NYSE:GE

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.5%

GE

-2.3%

US Industrials

-1.1%

US Market


1 Year Return

20.5%

GE

4.2%

US Industrials

17.8%

US Market

Return vs Industry: GE exceeded the US Industrials industry which returned 4.2% over the past year.

Return vs Market: GE exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

GEIndustryMarket
7 Day-4.5%-2.3%-1.1%
30 Day4.6%-1.1%1.5%
90 Day5.8%1.0%6.6%
1 Year25.8%20.5%7.2%4.2%20.2%17.8%
3 Year-55.3%-59.4%-15.9%-23.1%47.5%38.1%
5 Year-44.7%-52.9%3.1%-10.9%71.2%52.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GE ($12.25) is trading below our estimate of fair value ($25.38)

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


Price To Earnings Ratio

PE vs Industry: GE is unprofitable, so we can't compare its PE Ratio to the Industrials industry average.

PE vs Market: GE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


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 (4x).


Next Steps

Future Growth

How is General Electric forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

88.2%

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 (1.7%).

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's is expected to become profitable in the next 3 years.

Revenue vs Market: GE's revenue (0.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GE's revenue (0.8% 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 high in 3 years time (25.5%)


Next Steps

Past Performance

How has General Electric performed over the past 5 years?

-53.8%

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, and losses have increased over the past 5 years at a rate of -53.8% 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 (-9.2%).


Return on Equity

High ROE: GE has a negative Return on Equity (1.42%), as it is currently unprofitable.


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 ($148.9B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: GE's short term assets ($148.9B) do not cover its long term liabilities ($234.3B).


Debt to Equity History and Analysis

Debt Level: GE's debt to equity ratio (305%) is considered high.

Reducing Debt: GE's debt to equity ratio has increased from 192% to 305% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GE's debt is covered by short term assets (assets are 1.6x debt).


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: GE has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: GE has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.33%

Current Dividend Yield


Upcoming Dividend Payment

Purchase General Electric before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0.3%

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 (1.45%).

High Dividend: GE's dividend (0.33%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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?

1.5yrs

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 ($USD17.44M) is above average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
H. Culp
Chairman & CEO1.3yrsUS$17.44m0.014% $14.5m
Jamie Miller
Senior VP & CFO2.3yrsUS$7.40m0.0036% $3.8m
Michael Holston
Senior VP1.8yrsUS$13.52m0.00078% $834.5k
David Joyce
Vice Chair3.4yrsUS$7.52m0.0083% $8.9m
Kieran Murphy
Senior Vice President1.4yrsUS$7.29m0.0011% $1.2m
Thomas Timko
VP, Controller & Chief Accounting Officer1.4yrsno data0.00082% $877.3k
Victor Abate
Senior VP & Chief Technology Officer4.4yrsno datano data
Chris Drumgoole
VP & Chief Information Officer1.6yrsno datano data
Steven Winoker
Vice President of Investor Communications1.1yrsno datano data
Linda Boff
Chief Marketing & Communications Officer1.1yrsno datano data

1.5yrs

Average Tenure

56yo

Average Age

Experienced Management: GE's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
H. Culp
Chairman & CEO1.3yrsUS$17.44m0.014% $14.5m
Thomas Horton
Lead Director1.3yrsUS$256.46k0.00063% $674.0k
Paula G. Reynolds
Independent Director1.2yrsUS$35.29k0.00030% $321.0k
James Tisch
Independent Director9.7yrsUS$309.29k0.041% $43.4m
Francisco D'Souza
Independent Director7yrsUS$299.64k0.0017% $1.9m
Risa Lavizzo-Mourey
Independent Director3.1yrsUS$309.63k0.00029% $310.3k
Sébastien Bazin
Independent Director4.1yrsUS$306.89kno data
Catherine Lesjak
Independent Director0.9yrsno datano data
Edward Garden
Independent Director2.3yrsUS$328.85k0.00024% $256.8k
Leslie Seidman
Independent Director1.8yrsUS$257.56k0.000070% $74.9k

2.1yrs

Average Tenure

58yo

Average Age

Experienced Board: GE's board of directors are not considered experienced ( 2.1 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$106.986b
  • 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
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
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. 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 Analysis2020/02/23 23:41
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.