GE Healthcare Technologies, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Stryker Corp.

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GE Healthcare Technologies, Inc.

Abbott Laboratories

Becton, Dickinson & Co.

Why is GE Healthcare Technologies, Inc. ?

High Management Efficiency with a high ROCE of 18.55%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.92 times

Flat results in Mar 26

ROCE(HY) Lowest at 19.24%
INTEREST COVERAGE RATIO(Q) Lowest at 549.25
RAW MATERIAL COST(Y) Grown by 8.97% (YoY)

With ROCE of 18.08%, it has a attractive valuation with a 2.32 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -14.33%, its profits have fallen by -4%

High Institutional Holdings at 98.79%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 3.57% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.33% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GE Healthcare Technologies, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is GE Healthcare Technologies, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

GE Healthcare Technologies, Inc.

-14.33%

-0.57

32.74%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.99%

EBIT Growth (5y)

2.66%

EBIT to Interest (avg)

7.73

Debt to EBITDA (avg)

2.11

Net Debt to Equity (avg)

0.70

Sales to Capital Employed (avg)

1.08

Tax Ratio

18.50%

Dividend Payout Ratio

3.08%

Pledged Shares

Institutional Holding

98.79%

ROCE (avg)

18.55%

ROE (avg)

26.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.04

EV to EBIT

12.85

EV to EBITDA

10.71

EV to Capital Employed

2.32

EV to Sales

1.80

PEG Ratio

Dividend Yield

0.10%

ROCE (Latest)

18.08%

ROE (Latest)

20.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 5.69 times

-11What is not working for the Company

ROCE(HY)

Lowest at 19.24%

INTEREST COVERAGE RATIO(Q)

Lowest at 549.25

RAW MATERIAL COST(Y)

Grown by 8.97% (YoY

INTEREST(Q)

Highest at USD 134 MM

OPERATING PROFIT(Q)

Lowest at USD 736 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.34 %

PRE-TAX PROFIT(Q)

Lowest at USD 567 MM

NET PROFIT(Q)

Lowest at USD 439.46 MM

EPS(Q)

Lowest at USD 0.85

Here's what is working for GE Healthcare Technologies, Inc.

Inventory Turnover Ratio

Highest at 5.69 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at USD 153 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for GE Healthcare Technologies, Inc.

Interest Coverage Ratio

Lowest at 549.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 134 MM

in the last five periods and Increased by 8.94% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 736 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 14.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 567 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 439.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.85

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 8.97% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.23 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income