GE GE Aerospace - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Valuation is stretched versus the industrials sector average P/E of 23.61 and even high-quality peer CAT (P/E 28.48), suggesting limited margin of safety at current levels
- Price/Sales of 7.32 reflects premium positioning in high-margin aerospace segment
- Lower than Boeing's implied valuation given Boeing's N/A metrics and higher cyclicality
- P/E of 40.81 is nearly double the sector average of 23.61
- Forward P/E of 58.17 implies aggressive growth assumptions not yet realized
Revenue and earnings growth trajectories are positive and supported by aerospace cycle tailwinds, but price momentum has outpaced fundamental delivery, with 1M return of +1.6% and 6M return of +31.9% already pricing in strength
- Revenue growth of 23.80% YoY is among the highest in the peer group, ahead of BA's 30.40% but on a more profitable base
- Q/Q earnings growth of 16.50% shows sustained momentum into recent periods
- Forward P/E of 58.17 requires flawless execution and margin expansion to justify
- No recent earnings beats raise concerns about ability to meet elevated expectations
Historical profitability and long-term price performance are outstanding, but recent earnings execution has been underwhelming, with no positive surprises despite strong macro and sector tailwinds
- Consistent profitability with gross margin of 32.46% and operating margin of 20.60% over time
- Five-year share price appreciation of +553.6% reflects successful strategic repositioning and spin-offs
- Zero earnings beats in the last four quarters, with average surprise of 0.00%
- Lack of quarterly earnings data transparency (all N/A) limits visibility into trend quality
Leverage is reasonable relative to peers like CAT (2.01) and PCAR (0.82), but weak liquidity and absent cash flow metrics raise questions about operational flexibility during downturns
- Debt/Equity of 1.15 is manageable and below sector average of 1.42
- Profitability buffers debt load, with strong ROIC implied by high ROE and leverage
- Quick ratio of 0.72 indicates tight short-term liquidity, below safe threshold of 1.0
- Missing cash flow data (OCF, FCF) limits ability to assess true financial resilience
While the dividend is well-covered and low-risk, its negligible yield of 0.47% does not serve as a meaningful shareholder return driver, especially in a rising rate environment
- Low payout ratio of 18.18% provides significant headroom for future dividend growth
- Dividend policy appears sustainable given earnings coverage and strong free cash flow generation (inferred)
- Dividend yield of 0.47% is minimal, offering little income appeal versus peers like PCAR (implied higher yield)
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for GE and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
GE
GE Aerospace
Primary
|
+553.6% | +470.0% | +71.9% | +31.9% | +1.6% | -0.8% |
|
CAT
Caterpillar Inc.
Peer
|
+251.8% | +148.6% | +45.2% | +57.7% | +4.0% | -1.6% |
|
RTX
RTX Corporation
Peer
|
+185.7% | +96.5% | +50.6% | +30.8% | +11.8% | -0.8% |
|
GEV
GE Vernova Inc.
Peer
|
+341.7% | +341.7% | +77.8% | +35.2% | -6.1% | +0.6% |
|
BA
The Boeing Company
Peer
|
-3.9% | +10.9% | +40.8% | -5.5% | -9.1% | -0.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Industrials Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
GE
GE Aerospace
|
NEUTRAL | $321.53B | 40.81 | 42.1% | 18.3% | $304.82 | |
|
CAT
Caterpillar Inc.
|
NEUTRAL | $259.55B | 28.48 | 46.3% | 14.3% | $554.03 | |
|
RTX
RTX Corporation
|
NEUTRAL | $235.4B | 36.13 | 10.7% | 7.7% | $175.57 | |
|
GEV
GE Vernova Inc.
|
NEUTRAL | $156.91B | 94.34 | 16.7% | 4.5% | $578.31 | |
|
BA
The Boeing Company
|
NEUTRAL | $147.9B | - | -% | -12.2% | $194.52 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-08-29 | GHAI RAHUL | Officer | Stock Award | 52,488 | - |
| 2025-08-05 | ALI MOHAMED | Officer | Sale | 1,517 | $407,755 |
| 2025-08-05 | ALI MOHAMED | Officer | Option Exercise | 1,517 | $221,983 |
| 2025-05-30 | GOWDER AMY L | Officer | Stock Award | 16,391 | - |
Wall Street Analysts
Professional analyst ratings and price targets