Skip to Content

General Electric Co GE

Morningstar Rating
$169.91 +1.02 (0.60%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

GE: GE Aerospace Exhibits Continued Strength as Vernova Spinoff Is Imminent

GE Aerospace held its investor day on March 7. Following our review of the materials and the presentation, we’re not materially altering our forecast, though we are front-end loading the timing of cash flows. These small changes, coupled with the time value of money since our last forecast, positively impact our valuation by $1 each. Consequently, our fair value estimate rises to $156 from $154 previously. Embedded in our DCF valuation is our conviction that GE Aerospace will be worth nearly $140 billion, while GE Vernova will be worth nearly $35 billion on an equity value basis. We point out that GE Vernova’s balance sheet will be in a net cash position (meaning Vernova will receive a cash contribution from GE but no debt).

Price vs Fair Value

GE is trading at a 9% premium.
Price
$169.91
Fair Value
$341.00
Uncertainty
Medium
1-Star Price
$886.80
5-Star Price
$442.80
Economic Moat
Plgnm
Capital Allocation
Qwnhglrvyd

Bulls Say, Bears Say

Bulls

Bears vastly underestimate the incremental profits GE will make from operating leverage when commercial aerospace fully recovers, as well as the windfall from the Inflation Reduction Act.

Bears

GE's turnaround has a lot of unknowns, including when renewables will finally reach profitability and when the Inflation Reduction Act will move toward full implementation.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if GE is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$168.89
Day Range
$168.58170.75
52-Week Range
$89.41175.81
Bid/Ask
$169.56 / $170.30
Market Cap
$185.76 Bil
Volume/Avg
564 / 5.6 Mil

Key Statistics

Price/Earnings (Normalized)
60.68
Price/Sales
2.75
Dividend Yield (Trailing)
0.19%
Dividend Yield (Forward)
0.19%
Total Yield
0.84%

Company Profile

GE was formed through the combination of two companies in 1892, including one with historical ties to American inventor Thomas Edison. Today, GE is a global leader in air travel and in the energy transition. The company is known for its differentiated technology and its massive industrial installed base of equipment sprawled throughout the world. That installed base most notably includes aerospace engines, gas and steam turbines, and onshore and offshore wind turbines. GE earns most of its profits on the service revenue of that equipment, which is generally higher-margin. The company is led by Danaher alumnus Larry Culp, who is leading GE through a breakup of its businesses.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Large Growth
Total Number of Employees
125,000

Competitors

Valuation

Metric
GE
RR.
ENR
Price/Earnings (Normalized)
60.6827.0952.32
Price/Book Value
6.751.21
Price/Sales
2.751.990.40
Price/Cash Flow
47.4923.89
Price/Earnings
GE
RR.
ENR

Financial Strength

Metric
GE
RR.
ENR
Quick Ratio
0.790.690.55
Current Ratio
1.181.220.92
Interest Coverage
9.457.13−3.48
Quick Ratio
GE
RR.
ENR

Profitability

Metric
GE
RR.
ENR
Return on Assets (Normalized)
1.85%3.80%−8.16%
Return on Equity (Normalized)
10.11%−37.82%
Return on Invested Capital (Normalized)
6.27%147.07%−24.60%
Return on Assets
GE
RR.
ENR
See how this stock stacks up to its competitors with Morningstar Investor

Specialty Industrial Machinery Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
SIEGY
Siemens AG ADRFmnwt$157.8 Bil
ETN
Eaton Corp PLCHhmbc$119.5 Bil
ITW
Illinois Tool Works IncMpcgyp$79.1 Bil
PH
Parker Hannifin CorpGtxbm$68.9 Bil
EMR
Emerson Electric CoXtrm$63.5 Bil
OTIS
Otis Worldwide Corp Ordinary SharesRfdqv$39.8 Bil
CMI
Cummins IncMdlwsb$39.0 Bil
IR
Ingersoll Rand IncTqvfyt$36.8 Bil
ROK
Rockwell Automation IncLwmw$31.9 Bil

Sponsor Center