General Electric Co (NYSE: GE)

Sector: Industrials Industry: Aerospace & Defense CIK: 0000040545
Market Cap 340.73 Bn
P/B 18.24
P/E 39.15
P/S 7.43
ROIC (Qtr) 18.85
Div Yield % 0.45
Rev 1y % (Qtr) 17.62
Total Debt (Qtr) 20.49 Bn
Debt/Equity (Qtr) 1.10

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 8.54B provides robust 0.42x coverage of total debt 20.49B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 12.39B provide 7.35x coverage of short-term debt 1.69B, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 116.88B provides 5.70x coverage of total debt 20.49B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 8.54B provides exceptional 10.13x coverage of interest expenses 843M, showing strong debt service capability.
  • Tangible assets of 116.88B provide exceptional 6.13x coverage of deferred revenue 19.06B, showing strong service capability backing.

Bear case

  • Operating cash flow of 8.54B barely covers its investment activities of (1.15B), with a coverage ratio of -7.40, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.15B) provide weak support for R&D spending of 1.58B, which is -0.73x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 8.54B provides thin coverage of dividend payments of (1.45B) with a -5.88 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 12.39B provide limited coverage of acquisition spending of (360M), which is -34.42x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 8.54B provides insufficient coverage of deferred revenue obligations of 19.06B, which is 0.45x, raising concerns about future service delivery capabilities.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Aerospace & Defense
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GE General Electric Co 340.73 Bn 39.15 7.43 20.49 Bn
2 RTX RTX Corp 266.41 Bn 39.57 3.01 39.51 Bn
3 BA Boeing Co 184.47 Bn 97.60 2.06 54.10 Bn
4 LMT Lockheed Martin Corp 145.11 Bn 28.92 1.93 21.70 Bn
5 HWM Howmet Aerospace Inc. 107.72 Bn 167.79 15.89 3.19 Bn
6 GD General Dynamics Corp 104.16 Bn 30.88 2.67 8.01 Bn
7 NOC Northrop Grumman Corp /De/ 101.77 Bn 24.33 2.43 17.02 Bn
8 TDG TransDigm Group INC 74.73 Bn 41.34 8.20 30.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.68 3.14
EV to Cash from Ops. EV/CFO 40.89 76.41
EV to Debt EV to Debt 17.03 80.89
EV to EBIT EV/EBIT 31.87 11.31
EV to EBITDA EV/EBITDA 35.66 30.07
EV to Free Cash Flow [EV/FCF] EV/FCF 47.25 86.36
EV to Market Cap EV to Market Cap 1.02 1.07
EV to Revenue EV/Rev 7.61 10.58
Price to Book Value [P/B] P/B 18.24 5.81
Price to Earnings [P/E] P/E 39.15 18.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 5.99 -3.22
Dividend Payout Ratio % Div Payout % (Qtr) 17.60 19.41
Dividend per Basic Share Div per Share (Qtr) 1.44 0.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 20.56 11.64
Interest Coverage Int. cover (Qtr) 12.99 -13.61
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -25.27 -65.17
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -9.01 1,593.29
Dividend Growth (1y) % Div 1y % (Qtr) 28.57 1.86
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 27.16 -43.11
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 46.46 19.42
EBIT Growth (1y) % EBIT 1y % (Qtr) 28.79 -34.51
EBT Growth (1y) % EBT 1y % (Qtr) 34.46 -35.59
EPS Growth (1y) % EPS 1y % (Qtr) 35.76 -112.67
FCF Growth (1y) % FCF 1y % (Qtr) 94.80 27.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 17.32 -0.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.35 0.51
Cash Payout Ratio Cash Payout (Qtr) 0.15 0.03
Cash Ratio Cash Ratio (Qtr) 0.32 1.78
Current Ratio Curr Ratio (Qtr) 1.04 3.63
Debt to Equity Ratio Debt/Equity (Qtr) 1.10 0.29
Interest Cover Ratio Int Coverage (Qtr) 12.99 -13.61
Times Interest Earned Times Interest Earned (Qtr) 12.99 -13.61
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 26.50 -345.58
EBIT Margin % EBIT Margin % (Qtr) 23.88 -382.34
EBT Margin % EBT Margin % (Qtr) 22.05 -387.64
Gross Margin % Gross Margin % (Qtr) 36.80 -33.21
Net Profit Margin % Net Margin % (Qtr) 19.00 -388.96