GE HealthCare Technologies Inc. Fundamental Analysis (NASDAQ: GEHC)
GE HealthCare Technologies Inc. Fundamental Analysis (NASDAQ: GEHC)
GE HealthCare Technologies Inc. (NASDAQ: GEHC) shows moderate financial fundamentals with a PE ratio of 21.19, profit margin of 7.86%, and ROE of 15.16%. The company generates $20.2B in annual revenue with moderate year-over-year growth of 4.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GEHC's fundamental strength across five key dimensions:
Efficiency Score
WeakGEHC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGEHC trades at attractive valuation levels.
Growth Score
WeakGEHC faces weak or negative growth trends.
Financial Health Score
ExcellentGEHC maintains a strong and stable balance sheet.
Profitability Score
ModerateGEHC maintains healthy but balanced margins.
Key Financial Metrics
Is GEHC Expensive or Cheap?
P/E Ratio
GEHC trades at 21.19 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GEHC's PEG of -0.73 indicates potential undervaluation.
Price to Book
The market values GE HealthCare Technologies Inc. at 3.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.29 times EBITDA. This is generally considered low.
How Well Does GEHC Make Money?
Net Profit Margin
For every $100 in sales, GE HealthCare Technologies Inc. keeps $7.86 as profit after all expenses.
Operating Margin
Core operations generate 12.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.16 in profit for every $100 of shareholder equity.
ROA
GE HealthCare Technologies Inc. generates $4.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GE HealthCare Technologies Inc. generates limited operating cash flow of $1.41B, signaling weaker underlying cash strength.
Free Cash Flow
GE HealthCare Technologies Inc. produces free cash flow of $892.40M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.98 in free cash annually.
FCF Yield
GEHC converts 2.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How GEHC Stacks Against Its Sector Peers
| Metric | GEHC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.19 | 31.50 | Better (Cheaper) |
| ROE | 15.16% | 422.00% | Weak |
| Net Margin | 7.86% | 19867.00% | Weak |
| Debt/Equity | 0.92 | 0.53 | Weak (High Leverage) |
| Current Ratio | 1.02 | 5.56 | Neutral |
| ROA | 4.27% | 1571.00% | Weak |
GEHC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GE HealthCare Technologies Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
19.69%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-85.01%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
17.37%
Industry Style: Defensive, Growth, Innovation
High Growth