NYSE:GE

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 86.91% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Samsung Electronics

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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

-2.6%

GE

-0.07%

US Industrials

1.2%

US Market


1 Year Return

30.4%

GE

17.7%

US Industrials

24.2%

US Market

Return vs Industry: GE exceeded the US Industrials industry which returned 21.6% over the past year.

Return vs Market: GE exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

GEIndustryMarket
7 Day-2.6%-0.07%1.2%
30 Day7.1%4.9%3.5%
90 Day30.4%14.2%11.7%
1 Year36.2%30.4%21.1%17.7%26.9%24.2%
3 Year-55.9%-60.3%-9.6%-17.8%53.0%43.2%
5 Year-43.1%-52.0%11.7%-3.9%75.3%56.0%

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?

11443.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GE ($12.03) is trading above our estimate of fair value ($6.31)

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


Price To Earnings Ratio

PE vs Industry: GE is poor value based on its PE Ratio (11657x) compared to the Industrials industry average (27.3x).

PE vs Market: GE is poor value based on its PE Ratio (11657x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GE is poor value based on its PEG Ratio (134.1x)


Price to Book Ratio

PB vs Industry: GE is good value based on its PB Ratio (3.8x) compared to the US Industrials industry average (4.3x).


Next Steps

Future Growth

How is General Electric forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

86.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GE's forecast earnings growth (86.9% per year) is above the savings rate (1.7%).

Earnings vs Market: GE's earnings (86.9% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GE's revenue is expected to decline over the next 3 years (-2.8% per year).

High Growth Revenue: GE's revenue is forecast to decline over the next 3 years (-2.8% 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 (16.8%).


Next Steps

Past Performance

How has General Electric performed over the past 5 years?

-60.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GE has a large one-off loss of $3.1B impacting its September 30 2019 financial results.

Growing Profit Margin: GE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GE's earnings have declined by -60.2% 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 (9.3%).


Return on Equity

High ROE: GE's Return on Equity (2.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is General Electric's financial position?


Financial Position Analysis

Short Term Liabilities: GE's short term assets ($88.2B) exceed its short term liabilities ($47.7B).

Long Term Liabilities: GE's short term assets ($88.2B) do not cover its long term liabilities ($186.1B).


Debt to Equity History and Analysis

Debt Level: GE's debt to equity ratio (319.8%) is considered high.

Reducing Debt: GE's debt to equity ratio has increased from 260% to 319.8% over the past 5 years.

Debt Coverage: GE's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: GE's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: GE has a high level of physical assets or inventory.

Debt Coverage by Assets: GE's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

0.34%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: GE's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: GE's dividend (0.33%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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

What is the CEO of General Electric's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Larry Culp (56yo)

1.3yrs

Tenure

US$17,444,075

Compensation

Mr. H. Lawrence Culp, Jr., also known as Larry, has been the Chairman and Chief Executive Officer of General Electric Company (“GE”) since October 1, 2018. He joined GE as an independent director in April  ...


CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD17.44M) is above average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Insufficient data to compare Larry's compensation with company performance.


Management Age and Tenure

1.4yrs

Average Tenure

56yo

Average Age

Experienced Management: GE's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

58yo

Average Age

Experienced Board: GE's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$50,70026 Aug 19
Leslie Seidman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,500
Max PriceUS$7.80
BuyUS$88,30019 Aug 19
Thomas Timko
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer
Shares10,000
Max PriceUS$8.83
BuyUS$279,03616 Aug 19
Scott Strazik
EntityIndividual
Shares34,836
Max PriceUS$8.01
BuyUS$85,30015 Aug 19
Paula G. Reynolds
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$9.05
BuyUS$1,999,94615 Aug 19
H. Culp
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares252,200
Max PriceUS$7.93
BuyUS$994,75214 Aug 19
L. Cox
EntityIndividual
Shares105,600
Max PriceUS$9.42
BuyUS$2,998,42313 Aug 19
H. Culp
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares331,684
Max PriceUS$9.04
BuyUS$498,33713 Aug 19
Thomas Horton
EntityIndividual
Role
Lead Director
Lead Director
Shares55,248
Max PriceUS$9.02
BuyUS$97,50028 May 19
Risa Lavizzo-Mourey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$9.75
SellUS$64,196,87424 May 19
Trian Fund Management, L.P.
EntityCompany
Shares6,659,852
Max PriceUS$10.02

Ownership Breakdown

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


Management Team

  • Larry Culp (56yo)

    Chairman & CEO

    • Tenure: 1.3yrs
    • Compensation: US$17.44m
  • David Joyce (62yo)

    Vice Chair

    • Tenure: 3.3yrs
    • Compensation: US$7.52m
  • Kieran Murphy (56yo)

    Senior Vice President

    • Tenure: 1.3yrs
    • Compensation: US$7.29m
  • Jamie Miller (50yo)

    Senior VP & CFO

    • Tenure: 2.2yrs
    • Compensation: US$7.40m
  • Mike Holston (57yo)

    Senior VP

    • Tenure: 1.8yrs
    • Compensation: US$13.52m
  • Tom Timko (51yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 1.3yrs
  • Vic Abate

    Senior VP & Chief Technology Officer

    • Tenure: 4.3yrs
  • Steve Winoker

    Vice President of Investor Communications

    • Tenure: 1yrs
  • Linda Boff (57yo)

    Chief Marketing & Communications Officer

    • Tenure: 1yrs
  • Chris Drumgoole (43yo)

    VP & Chief Information Officer

    • Tenure: 1.5yrs

Board Members

  • Tom Horton (57yo)

    Lead Director

    • Tenure: 1.3yrs
    • Compensation: US$256.46k
  • Paula G. Reynolds (62yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$35.29k
  • Larry Culp (56yo)

    Chairman & CEO

    • Tenure: 1.3yrs
    • Compensation: US$17.44m
  • James Tisch (66yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$309.29k
  • Frank D'Souza (50yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$299.64k
  • Risa Lavizzo-Mourey (64yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$309.63k
  • Sébastien Bazin (58yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$306.89k
  • Cathie Lesjak (60yo)

    Independent Director

    • Tenure: 0.8yrs
  • Ed Garden (58yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$328.85k
  • Leslie Seidman (57yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$257.56k

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$103.143b
  • Shares outstanding: 8.73b
  • 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
GECXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
GENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
GE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 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
GEWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
GESNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
GEBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 1968
GEZBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBCHFJan 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. 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 airframes; maintenance, component repair, and overhaul services, as well as replacement parts; 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. The Capital segment leases and finances aircraft, aircraft engines, and helicopters; provides financial and underwriting solutions; and manages its run-off insurance operations. The company was founded in 1892 and is headquartered in Boston, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/20 23:38
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.