Short Report on General Electric Company Stock

General Electric Company logged a 2.3% change during today's afternoon session, and is now trading at a price of $93.47 per share. The S&P 500 index moved 0.38% and the Nasdaq posted a -0.43% change.

General Electric Company shares moved 27.22% over the last 52 weeks, with a high of $94.94 and a low of $46.62. During this time, the stock outperformed the S&P 500 index by 40.43%. As of January 2022, the company's 50-day average price is $84.0. General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. The large-cap Consumer Discretionary company is based in Boston, MA. General Electric Company has returned a 0.35% dividend yield over the last 12 months.

Snapshot of the Company's Decent Operating Margins:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $90,221 $75,833 $74,196 $76,555
Revenue Growth n/a -15.95% -2.16% 3.18%
Gross Margins 8.81% 4.26% 83.37% 80.57%
Gross Margins Growth n/a -51.65% 1857.04% -3.36%
Operating Margins -10.35% -3.7% 62.2% 56.71%
Operating Margins Growth n/a 64.25% 1781.08% -8.83%
Net Margins -5.52% 7.52% -8.79% 0.29%
Net Margins Growth n/a 236.23% -216.89% 103.3%
Earnings Per Share -$0.57 $0.65 -$5.93 $0.21
EPS Growth n/a 214.04% -1012.31% 103.54%
Diluted Shares (MM) 8,738 8,765 1,099 1,089
Free Cash Flow (MM) $2,639 $165 $1,971 $4,432
FCF Growth n/a -93.75% 1094.55% 124.86%
Capital Expenditures (MM) $6,095 $3,403 $1,361 $1,484
Net Debt / EBITDA -7.16 -27.18 0.42 0.36

General Electric Company has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. But based on its EPS guidance of 3.84, the company has a forward P/E ratio of 24.34. In contrast, the Consumer Discretionary sector's average P/E ratio is 22.33.

On the other hand, General Electric Company is possibly undervalued in terms of its net assets because its P/B ratio is 2.829 compared to its sector average of 3.12.

General Electric Company's strong cash flow trend and reasonable levels of debt attenuate the company's lofty valuation in terms of earnings and assets.

General Electric Company Is the Subject of Mixed Market Indicators:

18 analysts are following General Electric Company and have set target prices ranging from $84.2 to $105.0 per share. On average, they have given the company a rating of buy. At the current price of $93.47, GE is trading -2.3% away from its average analyst target price of $95.67 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 1.54% of the company's shares are tied to short positions. Institutions own 72.52% of General Electric Company's shares, while the insider ownership rate stands at 0.2%. The biggest shareholder is Capital Research Global Investors with a 9% stake in the company worth approximately $9,527,333,846.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.