GE Healthcare Technologies Inc (GEHC) AI Stock Analysis

• Market Cap: $33.83B
• Dividend Yield: 0.18%
• Average Volume (3M): 3.95M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.31
• Revenue Growth: 2.30%
• EPS Growth: 41.46%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 1.06
• Shares Outstanding: 456,562,040
• 10 Day Avg. Volume: 2,727,101
• 30 Day Avg. Volume: 3,952,592
• PEG Ratio: 0.41
• Price to Book (P/B): 4.22
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 23.00
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: 10.74
• 1Y Price Target: $85.71
• Price Target Upside: 15.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: $85.00 ▲(14.73% Upside)

GE Healthcare Technologies Inc. presents a solid investment opportunity with strong financial performance and strategic initiatives. The company's robust financial health, strategic collaborations, and improved guidance are significant strengths. However, moderate revenue growth and challenges in specific segments, such as tariff impacts and slower recovery in China, slightly temper the overall outlook.

Positive Factors

Demand Environment

Demand from the US is robust, with acceleration in the EU, suggesting a constructive demand environment.

Financial Performance

GEHC's Q2 revenue and EPS both exceeded expectations, with revenue beating the Street by 1% and EPS by 15%.

Revenue Growth

GEHC raised its full-year organic revenue growth guidance to around 3%, indicating confidence in its performance despite moderating expectations in China.

Negative Factors

China Market Challenges

The recovery of the China market is taking longer than expected, with extended tender cycles delaying purchase orders and buying activities.

Stock Performance

Even though the stock has recovered off the lows, it is still underperforming the sector, down 15% since the beginning of March.

Tariff Impact

Management lowered 2025 EPS guidance due to a larger than expected tariff impact, although the core business seems to be doing well.

GE Healthcare Technologies Inc Business Overview & Revenue Model

Company Description

GE Healthcare Technologies Inc (GEHC) is a leading global medical technology and digital solutions innovator. The company operates in various sectors including imaging, ultrasound, life care solutions, and pharmaceutical diagnostics. GEHC is committed to transforming healthcare by leveraging its expertise in data analytics, artificial intelligence, and innovative technologies to improve patient outcomes and enhance the efficiency of healthcare systems worldwide.

How the Company Makes Money

GE Healthcare Technologies Inc generates revenue through the sale of medical devices and diagnostic imaging equipment, such as MRI machines, CT scanners, ultrasound systems, and X-ray machines. The company also provides software and digital solutions for healthcare providers to improve operational efficiency and patient care. Additionally, GEHC earns income from service contracts, maintenance agreements, and training services for the installed base of its equipment. Pharmaceutical diagnostics, including contrast media and molecular imaging agents, also contribute to its revenue streams. GEHC's earnings are further supported by strategic partnerships and collaborations with hospitals, research institutions, and technology companies to drive innovation and expand its market reach.

GE Healthcare Technologies Inc Financial Statement Overview

Summary

GE Healthcare Technologies Inc. demonstrates robust financial performance with consistent revenue and profit growth, healthy profit margins, and effective debt management. While revenue growth is moderate, the overall financial health is strong, positioning the company well for future opportunities.

Income Statement

GE Healthcare Technologies Inc. shows strong financial performance with consistent revenue growth, achieving a TTM revenue of $19.97 billion. Gross and net profit margins remain healthy at 41.56% and 11.23% respectively, indicating effective cost management and profitability. The EBIT and EBITDA margins of 13.82% and 18.09% further reinforce operational efficiency. The revenue growth rate from 2024 to TTM is 1.49%, demonstrating moderate upward momentum.

Balance Sheet

The balance sheet reveals a solid financial structure with a debt-to-equity ratio of 0.21, highlighting low leverage and financial stability. The equity ratio stands at 27.36%, indicating a substantial proportion of assets funded by equity. The return on equity is robust at 23.07%, showcasing effective utilization of shareholders' equity to generate profits. Overall, the balance sheet reflects a strong financial position with manageable debt levels.

Cash Flow

The cash flow statement indicates healthy liquidity with a free cash flow of $1.22 billion in TTM. The free cash flow to net income ratio is 0.54, and the operating cash flow to net income ratio is 0.74, demonstrating efficient cash generation relative to earnings. However, there is a decline in free cash flow from the previous year, indicating potential areas for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.96B	19.67B	19.55B	18.34B	17.59B	17.16B
Gross Profit	8.30B	8.21B	7.92B	7.18B	7.17B	6.77B
EBITDA	3.83B	3.67B	3.51B	3.17B	3.54B	3.41B
Net Income	2.24B	1.99B	1.57B	1.92B	2.25B	13.85B
Balance Sheet
Total Assets	35.50B	33.09B	32.45B	27.54B	26.31B	24.23B
Cash, Cash Equivalents and Short-Term Investments	3.74B	2.89B	2.49B	1.45B	554.00M	994.00M
Total Debt	10.72B	9.38B	9.86B	8.25B	437.00M	468.00M
Total Liabilities	25.55B	24.44B	25.14B	18.18B	9.63B	9.48B
Stockholders Equity	9.71B	8.45B	7.13B	9.36B	16.66B	14.73B
Cash Flow
Free Cash Flow	1.22B	1.55B	1.71B	1.80B	1.36B	1.43B
Operating Cash Flow	1.65B	1.95B	2.10B	2.11B	1.61B	1.69B
Investing Cash Flow	-1.01B	-914.00M	-558.00M	-398.00M	-1.76B	19.99B
Financing Cash Flow	712.00M	-573.00M	-478.00M	-822.00M	-263.00M	-21.54B

GE Healthcare Technologies Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEHC, the sentiment is Positive. The current price of 74.09 is above the 20-day moving average (MA) of 72.89, above the 50-day MA of 74.03, and below the 200-day MA of 77.68, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 56.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEHC.

GE Healthcare Technologies Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCS	80 Outperform	$12.57B	57.58	24.25%	―	19.45%	46.46%
GEHC	77 Outperform	$33.83B	15.27	25.60%	0.18%	2.30%	41.46%
VEEV	76 Outperform	$46.82B	60.72	14.07%	―	14.78%	39.33%
HQY	69 Neutral	$7.72B	65.02	5.77%	―	19.21%	50.06%
TEM	65 Neutral	$13.26B	―	-97.95%	―	59.84%	76.46%
HNGE	63 Neutral	$4.32B	27.69		―	43.35%	-430.79%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%

GE Healthcare Technologies Inc Corporate Events

GE Healthcare Board Member Resigns Abruptly

On July 23, 2025, Lloyd W. Howell, Jr. resigned from GE Healthcare Technologies Inc.’s Board of Directors, effective immediately. His departure was not due to any disagreement with the company’s operations, policies, or practices.

GE Healthcare Issues $1.5 Billion in Senior Notes

On June 9, 2025, GE Healthcare Technologies Inc. issued $1.5 billion in senior notes, divided into $650 million due in 2031 and $850 million due in 2035. These senior unsecured notes are part of the company’s strategy to manage its debt portfolio and maintain its financial flexibility, potentially impacting its market positioning and stakeholder interests.

GE Healthcare Announces $1.5 Billion Notes Offering

On June 3, 2025, GE Healthcare Technologies Inc. announced the commencement and pricing of an underwritten offering of $1.5 billion in aggregate principal amount of notes. This offering, which includes $650 million of 4.800% Notes due in 2031 and $850 million of 5.500% Notes due in 2035, is expected to be issued around June 9, 2025, and aims to strengthen the company’s financial position. The offering is managed by major financial institutions including Citigroup, J.P. Morgan, and Morgan Stanley, indicating a strong market interest and confidence in GE Healthcare’s financial strategies.

GE Healthcare Holds Annual Stockholders Meeting

On May 28, 2025, GE Healthcare Technologies Inc. held its annual stockholders meeting where 10 directors were elected for a one-year term. Stockholders also approved executive compensation and ratified Deloitte & Touche LLP as the independent auditor for 2025, while a proposal on termination pay arrangements was not approved.