GE GE Aerospace - Fundamental Analysis
NEUTRAL
GE Stock | Fundamental Analysis & Investment Insights
NYSE
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Industrials
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Aerospace & Defense
Current Price
$304.82
Analyst Target
$343.57
+12.7% Upside
52W High
$316.67
52W Low
$159.36
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
GE Aerospace trades at a significant premium to both historical norms and sector peers, supported by strong recent price momentum (up +71.9% in 1Y and +553.6% over 5Y) and robust profitability metrics including 20.6% operating margin and 42.13% ROE. However, elevated valuation multiples—P/E of 40.81 and forward P/E of 58.17—stand in contrast to lackluster analyst coverage and weak earnings surprise history, with zero beats over the last four quarters. Revenue growth of 23.8% YoY is impressive and above the sector average of 6.97%, but insider selling and limited analyst consensus reduce conviction in near-term upside. Relative to peers like CAT and BA, GE exhibits stronger profitability than most but at a steep valuation discount to growth, raising sustainability concerns.
Key Strengths
Exceptional profitability with ROE of 42.13%—well above sector average of 30.22% and peer CAT's 46.28%
Strong YoY revenue growth of 23.80%, significantly outpacing the sector average of 6.97%
High operating margin of 20.60%, reflecting pricing power and cost discipline in aerospace segment
Attractive capital allocation with low dividend payout ratio of 18.18%, leaving room for future increases
Impressive 5-year total return of +553.6%, demonstrating strong investor confidence and execution
Key Risks
Extremely high forward P/E of 58.17 suggests overvaluation, especially if earnings growth fails to materialize
No earnings beat in the last four quarters with average surprise of 0.00%, indicating poor execution or conservative guidance
Insider selling activity—$0.41M in sales with no buys—signals lack of confidence from internal leadership
Low liquidity profile with quick ratio of 0.72, below 1.0 threshold and weaker than peer PCAR (0.82)
Limited analyst coverage (only 14 analysts) and absence of recommendation consensus increases information asymmetry
AI Fair Value Estimate
Based on comprehensive analysis
$285.0
-6.5% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare GE against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations