GE Aerospace (GE) Stock Analysis
Here is a fundamental analysis of GE Aerospace (GE), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: GE | Industry group median |
|---|---|---|
| 1-Year Return | 40.45% | 25.11% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: GE | Industry group median |
|---|---|---|
| 1-Year Volatility | 31.61% | 41.58% |
| Beta | 1.37 | 1.19 |
Company Profile
| Profile Item | GE |
|---|---|
| Name | General Electric Company |
| Country/Region | United States |
| GICS Sector | Industrials |
| GICS Industry Group | Capital Goods |
| GICS Industry | Industrial Conglomerates |
| GICS Sub-Industry | Industrial Conglomerates |
| Market Capitalization | 350.33 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | January 2, 1962 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
GE Aerospace (GE) trades at P/E ratio of 41.65, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
GE
Capital Goods industry group
41.65
Group distribution
- Max
- 89.57
- Q3
- 49.59
- GE
- 41.65
- Median
- 32.68
- Q1
- 22.67
- Min
- 6.05
Largest peers
- BA
- 86.92
- CAT
- 45.26
- GE
- 41.65
- ETN
- 38.30
- RTX
- 34.50
- DE
- 32.68
- GEV
- 27.47
Price-to-Sales Ratio (TTM)
GE Aerospace (GE) trades at 7.25 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
GE
Capital Goods industry group
7.25
Group distribution
- Max
- 10.21
- GE
- 7.25
- Q3
- 4.95
- Median
- 2.70
- Q1
- 1.31
- Min
- 0.05
Largest peers
- GE
- 7.25
- GEV
- 6.42
- CAT
- 5.93
- ETN
- 5.33
- DE
- 3.29
- RTX
- 2.73
- BA
- 1.87
Price-to-Book Ratio (MRQ)
GE Aerospace (GE) trades at 18.83 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
GE
Capital Goods industry group
18.83
Group distribution
- GE
- 18.83
- Max
- 14.00
- Q3
- 7.07
- Median
- 3.83
- Q1
- 2.13
- Min
- -4.80
Largest peers
- BA
- 28.86
- CAT
- 22.48
- GE
- 18.83
- GEV
- 18.16
- ETN
- 7.71
- DE
- 5.69
- RTX
- 3.73
Valuation at a Glance
| Metric | Current stock: GE | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 41.65 | 32.68 |
| Price-to-Sales Ratio (TTM) | 7.25 | 2.70 |
| Price-to-Book Ratio (MRQ) | 18.83 | 3.83 |
| Free Cash Flow Yield | 1.62% | 2.07% |
Profitability
Return on Equity (TTM)
GE Aerospace (GE) posts ROE of 45.43%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
GE
Capital Goods industry group
45.43%
Group distribution
- Max
- 46.13%
- GE
- 45.43%
- Q3
- 20.05%
- Median
- 11.19%
- Q1
- 2.17%
- Min
- -23.78%
Largest peers
- BA
- 169.95%
- GEV
- 75.71%
- CAT
- 51.33%
- GE
- 45.43%
- ETN
- 20.85%
- DE
- 18.35%
- RTX
- 11.57%
Net Profit Margin (TTM)
GE Aerospace (GE) keeps 17.86% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
GE
Capital Goods industry group
17.86%
Group distribution
- Max
- 24.69%
- GE
- 17.86%
- Q3
- 11.55%
- Median
- 5.77%
- Q1
- 0.30%
- Min
- -13.94%
Largest peers
- GEV
- 23.81%
- GE
- 17.86%
- ETN
- 13.99%
- CAT
- 13.33%
- DE
- 10.10%
- RTX
- 8.03%
- BA
- 2.46%
Operating Profit Margin (TTM)
GE Aerospace (GE) turns 20.21% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
GE
Capital Goods industry group
20.21%
Group distribution
- Max
- 29.84%
- GE
- 20.21%
- Q3
- 15.85%
- Median
- 8.19%
- Q1
- 1.80%
- Min
- -17.50%
Largest peers
- GE
- 20.21%
- CAT
- 18.18%
- DE
- 17.48%
- ETN
- 16.11%
- RTX
- 13.18%
- GEV
- 5.46%
- BA
- 1.72%
Profitability at a Glance
| Metric | Current stock: GE | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 45.43% | 11.19% |
| Return on Assets (TTM) | 4.85% | 5.15% |
| Net Profit Margin (TTM) | 17.86% | 5.77% |
| Operating Profit Margin (TTM) | 20.21% | 8.19% |
| Gross Profit Margin (TTM) | 31.15% | 29.80% |
Financial Strength
Current Ratio (MRQ)
GE Aerospace (GE) has current ratio of 1.01, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
GE
Capital Goods industry group
1.01
Group distribution
- Max
- 5.24
- Q3
- 2.98
- Median
- 2.12
- Q1
- 1.45
- GE
- 1.01
- Min
- 0.71
Largest peers
- DE
- 2.21
- CAT
- 1.35
- ETN
- 1.19
- BA
- 1.18
- RTX
- 1.02
- GE
- 1.01
- GEV
- 0.89
Debt-to-Equity Ratio (MRQ)
GE Aerospace (GE) has debt-to-equity ratio of 1.17, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.
GE
Capital Goods industry group
1.17
Group distribution
- Max
- 2.29
- GE
- 1.17
- Q3
- 1.08
- Median
- 0.62
- Q1
- 0.27
- Min
- 0.00
Largest peers
- BA
- 8.29
- DE
- 3.76
- CAT
- 2.31
- GE
- 1.17
- ETN
- 1.10
- RTX
- 0.57
- GEV
- 0.25
Financial Strength at a Glance
| Metric | Current stock: GE | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.01 | 2.12 |
| Debt-to-Equity Ratio (MRQ) | 1.17 | 0.62 |
| Net Debt / EBITDA | 0.97 | 2.03 |
Dividends
Dividend Yield (TTM)
GE Aerospace (GE) has dividend yield of 0.56%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
GE
Capital Goods industry group
0.56%
Group distribution
- Max
- 2.69%
- Q3
- 1.09%
- GE
- 0.56%
- Median
- 0.20%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 1.51%
- DE
- 1.12%
- ETN
- 1.12%
- CAT
- 0.72%
- GE
- 0.56%
- GEV
- 0.21%
- BA
- 0.00%
Dividend Payout Ratio (TTM)
GE Aerospace (GE) has payout ratio of 19.25%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
GE
Capital Goods industry group
19.25%
Group distribution
- Max
- 72.02%
- Q3
- 29.49%
- GE
- 19.25%
- Median
- 6.03%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 51.03%
- ETN
- 41.29%
- DE
- 36.71%
- CAT
- 29.58%
- GE
- 19.25%
- GEV
- 5.11%
- BA
- 0.00%
Dividends at a Glance
| Metric | Current stock: GE | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.56% | 0.20% |
| Dividend Payout Ratio (TTM) | 19.25% | 6.03% |