General Electric Co (GE) stock analysis

P/E above its 5-year median

General Electric's P/E of 39.0 is above its own 5-year median of 36.8.

P/E above the industry

General Electric's P/E of 39.0 is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 32.5.

EV/EBITDA above its 5-year median

General Electric's EV/EBITDA of 31.2 is above its 5-year median of 29.9.

P/B above the industry

General Electric's price-to-book of 19.93 is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 3.01.

Trading above fair value

The share price of $337.91 is above our fair value estimate of $288.21.

Margin of safety under 20%

The price is 17.2% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 16.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 446% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 12.9% over the last twelve months, against a 5-year average of 8.8% a year.

Growing faster than the industry

Revenue grew 19.6% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is 12.4%.

Guidance lowered

General Electric lowered its In 2026 operating profit outlook on Jul 16, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 50.1% over the last twelve months and averaged 17.8% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

General Electric's return on equity of 50.1% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 0.4%.

Earnings grew over 5 years

Net income grew 8.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 17.3% over the last twelve months, against a 5-year average of 10.5%.

Net margin above the industry

General Electric's net margin of 17.3% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -0.2%.

High debt

Debt is 110% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 211% five years ago to 110%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 48.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.98 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.34; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

General Electric paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; General Electric yields 0.5%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.