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GE

General Electric NYSE:GE Stock Report

Last Price

US$62.03

Market Cap

US$68.3b

7D

-5.8%

1Y

-40.0%

Updated

05 Jul, 2022

Data

Company Financials +
GE fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends0/6

GE Stock Overview

General Electric Company operates as a high-tech industrial company in Europe, China, Asia, the Americas, the Middle East, and Africa.

Rewards

Trading at 72.9% below our estimate of its fair value

Earnings are forecast to grow 38.75% per year

Risk Analysis

No risks detected for GE from our risk checks.

General Electric Competitors

Price History & Performance

Summary of all time highs, changes and price drops for General Electric
Historical stock prices
Current Share PriceUS$62.03
52 Week HighUS$116.17
52 Week LowUS$59.93
Beta1.02
1 Month Change-19.41%
3 Month Change-31.01%
1 Year Change-39.99%
3 Year Change-24.35%
5 Year Change-70.61%
Change since IPO39.39%

Recent News & Updates

Jul 01

General Electric secures $112M Navy contract modification

General Electric (NYSE:GE) was awarded a $112M firm-fixed-price modification to a previously awarded contract. This modification exercises an option to procure 24 Lot 26 full rate production F414-GE-400 engines and devices in support of F/A-18 Super Hornet production aircraft for the Navy. Work is expected to be completed in February 2024. FY22 aircraft procurement funds in the amount of $112M will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command is the contracting activity.

Jun 24

General Electric: The Future Of The Company's Healthcare Division

GE Healthcare will become an independent company in the first quarter of 2023. Pharmaceutical diagnostics revenue was $487 million in Q1 2022, up 2.7% QoQ. General Electric Healthcare has one of the largest profit margins in the GE structure. GE is expanding its business by acquiring companies that develop diagnostic imaging agents and ultrasound equipment.

Jun 10

General Electric: Prepare For Takeoff

GE's EBIT was $584 million in Q1 2022, up 286.8% year-over-year. The company's total debt was $36,313 million in Q1 2022, down 51.3% year-on-year. GE Aviation's revenue was $5.6 billion, up 12% year-over-year. On May 23, 2022, GE Aviation completed successful testing of its long-range Passport engine, which uses sustainable aviation fuel.

Shareholder Returns

GEUS IndustrialsUS Market
7D-5.8%-2.8%0.3%
1Y-40.0%-30.1%-18.4%

Return vs Industry: GE underperformed the US Industrials industry which returned -30.5% over the past year.

Return vs Market: GE underperformed the US Market which returned -19.1% over the past year.

Price Volatility

Is GE's price volatile compared to industry and market?
GE volatility
GE Average Weekly Movement5.7%
Industrials Industry Average Movement5.7%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.3%

Stable Share Price: GE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GE's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1892168,000Larry Culphttps://www.ge.com

General Electric Company operates as a high-tech industrial company in Europe, China, Asia, the Americas, the Middle East, and Africa. It operates through four segments: Power, Renewable Energy, Aviation, and Healthcare segments. The Power segment offers gas and steam turbines, full balance of plant, upgrade, and service solutions, as well as data-leveraging software for power generation, industrial, government, and other customers.

General Electric Fundamentals Summary

How do General Electric's earnings and revenue compare to its market cap?
GE fundamental statistics
Market CapUS$68.27b
Earnings (TTM)-US$4.40b
Revenue (TTM)US$74.16b

0.9x

P/S Ratio

-15.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GE income statement (TTM)
RevenueUS$74.16b
Cost of RevenueUS$53.49b
Gross ProfitUS$18.47b
Other ExpensesUS$22.87b
Earnings-US$4.40b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 26, 2022

Earnings per share (EPS)-3.99
Gross Margin24.91%
Net Profit Margin-5.93%
Debt/Equity Ratio83.5%

How did GE perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

-8%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GE?

Other financial metrics that can be useful for relative valuation.

GE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA12.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does GE's PS Ratio compare to its peers?

GE PS Ratio vs Peers
The above table shows the PS ratio for GE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.7x
MMM 3M
2.1x4.3%US$73.5b
HON Honeywell International
3.4x6.3%US$117.1b
IEP Icahn Enterprises
1.3x-5.6%US$15.0b
BBU Brookfield Business Partners
0.09x8.3%US$4.5b
GE General Electric
0.9x6.8%US$68.3b

Price-To-Sales vs Peers: GE is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.7x).


Price to Earnings Ratio vs Industry

How does GE's PE Ratio compare vs other companies in the Global Industrials Industry?

Price-To-Sales vs Industry: GE is good value based on its Price-To-Sales Ratio (0.9x) compared to the US Industrials industry average (0.9x)


Price to Sales Ratio vs Fair Ratio

What is GE's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio2.3x

Price-To-Sales vs Fair Ratio: GE is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).


Share Price vs Fair Value

What is the Fair Price of GE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GE ($62.03) is trading below our estimate of fair value ($228.81)

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


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GE's PEG Ratio to determine if it is good value.


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Future Growth

How is General Electric forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


38.8%

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 (1.9%).

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 is expected to become profitable in the next 3 years.

Revenue vs Market: GE's revenue (6.8% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: GE's revenue (6.8% 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 (13.3%).


Discover growth companies

Past Performance

How has General Electric performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.2%

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, but has reduced losses over the past 5 years at a rate of 14.2% 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 (55.3%).


Return on Equity

High ROE: GE has a negative Return on Equity (-10.48%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is General Electric's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: GE's short term assets ($63.3B) exceed its short term liabilities ($53.3B).

Long Term Liabilities: GE's short term assets ($63.3B) do not cover its long term liabilities ($98.3B).


Debt to Equity History and Analysis

Debt Level: GE's net debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: GE's debt to equity ratio has reduced from 162.7% to 83.5% 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: Whilst unprofitable GE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 35.1% per year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GE's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: GE's dividend (0.52%) is low compared to the top 25% of dividend payers in the US market (4.24%).


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.


Earnings Payout to Shareholders

Earnings Coverage: GE is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: GE is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Larry Culp (59 yo)

3.75yrs

Tenure

US$22,663,449

Compensation

Mr. H. Lawrence Culp, Jr., also known as Larry, serves as Chief Executive Officer of GE Aviation Systems LLC since June 27, 2022. He has been the Chairman and Chief Executive Officer of General Electric Co...


CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD22.66M) is above average for companies of similar size in the US market ($USD13.41M).

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


Leadership Team

Experienced Management: GE's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: GE's board of directors are considered experienced (4.3 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: 1892
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Implied Market Cap: US$68.274b
  • 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 Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.