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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

GE
GSPC
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GE Aerospace (GE) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for GE Aerospace (GE) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

GE Aerospace (GE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEIndustry group median
1-Year Return40.45%25.11%

Risk

Drawdown

GE
GSPC
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GE Aerospace (GE) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

GE Aerospace (GE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEIndustry group median
1-Year Volatility31.61%41.58%
Beta1.371.19

Company Profile

Company profile fields for GE Aerospace (GE)
Profile ItemGE
NameGeneral Electric Company
Country/RegionUnited States
GICS SectorIndustrials
GICS Industry GroupCapital Goods
GICS IndustryIndustrial Conglomerates
GICS Sub-IndustryIndustrial Conglomerates
Market Capitalization350.33 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJanuary 2, 1962
Security TypeCommon 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
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Where GE Aerospace (GE) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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
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Where GE Aerospace (GE) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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
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Where GE Aerospace (GE) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

GE Aerospace (GE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEIndustry group median
Price-to-Earnings Ratio (TTM)41.6532.68
Price-to-Sales Ratio (TTM)7.252.70
Price-to-Book Ratio (MRQ)18.833.83
Free Cash Flow Yield1.62%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%
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Where GE Aerospace (GE) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where GE Aerospace (GE) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where GE Aerospace (GE) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

GE Aerospace (GE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEIndustry 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
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Where GE Aerospace (GE) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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
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Where GE Aerospace (GE) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

GE Aerospace (GE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEIndustry group median
Current Ratio (MRQ)1.012.12
Debt-to-Equity Ratio (MRQ)1.170.62
Net Debt / EBITDA0.972.03

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%
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Where GE Aerospace (GE) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where GE Aerospace (GE) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

GE Aerospace (GE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEIndustry group median
Dividend Yield (TTM)0.56%0.20%
Dividend Payout Ratio (TTM)19.25%6.03%