenure

57yo

Average Age

Experienced Management: GE's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
H. Culp
Chairman & CEO2.42yrsUS$24.55m0.17%
$ 205.7m
Russell Stokes
President & CEO of GE Aviation Services and Chairman of GE Power Portfoliono dataUS$10.52m0.0034%
$ 4.1m
Alec Burger
Senior VPno datano datano data
Thomas Horton
Lead Independent Director2.42yrsUS$366.23k0.00063%
$ 751.2k
Paula G. Reynolds
Independent Director2.25yrsUS$339.16k0.00029%
$ 345.8k
James Tisch
Independent Director10.75yrsUS$297.94k0.040%
$ 48.1m
Francisco D'Souza
Independent Director8.08yrsUS$331.83k0.0017%
$ 2.1m
Risa Lavizzo-Mourey
Independent Director4.17yrsUS$320.51k0.00029%
$ 345.8k
Sebastien Bazin
Independent Director5.17yrsUS$313.58k0%
$ 0
Catherine Lesjak
Independent Director2yrsUS$274.04k0%
$ 0
Edward Garden
Independent Director3.42yrsUS$312.31k0.00045%
$ 536.6k
Leslie Seidman
Independent Director2.92yrsUS$343.19k0.000070%
$ 83.5k

3.2yrs

Average Tenure

58.5yo

Average Age

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$119.244b
  • Shares outstanding: 8.77b
  • Website: https://www.ge.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
GE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
GEBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1968
GECLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
GESWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
GNEENXTPA (Euronext Paris)YesCommon StockFREURJan 1968
GECDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
GECXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
GEBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 1968
GEZBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBCHFJan 1968
GESNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
GEWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
GEL-UETLX (Eurotlx)YesCommon StockITEURJan 1968
GEBASE (Buenos Aires Stock Exchange)CEDEARS EACH REPR 1 COM USD0.06ARARSJan 2001
GEOO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHBRBRLSep 2011

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 Analysis2021/03/08 00:23
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.