On the stock market since 1962, it operates in the world of heavy industry. It has 57,000 employees. Now — the numbers.
This is an established company with proven profits.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
An average decline of 5% a year over the last 4 years — the most striking risk in this picture. Red columns mark years that ended in a loss.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Clearly below the class average.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Clearly above the class average — a step short of the very top.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
The stock trades below its recent peak — about 10% off the top. A pullback, not a collapse.
The net profit margin is 19% — still a thick cushion, though costs have been eating into it lately.
Over the last 3 years, sales grew about 16% a year on average.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
The company’s market value is 43 times its annual profit. Even a small disappointment could hit the price hard.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 31/100.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 47/100.
On our five-subject report card, GE sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: GE is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
Analysts’ average target sits above today’s price, yet the valuation grade (31/100) says the stock isn’t cheap.