GE Healthcare Technologies Inc (GEHC) AI Stock Analysis

• Market Cap: $35.68B
• Dividend Yield: 0.18%
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.37
• Revenue Growth: 2.30%
• EPS Growth: 41.46%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 1.06
• Shares Outstanding: 456,562,040
• 10 Day Avg. Volume: 2,380,601
• 30 Day Avg. Volume: 3,045,555
• 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: 1.15
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: 10.74
• 1Y Price Target: $85.89
• Price Target Upside: 9.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: $83.00 ▲(5.93% Upside)

GE Healthcare Technologies Inc. scores well due to its strong financial performance and positive earnings call outlook. While technical analysis presents mixed signals, the company's solid financial health and strategic initiatives provide a positive long-term outlook. Valuation is reasonable, though dividend yield is modest.

Positive Factors

Strategic Collaborations

Strategic collaborations, including significant orders and partnerships, enhance market reach and innovation, supporting long-term growth.

R&D Investments and New Product Success

Strong R&D investment leading to successful new products boosts competitive edge and revenue, ensuring sustained market leadership.

Exclusive Licensing Agreement

The licensing agreement for Pylarify in Japan expands GEHC's product portfolio and market presence, driving future revenue growth.

Negative Factors

Tariff Impacts on Margins

Tariff impacts reducing margins could strain profitability, affecting cash flow and financial flexibility over the medium term.

China Market Challenges

Prolonged recovery in China affects revenue growth and market expansion, posing a risk to achieving projected financial targets.

Patient Care Solutions Flat Revenue

Flat revenue and declining margins in Patient Care Solutions indicate challenges in product mix and pricing power, impacting growth.

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. demonstrates strong financial performance with consistent revenue growth, robust profitability margins, and prudent debt management. The balance sheet is stable with low leverage, and the cash flow statement reflects adequate liquidity and strong cash generation capabilities. While revenue growth is moderate, the overall financial health is solid.

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	3.76B	2.89B	2.50B	1.45B	556.00M	1.01B
Total Debt	10.72B	9.38B	9.86B	8.63B	437.00M	468.00M
Total Liabilities	25.55B	24.44B	25.14B	17.95B	9.41B	9.25B
Stockholders Equity	9.71B	8.45B	7.13B	9.36B	16.66B	14.73B
Cash Flow
Free Cash Flow	1.56B	1.55B	1.71B	1.80B	1.36B	1.43B
Operating Cash Flow	2.00B	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: 78.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 78.35 is above the 20-day moving average (MA) of 75.05, above the 50-day MA of 74.84, and above the 200-day MA of 76.24, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 94.33 is Negative, 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
VEEV	―	$48.03B	60.12	13.70%	―	15.33%	30.51%
HQY	―	$8.31B	58.22	6.78%	―	15.45%	37.72%
GEHC	―	$35.68B	16.00	25.60%	0.18%	2.30%	41.46%
DOCS	―	$12.52B	58.80	24.25%	―	19.45%	46.46%
HNGE	―	$3.89B	―	―	―	43.35%	-430.79%
TEM	―	$15.50B	―	-97.95%	―	59.84%	76.46%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

GE Healthcare Technologies Inc Corporate Events

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.