GE Healthcare Technologies Inc (GEHC) AI Stock Analysis

• Market Cap: $34.82B
• Dividend Yield: 0.18%
• Average Volume (3M): 3.75M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.27
• Revenue Growth: 3.52%
• EPS Growth: 32.21%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 1.07
• Shares Outstanding: 455,521,600
• 10 Day Avg. Volume: 4,733,201
• 30 Day Avg. Volume: 3,746,981
• 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: 1.18
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 4.99
• Enterprise Value/Ebitda: 10.86
• 1Y Price Target: $88.33
• Price Target Upside: 15.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 4.55
• Revenue Forecast (FY): $20.54B

• Rating: 74 Outperform
• Price Target: $84.00 ▲(9.88% Upside)

GE Healthcare Technologies Inc. demonstrates strong financial performance and a positive outlook from the latest earnings call, despite facing cash flow challenges and tariff impacts. The technical indicators suggest a neutral trend, while the valuation appears fair. The company's strategic initiatives and raised guidance contribute positively to the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Strategic Partnerships

Strategic partnerships enhance product offerings and market reach, fostering innovation and sustained revenue streams.

Cash Generation

Strong cash generation supports financial stability and investment in growth opportunities, ensuring long-term viability.

Negative Factors

Tariff Impacts

Tariff impacts can erode profit margins, affecting financial performance and competitiveness over the long term.

Patient Care Solutions Challenges

Challenges in key segments can hinder overall growth and require strategic adjustments to regain momentum.

Decline in Free Cash Flow

A decline in free cash flow may indicate inefficiencies in cash management, impacting future investment capacity and financial health.

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, primarily focused on improving patient outcomes and enhancing operational efficiency in healthcare. The company operates in several sectors, including imaging, monitoring, biomanufacturing, and diagnostics. GEHC's core products and services encompass advanced imaging equipment such as MRI and CT scanners, ultrasound systems, patient monitoring solutions, and healthcare IT software, all aimed at providing healthcare professionals with critical insights and tools for better patient care.

How the Company Makes Money

GE Healthcare generates revenue through multiple streams, primarily by selling medical imaging equipment, patient monitoring systems, and diagnostic tools to healthcare institutions worldwide. The company also earns significant income from software solutions and services, including digital health platforms that facilitate data management and analytics for healthcare providers. Additionally, GEHC benefits from long-term service agreements and maintenance contracts, which provide ongoing revenue through repairs, upgrades, and technical support for installed equipment. Strategic partnerships with hospitals, research institutions, and technology firms further enhance its market reach and contribute to its earnings by enabling collaborative innovations and expanding its product offerings.

GE Healthcare Technologies Inc Financial Statement Overview

Summary

GE Healthcare Technologies Inc. shows strong revenue growth and profitability with significant improvements in leverage and return on equity. However, challenges in cash flow generation could impact liquidity, necessitating a focus on cost management and cash flow improvement.

Income Statement

GE Healthcare Technologies Inc. demonstrates strong revenue growth with a TTM increase of 1.4%, indicating a positive trajectory. The company maintains healthy profitability with a gross profit margin of 40.8% and a net profit margin of 10.9% in the TTM. EBIT and EBITDA margins are also robust at 15.9% and 18.8% respectively, reflecting efficient operations. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet shows a significant improvement in leverage, with a TTM debt-to-equity ratio of 0.20, down from 1.11 the previous year, indicating reduced financial risk. The return on equity remains strong at 23.7%, showcasing effective use of equity. However, the equity ratio is not explicitly calculated, and the decrease in stockholders' equity over the years could be a concern for long-term stability.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth by 70.4% in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.09, suggesting that cash generation from operations is not keeping pace with net income. However, the free cash flow to net income ratio remains healthy at 50.7%, indicating some level of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.25B	19.67B	19.55B	18.34B	17.59B	17.16B
Gross Profit	8.26B	8.21B	7.92B	7.18B	7.17B	6.77B
EBITDA	3.80B	3.67B	3.51B	3.17B	3.54B	3.41B
Net Income	2.22B	1.99B	1.57B	1.92B	2.25B	13.85B
Balance Sheet
Total Assets	36.13B	33.09B	32.45B	27.54B	26.31B	24.23B
Cash, Cash Equivalents and Short-Term Investments	4.00B	2.89B	2.50B	1.45B	556.00M	1.01B
Total Debt	10.74B	9.38B	9.86B	8.63B	437.00M	468.00M
Total Liabilities	25.91B	24.44B	25.14B	17.95B	9.41B	9.25B
Stockholders Equity	9.99B	8.45B	7.13B	9.36B	16.66B	14.73B
Cash Flow
Free Cash Flow	463.00M	1.55B	1.71B	1.80B	1.36B	1.43B
Operating Cash Flow	913.00M	1.95B	2.10B	2.11B	1.61B	1.69B
Investing Cash Flow	-1.02B	-914.00M	-558.00M	-398.00M	-1.76B	19.99B
Financing Cash Flow	-367.00M	-573.00M	-478.00M	-822.00M	-263.00M	-21.54B

GE Healthcare Technologies Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 76.45 is above the 20-day moving average (MA) of 74.54, above the 50-day MA of 74.68, and above the 200-day MA of 75.05, indicating a bullish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 57.23 is Neutral, neither overbought nor oversold. The STOCH value of 72.23 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
HQY	77 Outperform	$8.78B	61.69	6.78%	―	15.45%	37.72%
GEHC	74 Outperform	$34.82B	15.81	24.22%	0.18%	3.52%	32.21%
DOCS	72 Outperform	$9.49B	40.22	24.61%	―	20.21%	44.14%
VEEV	66 Neutral	$40.00B	47.42	13.72%	―	15.96%	27.91%
HNGE	64 Neutral	$3.59B	―	―	―	50.67%	-578.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TEM	49 Neutral	$12.51B	―	-72.61%	―	72.58%	76.81%

GE Healthcare Technologies Inc Corporate Events

GE Healthcare’s Earnings Call: Growth Amid Challenges

The recent earnings call of GE Healthcare Technologies Inc. painted a picture of robust performance despite some challenges. The general sentiment was positive, with the company showcasing strong revenue growth and strategic partnerships, particularly in the Pharmaceutical Diagnostics segment. However, issues such as tariffs affecting margins and challenges in the Patient Care Solutions segment were also highlighted. Nevertheless, the company’s decision to raise its adjusted EPS guidance suggests a confident outlook for the future.

GE HealthCare Reports Robust Q3 2025 Growth

GE HealthCare Technologies Inc. is a leading global provider of healthcare solutions, specializing in medical technology, pharmaceutical diagnostics, and AI-enabled services, aimed at enhancing the efficiency of healthcare systems and improving patient outcomes.

GE HealthCare Reports Strong Q2 2025 Performance

GE HealthCare Technologies Inc., a leader in the healthcare sector, specializes in medical technology, pharmaceutical diagnostics, and AI-enabled solutions, aiming to enhance patient care and healthcare system efficiency. In its latest earnings report for the second quarter of 2025, GE HealthCare announced a 3% increase in revenue year-over-year, with a notable rise in net income margin to 9.7% from 8.9% the previous year. The company also reported a significant improvement in cash flow from operating activities, reaching $94 million compared to a negative $119 million in the prior year.

GE Healthcare’s Earnings Call Highlights Growth Amid Challenges

The recent earnings call for GE Healthcare Technologies Inc. painted a picture of robust growth and strategic achievements, albeit with some challenges. The overall sentiment was positive, driven by strong order growth and an optimistic financial outlook, particularly in the Imaging and Nuclear Medicine sectors. However, the company faces hurdles such as tariff impacts, difficulties in the China market, and stagnant performance in Patient Care Solutions, which have put pressure on margins.