GE HealthCare Technologies Inc. (GEHC) stock analysis
Close on Nov 13, 2026Market cap $37.54BP/E 17.5Yield 0.17%
StockData Score
Prices as of Nov 13, 2026How the score works
Solid15 of 30 checks passed
GE HealthCare Technologies passes 15 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 5/6
- Growth
- 1/6
- Past performance
- 4/6
- Financial health
- 2/6
- Dividend
- 3/6
What stands out
Trading below fair value
The share price of $83.02 is below our fair value estimate of $90.37.
Return on equity over 15%
Return on equity was 19.9% over the last twelve months and averaged 21.8% over five years.
Return on capital over 10%
Return on invested capital was 12.4%, above the 10% that usually covers the cost of capital.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 24.2% of total debt.
What to watch
Margin of safety under 20%
The price is 8.1% below fair value, less than the 20% cushion we look for.
High debt
Debt is 85.9% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew 4.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew 2.5% a year over the last three fiscal years.
Valuation5/6
P/E below its 5-year median
GE HealthCare Technologies's P/E of 17.5 is below its own 5-year median of 18.7.
P/E below the industry
GE HealthCare Technologies's P/E of 17.5 is below the Surgical, Medical, and Dental Instruments and Supplies median of 26.8.
EV/EBITDA below its 5-year median
GE HealthCare Technologies's EV/EBITDA of 15.5 is below its 5-year median of 16.4.
P/B below the industry
GE HealthCare Technologies's price-to-book of 3.23 is below the Surgical, Medical, and Dental Instruments and Supplies median of 3.38.
Trading below fair value
The share price of $83.02 is below our fair value estimate of $90.37.
Margin of safety under 20%
The price is 8.1% below fair value, less than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew 4.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew 2.5% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 6.9% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 10.6%.
Guidance raised
GE HealthCare Technologies raised its full-year 2026 Organic Revenue Growth* outlook on Oct 28, 2026.
Gross margin slipping
Gross margin was 39.9% over the last twelve months, against 40.8% a year earlier.
Past performance4/6
Return on equity over 15%
Return on equity was 19.9% over the last twelve months and averaged 21.8% over five years.
Return on capital over 10%
Return on invested capital was 12.4%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
GE HealthCare Technologies's return on equity of 19.9% is above the Surgical, Medical, and Dental Instruments and Supplies median of -30.1%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was 10.0% over the last twelve months, against a 5-year average of 10.3%.
Net margin above the industry
GE HealthCare Technologies's net margin of 10.0% is above the Surgical, Medical, and Dental Instruments and Supplies median of -12.9%.
Financial health2/6
High debt
Debt is 85.9% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 24.2% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 1.30 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 1.99; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
GE HealthCare Technologies paid dividends worth 0.2% of the share price over the last twelve months.
Yield below Treasuries
The 0.2% yield is below the 4.7% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; GE HealthCare Technologies yields 0.2%.
Dividend stability
Fewer than five years of dividend history.
Covered by earnings
Dividends take 3.0% of net income.
Covered by free cash flow
Dividends take 3.4% of free cash flow.
Fair value
How we estimate itOur estimate per share
$90.37
The share price is 8% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 23.7× | 18.7× | 26.8× | $112.50 | 40% |
| EV/EBITDA | 16.4× | 16.4× | 16.4× | $88.90 | 35% |
| P/B | 3.6× | 4.1× | 3.4× | $93.45 | 10% |
| Earnings power | 10.7% cost of equity | – | – | $32.74 | 15% |
| Fair value | $90.37 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 18.7
- Surgical, Medical, and Dental Instruments and Supplies median 26.8
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $309.28M
- Value traded per 1% price move
- $190.56M
Downside
Medium risk
- Typical loss in a bad month
- 16.7%
- Volatility (annualized)
- 36%
- Sharpe ratio, 1 year
- 0.17
- Beta to the S&P 500 (5Y)
- 1.13
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2020 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +4.8% | +4.0% | – | – | |
| Gross profit | +0.5% | +4.7% | – | – | |
| Operating income | +5.3% | +3.1% | – | – | |
| Net income | +4.6% | +2.8% | – | – | |
| EPS, diluted | +4.8% | +2.5% | – | – | |
| Free cash flow | -3.2% | -6.2% | – | – | |
| Dividend per share | +12.0% | – | – | – |
Returns and balance sheet
6 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2020 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 22.1% | |
| Return on assets | – | – | 6.0% | |
| Current ratio | – | – | 1.37 | |
| Debt to equity | – | – | 1.01 | |
| Inventory turnover | – | – | 5.9× | |
| Capex to revenue | – | – | 2.3% | |
| Diluted shares | – | – | 458M |
Where the cash went
Fiscal 2021 to 2025, five years combined
GE HealthCare Technologies generated $9.78B from operations and spent $2.19B on capital expenditure, dividends and share buybacks. 84% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 10.1% | 0.59× | 3.72× | 22.1% |
| FY2024 | 10.1% | 0.60× | 4.21× | 25.6% |
| FY2023 | 8.0% | 0.65× | 3.64× | 19.0% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$2.08B
- Cash generatingOperating cash flow above zero$1.99B
- Return on assets improvedROA up on the prior year6.1% → 6.3%
- Earnings backed by cashOperating cash flow above net income$1.99B vs $2.08B
- Less leverageLong-term debt to assets fell22.5% → 25.7%
- Better liquidityCurrent ratio rose1.04 → 1.37
- No dilutionShare count did not rise459M → 458M
- Gross margin improvedGross margin up on the prior year41.71% → 39.99%
- More efficientAsset turnover rose0.61 → 0.62
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