General Electric Company Fundamental Analysis (XETRA: GEC.DE)
General Electric Company (XETRA: GEC.DE) shows moderate financial fundamentals with a PE ratio of 1.51, profit margin of 13.95%, and ROE of 31.05%. The company generates $67.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GEC.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakGEC.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGEC.DE trades at attractive valuation levels.
Growth Score
WeakGEC.DE faces weak or negative growth trends.
Financial Health Score
ExcellentGEC.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateGEC.DE maintains healthy but balanced margins.
Key Financial Metrics
Is GEC.DE Expensive or Cheap?
P/E Ratio
GEC.DE trades at 1.51 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GEC.DE's PEG of -0.03 indicates potential undervaluation.
Price to Book
The market values General Electric Company at 0.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.56 times EBITDA. This is generally considered low.
How Well Does GEC.DE Make Money?
Net Profit Margin
For every $100 in sales, General Electric Company keeps $13.95 as profit after all expenses.
Operating Margin
Core operations generate 8.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.05 in profit for every $100 of shareholder equity.
ROA
General Electric Company generates $5.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
General Electric Company generates limited operating cash flow of $5.17B, signaling weaker underlying cash strength.
Free Cash Flow
General Electric Company produces free cash flow of $3.58B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.26 in free cash annually.
FCF Yield
GEC.DE converts 25.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How GEC.DE Stacks Against Its Sector Peers
| Metric | GEC.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.51 | 28.27 | Better (Cheaper) |
| ROE | 31.05% | 1119.00% | Weak |
| Net Margin | 13.95% | -20989.00% (disorted) | Strong |
| Debt/Equity | 0.84 | 0.80 | Neutral |
| Current Ratio | 1.18 | 21.75 | Neutral |
| ROA | 5.81% | -1330684.00% (disorted) | Weak |
GEC.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews General Electric Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure