General Electric Company
Exchange: NYSESector: IndustrialsIndustry: Aerospace & Defense
GE Aviation, an operating unit of GE, is a world-leading provider of jet and turboprop engines, as well as integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings. In turn, GE Canada is a wholly owned subsidiary of GE. Follow GE Aviation on Twitter and YouTube.
Did you know?
Profit margin stands at 19.0%.
Current Price
$313.02
+1.61%GoodMoat Value
$274.52
12.3% overvaluedProfile
Valuation (TTM)
Market Cap$330.18B
P/E37.93
EV$315.62B
P/B17.68
Shares Out1.05B
P/Sales7.20
Revenue$45.86B
EV/EBITDA27.79
General Electric Company (GE) Stock Analysis
GoodMoat Analysis
General Electric is a restructured industrial giant now focused on Aerospace & Defense, showing strong profitability metrics like a 46.6% ROE. However, its high P/E of 35.9x and a GoodMoat Target price of $274.52 suggest the current price of $296.56 may not offer a margin of safety for a value investor.
Read full analysis
General Electric (GE) is a major player in the Aerospace & Defense industry, having recently completed a significant corporate restructuring to focus on its core aviation and power businesses. Applying the GoodMoat framework, the company likely possesses a moderate competitive moat, scoring points in areas like regulatory barriers, scale privilege, and technology leadership due to its entrenched position in the highly complex and regulated aerospace sector. Its financials show impressive quality indicators, including a high Return on Equity of 46.6% and a strong operating margin of 18.7%, which suggest efficient operations post-restructuring. However, the valuation assessment is challenging. The stock trades at a P/E of 35.9x, which is high for a traditional industrial, and the GoodMoat Target price of $274.52 implies the current price of $296.56 is above fair value, offering a negative margin of safety. According to the Decision Framework, while the business may pass the initial Moat & Quality gate, the valuation appears unfavourable as it does not provide the required margin of safety. For a value investor, this suggests the stock is priced for near-perfect execution, making it a less compelling opportunity without a more attractive entry point. Analysis based on data as of 2024-05-15.
Market Cap$330.18B
Current Price$313.02
P/E Ratio37.93
Forward P/E—
PEG Ratio1.03
EPS$8.14
Book Value$17.71
P/B Ratio17.68
GE Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 1.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 8.1B
Revenue
90.2B
FY19
75.8B
FY20
56.5B
FY21
29.1B
FY22
35.3B
FY23
38.7B
FY24
45.9B
FY25
Net Income
—
FY19
5.7B
FY20
—
FY21
336M
FY22
9.5B
FY23
6.6B
FY24
8.7B
FY25
GE 52-Week Range
$177.41
$345.24
50-Day MA: $311.43200-Day MA: $294.14
Did you know?
Price sits at 81% of its 52-week range.
General Electric Company (GE) Financial Summary
General Electric Company (GE) is a Industrials company in the Aerospace & Defense industry, listed on NYSE. The stock currently trades at $313.02 with a market capitalization of $330.18B.
Key valuation metrics include a P/E ratio of 37.93, price-to-book ratio of 17.68, and EPS of $8.14. The company reports a profit margin of 19.0% and return on equity of 46.6%.
GE Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $330.18B |
| P/E Ratio | 37.93 |
| EPS | $8.14 |
| P/B Ratio | 17.68 |
| P/S Ratio | 7.20 |
| EV/EBITDA | 27.79 |
| Dividend Yield | 0.44% |
| Profit Margin | 19.0% |
| Return on Equity | 46.6% |
| Debt/Equity | 1.10 |
GE Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $90.22B | $-4.98B |
| FY20 | $75.83B | $5.70B |
| FY21 | $56.47B | $-6.34B |
| FY22 | $29.14B | $336.00M |
| FY23 | $35.35B | $9.48B |
| FY24 | $38.70B | $6.56B |
| FY25 | $45.85B | $8.70B |
General Electric Company (GE) Valuation
Based on GoodMoat's DCF model, General Electric Company has a fair value estimate of $274.52. At the current price of $313.02, the stock appears 14.0% overvalued relative to our intrinsic value estimate.
GE Quality Indicators
General Electric Company maintains a profit margin of 19.0% and an operating margin of 18.7%. Return on equity stands at 46.6%. The current ratio is 1.04. Debt-to-equity ratio is 1.10.
About General Electric Company
GE Aviation, an operating unit of GE, is a world-leading provider of jet and turboprop engines, as well as integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings. In turn, GE Canada is a wholly owned subsidiary of GE. Follow GE Aviation on Twitter and YouTube.
GE Free Cash Flow
General Electric Company generated $7.39B in trailing twelve-month free cash flow, representing an FCF yield of 2.24%. This moderate FCF yield indicates reasonable cash generation.
GE Shares Outstanding
General Electric Company has 1.05 billion shares outstanding at a share price of $313.02, giving it a market capitalization of $330.18B.
GE Recent Insider Trades
Recent insider transactions at General Electric Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Procacci Riccardo (Senior Vice President) | SELL | 800 | $248088.00 |
| Gowder Amy L (Senior Vice President) | SELL | 4,000 | $1.22M |
| Stokes Russell (Senior Vice President) | SELL | 21,469 | $6.58M |