_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
General Electric Company (XNYS:GE) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
GE
Name:
GENERAL ELECTRIC COMPANY (XNYS:GE)
Sector:
- 919000.00K
Industry:
Specialty Industrial Machinery
CEO:
Mr. H. Lawrence Culp
Total Employees:
168,000
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 40.46% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF GENERAL ELECTRIC COMPANY(GE) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SPECIALTY INDUSTRIAL MACHINERY INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
72.43
One Month Price Target:
$72.88
Six Month Price Target :
$75.12
Likely Price in One Year's Time:
Ticker:
$77.81
Likely Trading Range Today Under (Normal Volatility)
$72.08
Price Upper limit ($) :
$72.8
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$68.06
This week:
$62.66
This month :
$52.88
Other Primary facts
Market Cap:
79.14B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
1.10B
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
14.73%
-15.16%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$92.72
$83.47
$52.14
$61.39
Medium risk (<10%) entry points
Buy Call
Sell Call
$80.46
Buy Put:
Sell Put:
$78.49
$64.37
$66.37
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
GE
Sharpe Ratio:
0.23%
Comparison:
GE, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -88.10% lower than the industry
& is -90.11% lower than the market/S&P 500 average
Average Returns/Yield of
GE
Daily returns:
0.02%
Weekly returns:
0.08%
Monthly returns:
0.31%
Yearly returns:
16.25%
Comparison of returns:
Average annual returns/yield (last 3 years) is -77.12% below industry average
Classification:
GE, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.42
Statistical test of Returns:
GE has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.95%
Weekly Volatility:
6.59%
Monthly Volatility:
13.18%
Yearly Volatility:
45.64%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.75%
Volatility in last five trading days has been -74.44% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.04%
Weekly VaR:
-13.50%
Monthly VaR:
-26.99%
How Much Can the price of
GE
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-24%
Worst case (decline):
-93.50%
This translates to price declining to:
$55.27
This translates to price declining to:
$4.71
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
GE is a 90.50% riskier investment compared to the market/S&P 500 & is 63.20% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 7.69% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
GE
Beta in relation to market/S&P 500--1.10
Expected beta in 1 year's time:
0.995
Expected beta in 3 year's time:
1.407
Unlevered (debt free) Beta:
0.651
Beta in relation to Nasdaq (XNAS):
0.807
Beta in relation to all global stocks::
0.807
Beta Comparison & Analysis
Beta of competitors/peers::
1.079
Beta is 2.36% higher than peers
Average Industry Beta:
1.281
Beta is -13.79% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
-0.070
Alpha is -262.01% below industry average alpha yield
Alpha is -446% below the market average
Analysis of Cost of Capital of
GE
Equity cost of capital:
0.107
Equity cost of capital is -10.15% below industry mean WACC
Unlevered (without debt) cost of capital:
6.31%
Before-tax cost of debt:
5.69%
After-tax cost of debt:
4.50%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
4.50%
WACC is -75.13% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$67.59
Revenue growth rate per share of (3Y):
1.97
Annual revenue growth rate is -293.82% below industry average
EPS:
-$4.54
Expected Annual growth rate of EPS (3Y):
-13.05%
Expected future EPS growth rate is -528.06% lower than the Specialty Industrial Machinery industry
Free cash flow (FCF) per share:
$3.07
Balance sheet equity growth per share: -87.28%
Equity growth rate per share is -908.62% lower than the industry
Debt per share
$26.13
EBITDA per share
$0.61
Valuation Analysis Today of
GE
P/E Ratio:
0
P/E Ratio of Competitors/Peers:
18.59
P/E ratio is -100.00% lower than main peers & is higher than the industry
-
GE is -157.98% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $9.39
Present value of the expected future dividends only: $2.99
P/S (Price to Sales ratio):
1.07
Price to sales ratio is -74.18% below the industry mean
P/B (Price to book value ratio):
1.97
Price to free cash flow: 23.60
-
Net income growth rate (3Y):
-71.14%
Net income growth rate is -5385.48% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: -2.94%
Dividend yeild: 0.44%
Previous Dividend: $0.08
Previous adjusted dividend: $0.08
Previous Dividend: $0.32
-
-
Average dividend payment (long-term): $0.08
Average dividend increase/decrease (growth rate) % per period: 0.00%
Expected next dividend payment date: 24/10/2022
Expected next dividend record date: 26/09/2022
-
Previous dividend payment date: 25/07/2022
Previous dividend record date: 28/06/2022
-
Dividend History:
2022-06-27--$0.08
2021-12-20--$0.08
2021-06-25--$0.01
2022-03-07--$0.08
2021-09-24--$0.08
2021-03-05--$0.01
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
73.45%
Net debt to equity ratio:
53.31%
Debt to assets ratio:
14.92%
Net debt to assets ratio:
10.83%
Debt-to-asset ratio is -72.34% below industry average
Ability to repay debt:
Interest coverage ratio:
0.35
Interest coverage ratio is -98.20% less than industry average
Looking forward:
Debt growth rate:
-49.34%
Annual debt growth is -166% lower than industry average debt growth rate
Debt repayment rate in last quarter: 4.24%
Analysis of Key Statistics
Correlation of price movement with the market:
0.635
Statistical significance of correlation:
GE has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.635
Stock price is -0.04% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.635
Correlation of price movement with Nasdaq (^IXIC):
0.033
Covariance of price movement with the market:
0.056
Kurtosis
4.077
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.026
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
GE
Gross Profit Margin Ratio:
109%
Operating Profit Margin Ratio:
3.93%
Operating profit margin is -116.22% lower than the industry
Net Profit Margin Ratio:
109%
Effective Tax Rate:
5.02%
Effective tax rate is -73.15% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-12.20%
Return on equity (ROE) is -463.12% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-2.48%
Return on assets (ROA) is -152.82% lower than the industry
Financial Leverage:
1.2x
Current Ratio:
1.19
Current ratio is -60.72% below industry average
Cash Conversion Cycle (days):
17.4
Cash conversion cycle is -71.73% below industry average
The remaining useful life of property plant & equipment is: 3.9 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
441.2K
Each employee generates -89% less revenue than industry average revenue per employee
EBITDA generated per employee:
4.0K
Each employee generates -99% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 28.3K
Each employee generates -107% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 5.5K
Each employee generates -111% less free cash flow than industry average revenue per employee
Assets/Capital per employee
765.8K
Each employee generates -111% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -2.65%
Growth rate in R&D investment/expenditure is -124.56% lower than the industry
Competitors/Peer firms of
GE
DEERE & COMPANY (XNYS:DE)
3M COMPANY (XNYS:MMM)
CATERPILLAR INC. (XNYS:CAT)
THE BOEING COMPANY (XNYS:BA)
RAYTHEON TECHNOLOGIES CORPORATION (XNYS:RTX)
Canadian National Railway Company (XNYS:CNI)
ILLINOIS TOOL WORKS INC. (XNYS:ITW)
HONEYWELL INTERNATIONAL INC. (XNAS:HON)
NORFOLK SOUTHERN CORPORATION (XNYS:NSC)
Current Analyst Ratings
Strong buy�21%
Buy�8%
Hold�25%
Sell�13%
Strong sell�4%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
74.12B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
53.81B
20.31B
2.58B
14.70B
14.70B
-
119.00M
17.40B
1.83B
1.91B
3.74B
673.00M
2.91B
- 4759000.00K
- 4445000.00K
- 223000.00K
- 4759000.00K
Statement of Cash Flow
Date:
Period:
1.49B
Differed Income Tax :
204.00M
Stock Based Compensation :
-
Change in Working Capital :
- 976000.00K
Accounts Receivables:
- 749000.00K
Other Working Capital:
246.00M
Other Non-Cash Items:
- 255000.00K
Net Cash Provided by Operating Activities:
- 556000.00K
Investments in PP&E:
- 340000.00K
Net Acquisitions:
1.30B
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
12.84B
10.78B
23.62B
20.30B
16.57B
2.81B
63.30B
15.04B
26.05B
8.29B
39.85B
10.58B
28.86B
128.66B
-
191.96B
16.21B
4.99B
-
-
32.15B
53.35B
28.65B
67.73B
98.33B
-
151.68B
15.00M
83.93B
1.3B
- 46284000.00K
March 31, 2022 at 6:00:00 AM
71.21B
39.01B
190.68B
50.62B
33.63B
20.8B
-
- 1406000.00K
- 444000.00K
- 1268000.00K
-
-
- 140000.00K
- 51000.00K
- 1459000.00K
- 75000.00K
- 3223000.00K
13.64B
16.86B
- 556000.00K
- 363000.00K
- 919000.00K
Our Proprietary Portfolio Rating
Our Rating:
A
Price Forecast/Expected Price in Next 5 Years of
GE
2023
2024
2025
2026
2027
$78.20
$53.43
$57.40
$61.66
$66.24