About GE Aerospace
General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and aircraft systems. The company operates through two segments, Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial Engines & Services segment designs, develops, manufactures, maintenance, repair, and overhaul (MRO) services of jet engines and sale of spare parts for commercial airframes, business aviation, and aeroderivative applications. The Defense & Propulsion Technologies designs, develops, manufactures, and services jet engines and avionics and power systems for governments, militaries, and commercial airframers, as well as MRO of engines and the sale of spare parts. This segment also offers aircraft components and systems, such as small turboprop engines, aeroengine mechanical transmissions, turbines, combustors and controls, additive manufacturing, propeller systems, ignition systems, sensors and engine accessories for fixed wing and rotorcraft applications for commercial and military end users under the Avio Aero, Unison, Dowty Propellers, and Colibrium Additive brands. The company operates in the United States, Europe, Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.
GE Aerospace (GE) is a Industrials company in the Aerospace & Defense industry with a market capitalisation of $335.8B. The stock trades at 38.17x trailing earnings and yields 0.58%.
- Sector
- Industrials
- Industry
- Aerospace & Defense
- Market cap
- $335.8B
- P/E ratio
- 38.17
- Forward P/E
- 35.60
- EPS (TTM)
- $8.48
- Revenue (TTM)
- $50.6B
- Free cash flow
- $6.6B
- Profit margin
- 17.7%
- Dividend yield
- 0.58%
- Beta
- 1.35
- Shares outstanding
- 1B
Financial health: Fair7.3/10
7 strengths, 2 concerns. Weakest points: debt to equity, peg ratio.
- Debt to equity: 1.10 (Concern, benchmark < 0.5) — Debt of 1.10x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 1.1y (Strong, benchmark < 4 years) — Net debt of $8.1B is 1.1x annual free cash flow — about a year of cash flow to repay.
- Current ratio: 1.04 (Watch, benchmark > 1.5) — Short-term assets cover 1.04x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
- Return on equity: 48.2% (Strong, benchmark > 15%) — Earns 48.2% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 31.1% (Watch, benchmark > 40%) — Keeps 31.1% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 17.7% (Strong, benchmark > 10%) — Turns 17.7% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $7.3B (Strong, benchmark positive) — Generated $7.3B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 21.1% (Strong, benchmark > 10%) — Revenue changed 21.1% year on year, comfortably past the > 10% mark.
- Earnings growth: 19.4% (Strong, benchmark > 10%) — Earnings changed 19.4% year on year, comfortably past the > 10% mark.
- PEG ratio: 4.12 (Concern, benchmark < 1) — At 4.12, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 19.6% (Strong, benchmark < 60%) — Pays out 19.6% of earnings as dividends, leaving room to keep paying.