GE HealthCare Technologies Inc.
GE HealthCare Technologies Inc. Fundamental Analysis
GE HealthCare Technologies Inc. (GEHCV) shows moderate financial fundamentals with a PE ratio of 13.38, profit margin of 9.10%, and ROE of 18.74%. The company generates $20.9B in annual revenue with weak year-over-year growth of 0.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GEHCV's fundamental strength across five key dimensions:
Efficiency Score
WeakGEHCV struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGEHCV trades at attractive valuation levels.
Growth Score
ModerateGEHCV shows steady but slowing expansion.
Financial Health Score
ModerateGEHCV shows balanced financial health with some risks.
Profitability Score
WeakGEHCV struggles to sustain strong margins.
Key Financial Metrics
Is GEHCV Expensive or Cheap?
P/E Ratio
GEHCV trades at 13.38 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GEHCV's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values GE HealthCare Technologies Inc. at 2.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.47 times EBITDA. This signals the market has high growth expectations.
How Well Does GEHCV Make Money?
Net Profit Margin
For every $100 in sales, GE HealthCare Technologies Inc. keeps $9.10 as profit after all expenses.
Operating Margin
Core operations generate 12.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.74 in profit for every $100 of shareholder equity.
ROA
GE HealthCare Technologies Inc. generates $5.14 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 $0.00, signaling weaker underlying cash strength.
Free Cash Flow
GE HealthCare Technologies Inc. generates weak or negative free cash flow of $-506.56M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.11 in free cash annually.
FCF Yield
GEHCV converts -1.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How GEHCV Stacks Against Its Sector Peers
| Metric | GEHCV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.38 | 28.62 | Better (Cheaper) |
| ROE | 18.74% | 783.00% | Weak |
| Net Margin | 9.10% | -44009.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 0.99 | 4.12 | Weak Liquidity |
| ROA | 5.14% | -21805.00% (disorted) | Weak |
GEHCV outperforms its industry in 2 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
17.94%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
30.40%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-2.19%
Industry Style: Defensive, Growth, Innovation
Declining