General Electric Company returned gains of 33.7% last year, with its stock price reaching a high of $97.87 and a low of $46.78. Over the same period, the stock outperformed the S&P 500 index by 41.0%. More recently, the company's 50-day average price was $87.14. General Electric Company operates as a high-tech industrial company in Europe, China, Asia, the Americas, the Middle East, and Africa. Based in Boston, MA, the large-cap Consumer Discretionary company has 172,000 full time employees. General Electric Company has offered a 0.3% dividend yield over the last 12 months.
Declining Revenues With Decreasing Reinvestment in the Business:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue | $95,215,000 | $79,619,000 | $74,196,000 | $76,556,000 |
| Gross Margins | 26.4% | 24.1% | 27.4% | 27.5% |
| Operating Margins | 8.3% | 2.0% | 5.1% | 3.5% |
| Net Income | -$4,979,000 | $5,704,000 | -$6,520,000 | $225,000 |
| Net Margins | -5.23% | 7.16% | -8.79% | 0.29% |
| Earnings Per Share | -$4.96 | $4.64 | -$6.16 | $0.53 |
| Diluted Shares | 1,090,500 | 1,095,125 | 1,098,000 | 1,090,280 |
| Free Cash Flow | $2,677,000 | $194,000 | $1,971,000 | $4,432,000 |
| Capital Expenditures | -$6,095,000 | -$3,403,000 | -$1,361,000 | -$1,484,000 |
| Net Current Assets | -$100,972,000 | -$127,967,000 | -$90,913,000 | -$83,972,000 |
| Current Ratio | 1.78 | 1.58 | 1.28 | 1.16 |
| Long Term Debt | $68,811,000 | $70,289,000 | $30,823,000 | $28,593,000 |
| Net Debt / EBITDA | 4.38 | 7.28 | 2.5 | 1.91 |
General Electric Company's Valuation Is in Line With Its Sector Averages:
General Electric Company has a trailing twelve month P/E ratio of 164.4, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of 3.94, the company has a forward P/E ratio of 22.1. The 15.7% compound average growth rate of General Electric Company's historical and projected earnings per share yields a PEG ratio of 10.45. This suggests that these shares are overvalued. In contrast, the market is undervaluing General Electric Company in terms of its equity because its P/B ratio is 2.8. In comparison, the sector average is 3.12. The company's shares are currently trading 369.1% above their Graham number.
Analysts Give General Electric Company an Average Rating of Buy:
The 18 analysts following General Electric Company have set target prices ranging from $84.2 to $110.0 per share, for an average of $97.89 with a buy rating. As of April 2023, the company is trading -4.38% away from its average target price, indicating that there is an analyst consensus of some upside potential.
General Electric Company has a very low short interest because 1.5% of the company's shares are sold short. Institutions own 72.6% of the company's shares, and the insider ownership rate stands at 0.2%, suggesting a small amount of insider investors. The largest shareholder is Capital Research Global Investors, whose 9% stake in the company is worth $9,555,919,807.
