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GE

General ElectricNYSE:GE Stock Report

Last Price

US$96.30

Market Cap

US$105.7b

7D

-6.7%

1Y

8.3%

Updated

21 Jan, 2022

Data

Company Financials +
GE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends0/6

GE Stock Overview

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

General Electric Competitors

3M

NYSE:MMM

US$99.5b

Microsoft

NasdaqGS:MSFT

US$2.2t

Amazon.com

NasdaqGS:AMZN

US$1.4t

Tesla

NasdaqGS:TSLA

US$950.0b

Price History & Performance

Summary of all time highs, changes and price drops for General Electric
Historical stock prices
Current Share PriceUS$96.30
52 Week HighUS$116.17
52 Week LowUS$85.12
Beta1.04
1 Month Change3.47%
3 Month Change-7.45%
1 Year Change8.35%
3 Year Change31.41%
5 Year Change-59.89%
Change since IPO116.40%

Recent News & Updates

Jan 18

General Electric: Dead Money

General Electric does not have a large 'conglomerate discount'. General Electric’s P/E ratio and P/FCF ratio are high. It might be better to wait for the separation before investing in General Electric.

Jan 07

Where Will General Electric Stock Be In 10 Years?

GE is currently trading slightly below the lowest target price on the Street, and this suggests that its shares may have bottomed out. But there is significant uncertainty over General Electric's long-term, 10-year outlook. GE's split will be key in the first five years of the next decade; while the spotlight is on GE's growth as an aviation-focused company in the latter five years. I rate General Electric as Hold, considering both its current stock price levels and its long-term prospects.

Jan 04
Is General Electric (NYSE:GE) Using Too Much Debt?

Is General Electric (NYSE:GE) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Dec 27

General Electric: It's Looking Even Better Now

General Electric is splitting into 3 separate companies. But that doesn't change much of their underlying business growth prospects, which I believe are bullish as the company focuses on fast-growing industries. As a result, I remain bullish on the company's long-term prospects.

Shareholder Returns

GEUS IndustrialsUS Market
7D-6.7%-5.0%-6.1%
1Y8.3%3.8%4.2%

Return vs Industry: GE exceeded the US Industrials industry which returned 4.6% over the past year.

Return vs Market: GE exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is GE's price volatile compared to industry and market?
GE volatility
GE Average Weekly Movement4.1%
Industrials Industry Average Movement3.9%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
1878174,000Larry Culphttps://www.ge.com

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 industrial applications; maintenance, service, and upgrade solutions to plant assets and their operational lifecycle; steam power technology for fossil and nuclear applications, including boilers, generators, steam turbines, and air quality control systems; and advanced reactor technologies solutions comprising reactors, fuels, and support services for boiling water reactors. This segment also applies the science and systems of power conversion to provide motors, generators, automation, and control equipment; and drives for energy intensive industries, such as marine, oil and gas, mining, rail, metals, test systems, and water.

General Electric Fundamentals Summary

How do General Electric's earnings and revenue compare to its market cap?
GE fundamental statistics
Market CapUS$105.70b
Earnings (TTM)US$1.46b
Revenue (TTM)US$78.62b

72.3x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GE income statement (TTM)
RevenueUS$78.62b
Cost of RevenueUS$54.75b
Gross ProfitUS$14.67b
ExpensesUS$13.20b
EarningsUS$1.46b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 25, 2022

Earnings per share (EPS)1.33
Gross Margin18.65%
Net Profit Margin1.86%
Debt/Equity Ratio161.4%

How did GE perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

24%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GE ($96.3) is trading below our estimate of fair value ($252.75)

Significantly Below Fair Value: GE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GE is poor value based on its PE Ratio (72.3x) compared to the US Industrials industry average (33.6x).

PE vs Market: GE is poor value based on its PE Ratio (72.3x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: GE is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: GE is good value based on its PB Ratio (2.8x) compared to the US Industrials industry average (3.1x).


Future Growth

How is General Electric forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

41.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GE's forecast earnings growth (41.2% per year) is above the savings rate (2%).

Earnings vs Market: GE's earnings (41.2% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: GE's revenue (6% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: GE's revenue (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 high in 3 years time (20.5%)


Past Performance

How has General Electric performed over the past 5 years?

-1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GE has a large one-off gain of $1.5B impacting its September 30 2021 financial results.

Growing Profit Margin: GE's current net profit margins (1.9%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: GE has become profitable over the past 5 years, growing earnings by -1.8% per year.

Accelerating Growth: GE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GE had negative earnings growth (-66.6%) over the past year, making it difficult to compare to the Industrials industry average (10.1%).


Return on Equity

High ROE: GE's Return on Equity (4.6%) is considered low.


Financial Health

How is General Electric's financial position?


Financial Position Analysis

Short Term Liabilities: GE's short term assets ($103.6B) exceed its short term liabilities ($57.7B).

Long Term Liabilities: GE's short term assets ($103.6B) do not cover its long term liabilities ($140.5B).


Debt to Equity History and Analysis

Debt Level: GE's net debt to equity ratio (108%) is considered high.

Reducing Debt: GE's debt to equity ratio has reduced from 172.5% to 161.4% over the past 5 years.

Debt Coverage: GE's debt is not well covered by operating cash flow (7.2%).

Interest Coverage: GE's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

0.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GE's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: GE's dividend (0.33%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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?

3.0yrs

Average management tenure


CEO

Larry Culp (58 yo)

3.25yrs

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 ($USD73.19M) is above average for companies of similar size in the US market ($USD11.42M).

Compensation vs Earnings: Larry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: GE's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: GE's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GE 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 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
  • Implied Market Cap: US$105.705b
  • Shares outstanding: 1.10b
  • Website: https://www.ge.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:35
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
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.