GE Healthcare Technologies Inc (GEHC) AI Stock Analysis

• Market Cap: $29.72B
• Dividend Yield: 0.2%
• Average Volume (3M): 4.69M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.26
• Revenue Growth: 0.61%
• EPS Growth: 43.28%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 70
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 4.34
• Shares Outstanding: 457,298,300
• 10 Day Avg. Volume: 6,764,648
• 30 Day Avg. Volume: 4,685,451
• PEG Ratio: 0.35
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.89
• Price to Cash Flow (P/CF): 10.20
• P/FCF Ratio: 9.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $100.44
• Price Target Upside: 61.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

GE Healthcare Technologies Inc demonstrates strong financial performance with solid profitability and a stable balance sheet, but faces challenges in technical analysis with a bearish trend. The valuation is reasonable, although the low dividend yield might deter income-focused investors. The earnings call provided a positive outlook, with planned growth and strategic initiatives. Overall, the stock is positioned moderately well, with significant strengths in financial performance and future growth potential offset by current technical weaknesses.

Positive Factors

Financial Performance

Record order growth and a surprise uplift in China orders in 4Q demonstrated untapped upside potential.

Market Position

Feedback reinforces GEHC as a top large-cap pick in the space.

Product Launch

The receipt of CMS pass-through status is viewed as a positive for the launch of Flyrcado.

Negative Factors

Sales Performance

China sales are expected to be negative in the first half of FY25, impacting the overall performance.

Supply Chain Risk

Retaliatory actions by China could disrupt GEHC’s supply chain, particularly with limitations on exports of rare elements used in some products.

Trade Relations

GE HealthCare is more exposed to the US/China trade war than other medical technology companies.

GE Healthcare Technologies Inc Business Overview & Revenue Model

Company Description

GE HealthCare Technologies Inc. engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, Europe, the Middle East, Africa, China, Taiwan, Mongolia, Hong Kong, and internationally. The company operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging segment offers molecular imaging, computed tomography (CT) scanning, magnetic resonance (MR) imaging, image-guided therapy, and X-ray systems, as well as women's health products. The Ultrasound segment provides screening, diagnosis, treatment, and monitoring of certain diseases through radiology and primary care, women's health, cardiovascular, and point of care and handheld ultrasound solutions, as well as surgical visualization and guidance products. The Patient Care Solutions segment involved in the provision of medical devices, consumable products, services, and digital solutions through patient monitoring, anesthesia delivery and respiratory care, diagnostic cardiology, and maternal infant care products. The Pharmaceutical Diagnostics supplies diagnostic agents, including CT, angiography and X-ray, MR, single-photon emission computed tomography, positron emission tomography, and ultrasound to the radiology and nuclear medicine industry. The segment also provides contrast media pharmaceuticals, administered to a patient prior to certain diagnostic scans to increase the visibility of tissues or structures during imaging exams; and molecular imaging agents, or radiopharmaceuticals, which are molecular tracers labeled with radioisotopes that are injected into a patient prior to a diagnostic imaging scan. The company was incorporated in 2022 and is headquartered in Chicago, Illinois.

How the Company Makes Money

GE Healthcare Technologies Inc makes money through the sale and service of its medical devices and technologies across different healthcare sectors. Its key revenue streams include the sale of diagnostic imaging equipment such as MRI and CT machines, ultrasound devices, and life care solutions like patient monitors and anesthesia systems. The company also generates revenue from providing digital solutions that improve healthcare data management and operational workflows. Additionally, GEHC earns from service contracts, maintenance agreements, and software subscriptions. Strategic partnerships with hospitals, clinics, and research institutions further augment its earnings by expanding its market reach and enhancing product offerings.

GE Healthcare Technologies Inc Financial Statement Overview

Summary

GE Healthcare Technologies Inc shows robust financial health with strong profitability and reduced debt levels, evidenced by improved profit margins and a significant debt reduction. The consistent revenue growth is a strength, though cash flow issues need monitoring.

Income Statement

GE Healthcare Technologies Inc has demonstrated strong financial performance with a consistent growth in revenue, achieving a revenue growth rate of approximately 0.61% from 2023 to 2024. The gross profit margin is healthy at around 41.7% for 2024, indicating efficient cost management. The net profit margin improved to 10.1%, up from 8% the previous year, which reflects increased profitability. Both EBIT and EBITDA margins are robust at around 13.3%, suggesting strong operational efficiency and earnings power.

Balance Sheet

The balance sheet of GE Healthcare Technologies Inc reveals a stable financial position with an equity ratio of 25.5% for 2024, which suggests a balanced capital structure. The company has significantly reduced its total debt to $1.502 billion from $9.863 billion in 2023, improving its debt-to-equity ratio to 0.18. Return on Equity (ROE) is strong at 23.6%, reflecting efficient utilization of shareholder funds. However, the lower equity ratio could indicate reliance on liabilities for financing.

Cash Flow

The cash flow situation shows some concerns, as the operating cash flow for 2024 is recorded as zero, possibly due to timing issues or accounting adjustments. The free cash flow decreased to -$401 million from $1.714 billion in 2023, indicating reduced cash available after capital expenditures. Despite this, the company has historically maintained positive free cash flow, which is a positive indicator for long-term sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.67B	19.55B	18.34B	17.59B	17.16B
	Gross Profit
8.21B	7.92B	7.18B	7.17B	6.77B
	EBIT
2.63B	2.44B	2.52B	2.79B	2.72B
	EBITDA
3.67B	3.51B	3.17B	3.54B	3.41B
	Net Income Common Stockholders
1.99B	1.57B	1.92B	2.25B	2.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.89B	2.49B	1.45B	554.00M	994.00M
	Total Assets
33.09B	32.45B	27.54B	26.31B	24.23B
	Total Debt
1.50B	9.86B	8.25B	437.00M	468.00M
	Net Debt
-1.39B	7.37B	6.80B	-117.00M	-526.00M
	Total Liabilities
24.44B	25.14B	18.18B	9.63B	9.48B
	Stockholders Equity
8.45B	7.13B	9.36B	16.66B	14.73B
Cash Flow		Free Cash Flow
1.55B	1.71B	1.80B	1.36B	1.43B
	Operating Cash Flow
1.95B	2.10B	2.11B	1.61B	1.69B
	Investing Cash Flow
-914.00M	-558.00M	-398.00M	-1.76B	19.99B
	Financing Cash Flow
-573.00M	-478.00M	-822.00M	-263.00M	-21.54B

GE Healthcare Technologies Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEHC, the sentiment is Negative. The current price of 62.28 is below the 20-day moving average (MA) of 74.96, below the 50-day MA of 82.68, and below the 200-day MA of 83.98, indicating a bearish trend. The MACD of -1.74 indicates Positive momentum. The RSI at 34.08 is Neutral, neither overbought nor oversold. The STOCH value of 19.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GEHC.

GE Healthcare Technologies Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEEV	79 Outperform	$34.27B	50.35	13.63%	―	16.20%	34.71%
DOCS	79 Outperform	$10.43B	51.48	21.24%	―	17.47%	49.87%
PRVA	76 Outperform	$2.80B	206.73	2.40%	―	4.74%	-39.28%
HQY	69 Neutral	$6.91B	75.39	4.66%	―	20.03%	71.43%
GEHC	63 Neutral	$29.72B	14.97	25.60%	0.20%	0.61%	43.28%
BTSG	60 Neutral	$3.17B	―	-1.62%	―	27.65%	86.89%
Sector *	48 Neutral	$6.26B	1.15	-46.15%	2.69%	19.24%	1.69%

GE Healthcare Technologies Inc Corporate Events

GE Healthcare’s New $3.5 Billion Credit Agreements

On March 27, 2025, GE Healthcare Technologies Inc. entered into two new credit agreements with JPMorgan Chase Bank, N.A., providing a total of $3.5 billion in senior unsecured revolving credit facilities. These agreements replace previous credit facilities and include various covenants and events of default, reflecting the company’s strategic financial restructuring. The termination of the previous credit agreements, which provided a combined $3.5 billion in credit, was completed without penalty, marking a significant shift in the company’s financial management approach.