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GE Healthcare Technologies Inc (GEHC)
NASDAQ:GEHC
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GE Healthcare Technologies Inc
(NASDAQ:GEHC)76Outperform
Positive Factors
Operational Efficiency
The company achieved record high margins across key divisions, signaling strong operational efficiency.
Product Launches
Key new product launches, including Flyrcado and Vizamyl, are seen as significant growth drivers with substantial annual revenue potential by 2028.
Negative Factors
China Market Challenges
China's market softness continues to be a headwind for GE Healthcare Technologies Inc., impacting overall performance.
GE Healthcare Technologies Inc (GEHC) vs. S&P 500 (SPY)
Market Cap
$38.55B
Dividend Yield0.14%
Average Volume (3M)2.82M
Price to Earnings (P/E)19.4
Beta (1Y)0.89
Revenue Growth0.61%
EPS Growth43.28%
CountryUS
Employees53,000
SectorHealthcare
Sector Strength74
IndustryMedical Diagnostics & Screening
Share Statistics
EPS (TTM)4.34
Shares Outstanding457,298,300
10 Day Avg. Volume3,108,289
30 Day Avg. Volume2,819,217
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)N/A
Price to Sales (P/S)2.01
Price to Cash Flow (P/CF)10.80
P/FCF Ratio9.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$102.13Price Target Upside21.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
GE Healthcare Technologies Inc Business Overview & Revenue Model
Company DescriptionGE Healthcare Technologies Inc (GEHC) is a leading global provider of medical imaging, monitoring, biomanufacturing, and cell and gene therapy technologies. The company operates in various sectors including diagnostic imaging, ultrasound, life care solutions, and enterprise digital solutions. Its core products and services are designed to enable precision health, improve patient outcomes, and enhance operational efficiency in healthcare facilities worldwide.
How the Company Makes MoneyGE 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 exhibits strong financial health in terms of profitability and capital structure, evidenced by its impressive profit margins and reduced debt levels. The consistent revenue growth adds to the company's strengths, though the recent cash flow challenges may require careful management. The overall financial position remains robust, with a focus on sustaining cash flow improvements and maintaining operational efficiency.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.85
Very Positive
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.78
Positive
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.60
Neutral
| 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
Negative
84.31
Price Trends
85.83
Negative
85.67
Negative
84.10
Positive
Market Momentum
0.22
Positive
36.35
Neutral
14.29
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 84.31 is below the 20-day moving average (MA) of 89.22, below the 50-day MA of 85.83, and above the 200-day MA of 84.10, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 36.35 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 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 Risk Analysis
GE Healthcare Technologies Inc disclosed 33 risk factors in its most recent earnings report. GE Healthcare Technologies Inc reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GE Healthcare Technologies Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $148.79B | 50.24 | 14.51% | 0.82% | 10.23% | -5.74% | |
78 Outperform | $152.91B | 83.05 | 8.51% | ― | 17.60% | 16.84% | |
77 Outperform | $119.32B | 28.28 | 8.63% | 2.96% | 2.72% | 4.48% | |
76 Outperform | $38.55B | 19.42 | 23.60% | 0.14% | 0.61% | 43.28% | |
73 Outperform | $65.60B | 37.95 | 6.85% | 1.70% | 5.89% | 42.05% | |
71 Outperform | $20.70B | 23.46 | 7.25% | 0.91% | 3.84% | -9.29% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
GEHC
GE Healthcare Technologies Inc
84.31
-8.65
-9.31%
BDX
Becton Dickinson
224.27
-7.40
-3.19%
BSX
Boston Scientific
103.61
36.19
53.68%
MDT
Medtronic
93.03
10.31
12.46%
SYK
Stryker
389.92
38.16
10.85%
ZBH
Zimmer Biomet Holdings
103.99
-20.77
-16.65%
GE Healthcare Technologies Inc Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -1.85% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in margin expansion, order growth, and strategic partnerships, alongside a record backlog. However, the company faced challenges in the China market and a decline in free cash flow, which affected overall performance. The guidance for 2025 reflects cautious optimism with continued investments in innovation and strategic partnerships.Highlights
Strong Margin Expansion
Adjusted EBIT margin expanded to 18.7% in Q4, up 260 basis points year-over-year, driven by productivity and volume improvements.
Robust Order Growth
Orders grew by 6% year-over-year, with a book-to-bill ratio of 1.09, the highest since the company's spin-off.
Record Backlog
Exited Q4 with a record backlog of $19.8 billion, up $700 million year-over-year.
New Product Launches
Introduced 40 innovations in 2024, with new products contributing approximately 50% to the year's revenue. Notable upcoming launch: Flyrcado radiopharmaceutical.
Significant Partnerships
Announced a Care Alliance with Sutter Health valued at $1 billion over seven years, contributing to a total of over $5 billion in large deals since the spin-off.
Lowlights
Challenges in China
China market faced headwinds with a 200 basis point negative impact on global sales growth. Anticipated low single-digit revenue decline in 2025.
Free Cash Flow Decline
Free cash flow for Q4 was $811 million, down $145 million year-over-year due to inventory builds.
Patient Care Solutions Margin Decline
Segment EBIT margin for Patient Care Solutions declined by 50 basis points year-over-year, attributed to inflation and portfolio mix.
Company Guidance
During the GE HealthCare fourth quarter and full year 2024 earnings call, the company provided guidance for 2025, projecting revenue growth of 2% to 3%, with a low single-digit decline anticipated in the China market. Excluding China, sales are expected to grow in the mid-single digits, aligning with their global market outlook. The guidance integrates an expected foreign exchange headwind of approximately 1.5% and the impact of new U.S. tariffs on products from China, which are estimated to affect adjusted EBIT by about 10 basis points. Despite these challenges, GE HealthCare is committed to expanding its adjusted EBIT margin by 40 to 50 basis points, targeting a range of 16.7% to 16.8%. The company anticipates adjusted EPS growth of 3% to 6%, setting a full-year target between $4.61 and $4.75, while projecting free cash flow of at least $1.75 billion. For the first quarter of 2025, GE HealthCare expects organic revenue growth of 1% to 2% year-over-year, with adjusted EBIT margin and adjusted EPS remaining approximately flat. The company highlighted ongoing investments in R&D and strategic initiatives as crucial for supporting their long-term growth objectives.GE Healthcare Technologies Inc Corporate Events
Business Operations and Strategy
GE HealthCare Unveils 2024 Investor Day Plans
Neutral
Nov 21, 2024
GE HealthCare Technologies announced their 2024 Investor Day through a press release, highlighting key updates and strategies for the upcoming year. This announcement is pivotal for investors and market enthusiasts eager to understand GE HealthCare’s future direction and potential impact on the financial markets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.