GE Aerospace (GE) AI Stock Analysis

• Market Cap: $266.49B
• Dividend Yield: 0.58%
• Average Volume (3M): 6.20M
• Price to Earnings (P/E): 39.0
• Beta (1Y): 1.32
• Revenue Growth: -42.92%
• EPS Growth: 109.75%
• Country: US
• Employees: 53,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 1.49
• Shares Outstanding: 1,066,386,600
• 10 Day Avg. Volume: 6,873,446
• 30 Day Avg. Volume: 6,200,286
• PEG Ratio: -1.67
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.05
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 1.97
• 1Y Price Target: $243.40
• Price Target Upside: -3.03% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 64 Neutral
• Price Target: $269.00 ▲(7.17%Upside)

GE Aerospace's strong financial performance and positive earnings call results are offset by technical indicators suggesting a potential pullback and a high P/E ratio indicating overvaluation. Strategic investments and robust order growth support future prospects, but attention is needed on cash flow and valuation metrics.

Positive Factors

Earnings Growth

Robust aftermarket services demand is expected to underpin one of the fastest earnings growth in the sector.

Market Presence

GE's engines are essential components on nearly every popular commercial jet, boasting significant market shares—67% of the current fleet and 72% of the order backlog.

Operational Capacity

GE Celma is expanding its capacity significantly with the LEAP buildout, which will nearly double its current capacity for shop visits by 2026.

Negative Factors

Contract Loss

The US Army is no longer planning to procure GE's T901 through the Improved Turbine Engine Program (ITEP) to re-engine Apaches and Black Hawks.

Macroeconomic Impact

A downturn in global air traffic due to macroeconomic weakness could negatively impact demand for aftermarket services.

Product Losses

Original Equipment losses are expected to widen from $250 million to $450 million, with GE9X performing worse than expected.

GE Aerospace Business Overview & Revenue Model

Company Description

General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also offers aftermarket services to support its products. The company operates in the United States, Europe, China, Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.

How the Company Makes Money

GE Aerospace generates revenue primarily through the sale of jet engines and related systems to aircraft manufacturers and airlines worldwide. Additionally, the company provides comprehensive maintenance, repair, and overhaul (MRO) services, which form a significant part of its revenue stream. Long-term service agreements with airlines and military contracts also contribute substantially to its earnings. Strategic partnerships and joint ventures with other aerospace firms enhance its technology offerings and market reach, further bolstering its financial performance.

GE Aerospace Financial Statement Overview

Summary

GE Aerospace demonstrates strong profitability and efficient operations with a solid income statement. The balance sheet reflects financial stability with low leverage, but cash flow growth presents challenges. Overall, the company is on a firm financial footing but requires attention to improve cash flow and asset utilization.

Income Statement

GE Aerospace shows a strong Gross Profit Margin of 38.1% in TTM, indicating effective cost management. The Net Profit Margin is also robust at 17.6%, reflecting solid profitability. Revenue Growth Rate from 2024 to TTM is 2.5%, suggesting moderate growth, while the EBIT and EBITDA Margins of 18.9% and 22.8% respectively, highlight efficiency in operations. Overall, the income statement demonstrates stability with room for growth.

Balance Sheet

The Debt-to-Equity Ratio in TTM is low at 0.11, which indicates low financial leverage and a strong equity base. The Return on Equity is healthy at 36.3%, showcasing effective use of equity to generate profits. The Equity Ratio stands at 15.5%, which suggests a stable financial structure but leaves room for improvement in asset management. Overall, the balance sheet reflects financial stability with controlled leverage.

Cash Flow

The Free Cash Flow Growth Rate from 2024 to TTM is negative at -21.1%, which could signal potential challenges in cash generation. However, the Operating Cash Flow to Net Income Ratio of 0.53 indicates adequate cash conversion. The Free Cash Flow to Net Income Ratio is 0.41, showing reasonable cash flow relative to net income. The cash flow statement reveals some concerns in growth but maintains operational cash adequacy.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.68B	38.70B	67.95B	58.10B	56.47B	75.83B
Gross Profit	15.12B	14.39B	12.41B	10.15B	13.09B	17.96B
EBITDA	9.83B	9.79B	13.38B	3.54B	3.38B	2.83B
Net Income	7.00B	6.56B	9.48B	339.00M	-6.34B	5.70B
Balance Sheet
Total Assets	124.12B	123.14B	163.04B	188.85B	198.87B	253.45B
Cash, Cash Equivalents and Short-Term Investments	13.40B	14.60B	22.67B	23.42B	28.07B	43.95B
Total Debt	19.57B	19.27B	22.94B	26.15B	35.19B	75.07B
Total Liabilities	104.66B	103.58B	134.47B	153.94B	157.26B	216.38B
Stockholders Equity	19.25B	19.34B	27.38B	33.70B	40.31B	35.55B
Cash Flow
Free Cash Flow	4.41B	3.68B	3.58B	4.74B	1.97B	194.00M
Operating Cash Flow	5.23B	4.71B	5.18B	5.92B	3.33B	3.60B
Investing Cash Flow	-2.79B	-1.67B	3.98B	2.27B	21.31B	16.64B
Financing Cash Flow	-8.81B	-6.73B	-8.61B	-5.58B	-45.18B	-19.85B

GE Aerospace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 251.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GE, the sentiment is Positive. The current price of 251 is above the 20-day moving average (MA) of 245.27, above the 50-day MA of 225.22, and above the 200-day MA of 195.70, indicating a bullish trend. The MACD of 5.18 indicates Positive momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 90.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GE.

GE Aerospace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMT	80 Outperform	$107.40B	19.88	82.55%	2.88%	3.12%	-15.29%
GD	79 Outperform	$76.74B	19.51	18.23%	2.10%	14.11%	17.65%
RTX	76 Outperform	$190.60B	41.46	7.54%	1.92%	15.11%	34.14%
NOC	74 Outperform	$70.08B	19.16	25.41%	1.90%	0.61%	77.28%
GE	64 Neutral	$266.49B	38.97	28.09%	0.58%	-42.92%	109.75%
Sector *	62 Neutral	C$6.38B	7.52	3.30%	3.17%	6.91%	-13.05%
BA	58 Neutral	$149.97B	―	-162.23%	―	-9.15%	-406.76%

GE Aerospace Corporate Events

GE Aerospace Shareholders Meeting Approves Key Proposals

On May 6, 2025, GE Aerospace held its annual shareholders meeting where all company nominees for director were elected, the advisory vote on executive compensation was approved, and Deloitte & Touche LLP was ratified as the independent auditor for 2025. However, a shareholder proposal requesting a vote on severance payments was not approved. These decisions reflect the company’s strategic direction and governance priorities, impacting its operational focus and stakeholder engagement.