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GE HealthCare Technologies Inc Common Stock GEHC

Morningstar Rating
$80.28 +0.34 (0.43%)
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Company Report

GE HealthCare: Initiating Coverage With Wide Moat Rating, FVE of $98; Shares Attractive

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.

Price vs Fair Value

GEHC is trading at a 87% premium.
Price
$80.28
Fair Value
$53.00
Uncertainty
Medium
1-Star Price
$577.90
5-Star Price
$39.80
Economic Moat
Fmgj
Capital Allocation
Bgmbhstb

Bulls Say, Bears Say

Bulls

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.

Bears

As a newly spun-off company, GEHC does not have a long track record of operating as a stand-alone company.

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News

Trading Information

Previous Close Price
$79.94
Day Range
$79.9481.33
52-Week Range
$62.3594.50
Bid/Ask
$80.28 / $80.73
Market Cap
$36.65 Bil
Volume/Avg
2.6 Mil / 2.7 Mil

Key Statistics

Price/Earnings (Normalized)
20.12
Price/Sales
1.89
Dividend Yield (Trailing)
0.15%
Dividend Yield (Forward)
0.15%
Total Yield
0.15%

Company Profile

GE HealthCare Technologies is a leading medical technology firm with leading market share in imaging and ultrasound equipment. The company reports four major segments: imaging (54% of revenue), ultrasound (18%), patient care solutions (16%), and pharmaceutical diagnostics (12%). The company’s sales are geographically diverse, with the United States, EMEA, China, and the rest of the world accounting for 44%, 26%, 14%, and 16% respectively. We estimate approximately half of its revenue is recurring, which consists of servicing (33% of revenue), pharmaceutical diagnostics (12%), and digital solutions (6%).
Sector
Healthcare
Industry
Health Information Services
Stock Style Box
Mid Core
Total Number of Employees
51,000

Competitors

Valuation

Metric
GEHC
PHIA
Price/Earnings (Normalized)
20.1219.24
Price/Book Value
4.951.92
Price/Sales
1.891.34
Price/Cash Flow
17.4128.01
Price/Earnings
GEHC
PHIA

Financial Strength

Metric
GEHC
PHIA
Quick Ratio
0.740.74
Current Ratio
1.061.20
Interest Coverage
5.25−1.60
Quick Ratio
GEHC
PHIA

Profitability

Metric
GEHC
PHIA
Return on Assets (Normalized)
5.62%
Return on Equity (Normalized)
25.69%
Return on Invested Capital (Normalized)
12.70%
Return on Assets
GEHC
PHIA
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