Now trading at a price of $109.37, General Electric Company has moved -1.5% so far today.
The company's 50-day average price iss $105.18. 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 Technology company has 172,000 full time employees. General Electric Company has offered a 0.3% dividend yield over the last 12 months.
The Company's Revenues Are Declining:
2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
---|---|---|---|---|
Revenue (MM) | $95,215 | $79,619 | $74,196 | $58,099 |
Gross Margins | 26.4% | 24.1% | 27.4% | 23.8% |
Operating Margins | 8.3% | 2.0% | 8.2% | 0.5% |
Net Margins | -5.23% | 7.16% | -8.79% | 0.58% |
Net Income (MM) | -$4,979 | $5,704 | -$6,520 | $339 |
Net Interest Expense (MM) | -$4,227 | -$3,273 | -$1,876 | -$1,477 |
Depreciation & Amort. (MM) | -$5,595 | -$6,018 | -$3,009 | -$2,902 |
Earnings Per Share | -$4.99 | $4.63 | -$6.16 | $7.25 |
EPS Growth | n/a | 192.79% | -233.05% | 217.69% |
Diluted Shares (MM) | 1,091 | 1,095 | 1,098 | 1,090 |
Free Cash Flow (MM) | $2,677 | $194 | $1,971 | $4,742 |
Capital Expenditures (MM) | -$6,095 | -$3,403 | -$1,361 | -$1,174 |
Net Current Assets (MM) | -$108,200 | -$127,966 | -$90,914 | -$95,557 |
Current Ratio | 1.38 | 1.58 | 1.28 | 1.18 |
Long Term Debt (MM) | $68,811 | $70,288 | $30,824 | $20,320 |
Net Debt / EBITDA | 13.43 | 2.65 | -10.11 | 1.75 |
General Electric Company has exceptional EPS growth and decent operating margins with a negative growth trend. Additionally, the company's financial statements display generally positive cash flows and healthy leverage. However, the firm suffers from declining revenues and decreasing reinvestment in the business and slimmer gross margins than its peers. Finally, we note that General Electric Company has just enough current assets to cover current liabilities.
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
General Electric Company has a trailing twelve month P/E ratio of 14.5, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $4.04, the company has a forward P/E ratio of 26.0. According to the 12.6% compound average growth rate of General Electric Company's historical and projected earnings per share, the company's PEG ratio is 1.15. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 9.1%. On this basis, the company's PEG ratio is 1.59. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing General Electric Company in terms of its equity because its P/B ratio is 3.76 while the sector average is 6.23. The company's shares are currently trading 908.1% above their Graham number.
General Electric Company Has an Average Rating of Buy:
The 17 analysts following General Electric Company have set target prices ranging from $84.2 to $130.0 per share, for an average of $112.54 with a buy rating. As of April 2023, the company is trading -6.5% 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 1.2% of the company's shares are sold short. Institutions own 72.8% 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 10% stake in the company is worth $11,409,052,690.