General Electric
Market Cap
US$61.7b
Last Updated
2020/06/03 01:57 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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -55.5% per year for the next 3 years
Snowflake Analysis
Fair value with mediocre 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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-3.3%
GE
0.9%
US Industrials
2.9%
US Market
1 Year Return
-28.7%
GE
-11.2%
US Industrials
8.9%
US Market
Return vs Industry: GE underperformed the US Industrials industry which returned -12.3% over the past year.
Return vs Market: GE underperformed the US Market which returned 8.5% over the past year.
Shareholder returns
| GE | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.3% | 0.9% | 2.9% |
| 30 Day | 13.5% | 11.7% | 10.6% |
| 90 Day | -30.1% | -8.4% | 5.1% |
| 1 Year | -28.4%-28.7% | -9.4%-11.2% | 11.4%8.9% |
| 3 Year | -71.9%-74.5% | -30.1%-36.2% | 34.3%25.4% |
| 5 Year | -70.0%-74.5% | -16.7%-28.2% | 60.7%42.7% |
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
2 months ago | Simply Wall St
What Kind Of Shareholder Appears On The General Electric Company's (NYSE:GE) Shareholder Register?3 months ago | Simply Wall St
Did Changing Sentiment Drive General Electric's (NYSE:GE) Share Price Down A Worrying 64%?4 months ago | Simply Wall St
Calculating The Intrinsic Value Of General Electric Company (NYSE:GE)Valuation
Is General Electric undervalued compared to its fair value and its price relative to the market?
11.52x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GE ($7.05) is trading above our estimate of fair value ($6.46)
Significantly Below Fair Value: GE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GE is good value based on its PE Ratio (11.5x) compared to the Industrials industry average (17.3x).
PE vs Market: GE is good value based on its PE Ratio (11.5x) compared to the US market (15.8x).
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 (1.7x) compared to the US Industrials industry average (3.5x).
Next Steps
Future Growth
How is General Electric forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-55.5%
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 (-55.5% per year).
Earnings vs Market: GE's earnings are forecast to decline over the next 3 years (-55.5% per year).
High Growth Earnings: GE's earnings are forecast to decline over the next 3 years.
Revenue vs Market: GE's revenue (4.6% per year) is forecast to grow slower than the US market (8.9% per year).
High Growth Revenue: GE's revenue (4.6% 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 (11.1%).
Next Steps
Past Performance
How has General Electric performed over the past 5 years?
-42.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GE has a large one-off gain of $4.2B impacting its March 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 -42.8% 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 (-6.5%).
Return on Equity
High ROE: GE's Return on Equity (15.9%) 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 ($95.9B) exceed its short term liabilities ($51.1B).
Long Term Liabilities: GE's short term assets ($95.9B) do not cover its long term liabilities ($174.0B).
Debt to Equity History and Analysis
Debt Level: GE's debt to equity ratio (228.9%) is considered high.
Reducing Debt: GE's debt to equity ratio has reduced from 298.8% to 228.9% over the past 5 years.
Debt Coverage: GE's debt is not well covered by operating cash flow (10%).
Interest Coverage: GE's interest payments on its debt are well covered by EBIT (3.7x coverage).
Balance Sheet
Next Steps
Dividend
What is General Electric's current dividend yield, its reliability and sustainability?
0.57%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GE's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: GE's dividend (0.57%) is low compared to the top 25% of dividend payers in the US market (4.48%).
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?
1.7yrs
Average management tenure
CEO
Larry Culp (56yo)
1.67yrs
Tenure
US$24,553,788
Compensation
Mr. H. Lawrence Culp, Jr., also known as Larry, has been the Chairman and Chief Executive Officer of General Electric Company since October 1, 2018. He joined General Electric Company as an independent dir ...
CEO Compensation Analysis
Compensation vs Market: Larry's total compensation ($USD24.55M) is above average for companies of similar size in the US market ($USD11.58M).
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 | 1.67yrs | US$24.55m | 0.014% $8.3m | |
| Senior VP & Chief Human Resources Officer | 1.33yrs | US$13.84m | 0.0012% $752.3k | |
| Vice Chair | 3.75yrs | US$23.85m | 0.0083% $5.1m | |
| Senior Vice President | 4.67yrs | US$10.52m | 0.0031% $1.9m | |
| Senior VP & CFO | 0.25yr | no data | no data | |
| VP, Controller & Chief Accounting Officer | 1.75yrs | no data | 0.00082% $505.7k | |
| Senior VP & Chief Technology Officer | 4.75yrs | no data | no data | |
| Vice President of Investor Communications | 1.42yrs | no data | no data | |
| Chief Marketing & Communications Officer | 1.42yrs | no data | no data | |
| Chief Communications Officer | 1.75yrs | no data | no data |
1.7yrs
Average Tenure
56yo
Average Age
Experienced Management: GE's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 1.67yrs | US$24.55m | 0.014% $8.3m | |
| Lead Independent Director | 1.67yrs | US$366.23k | 0.00063% $388.5k | |
| Independent Director | 1.5yrs | US$339.16k | 0.00029% $178.8k | |
| Independent Director | 10yrs | US$297.94k | 0.040% $25.0m | |
| Independent Director | 7.33yrs | US$331.83k | 0.0017% $1.1m | |
| Independent Director | 3.42yrs | US$320.51k | 0.00029% $178.8k | |
| Independent Director | 4.42yrs | US$313.58k | no data | |
| Independent Director | 1.25yrs | US$274.04k | no data | |
| Independent Director | 2.67yrs | US$312.31k | 0.00045% $277.5k | |
| Independent Director | 2.17yrs | US$343.19k | 0.000070% $43.2k |
2.4yrs
Average Tenure
58yo
Average Age
Experienced Board: GE's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
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$61.667b
- Shares outstanding: 8.75b
- 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, Healthcare, and Capital segments. The Power segment offers technologies, solutions, and services related to energy production, including gas and steam turbines, generators, and power generation services. The Renewable Energy segment provides wind turbine platforms, and hardware and software; offshore wind turbines; solutions, products, and services to hydropower industry; blades for onshore and offshore wind turbines; and high voltage equipment. The Aviation segment provides jet engines and turboprops for commercial and military airframes; maintenance, component repair, and overhaul services, as well as replacement parts; integrated digital components; and additive machines and materials, and engineering services. The Healthcare segment provides healthcare technologies in medical imaging, digital solutions, patient monitoring, and diagnostics; drug discovery; biopharmaceutical manufacturing technologies; and performance enhancement solutions to hospitals, medical facilities, pharmaceutical and biotechnology companies, and life science research markets. The Capital segment leases and finances aircraft, aircraft engines, and helicopters; provides financial and underwriting solutions; and manages its run-off insurance operations which provides life and health insurance and reinsurance products. The company was founded in 1892 and is headquartered in Boston, Massachusetts.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/03 01:57 |
| End of Day Share Price | 2020/06/02 00:00 |
| Earnings | 2020/03/31 |
| 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.