We initiate coverage on GE HealthCare, or GEHC, with a wide moat rating and a fair value estimate of $98 per share. We think it is an attractive long-term investment, and we believe the company’s stand-alone status will allow management to focus on research and development and ensure its position as one of the top three global leaders in the medical imaging market remains secure in the long run.
Now that it has been spun off, the company is able to focus on R&D and operational efficiency without competing internally with GE’s other business lines.
As a newly spun-off company, GEHC does not have a long track record of operating as a stand-alone company.
|
Metric
|
GEHC
|
PHIA
|
|---|---|---|
Price/Earnings (Normalized) | 20.18 | 18.56 |
Price/Book Value | 4.96 | 1.85 |
Price/Sales | 1.89 | 1.29 |
Price/Cash Flow | 17.46 | 27.02 |
|
Metric
|
GEHC
|
PHIA
|
|---|---|---|
Quick Ratio | 0.74 | 0.74 |
Current Ratio | 1.06 | 1.20 |
Interest Coverage | 5.25 | −1.60 |
|
Metric
|
GEHC
|
PHIA
|
|---|---|---|
Return on Assets (Normalized) | 5.62% | — |
Return on Equity (Normalized) | 25.69% | — |
Return on Invested Capital (Normalized) | 12.70% | — |
|
1-Day Chart
|
Name
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Price
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Morningstar Rating for Stocks
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Market Cap
|
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