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GE Healthcare Technologies Inc (GEHC)
NASDAQ:GEHC
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GE Healthcare Technologies Inc
(NASDAQ:GEHC)
71Outperform
Positive Factors
Company Performance
GEHC's orders, sales, and margins exceeded expectations, indicating strong company performance.
Market Demand
Demand from the US is robust, with acceleration in the EU, suggesting a constructive demand environment.
Product Development
Key product launches are on track, including Flyrcado and CT photon-counting, with AI opportunities on the horizon.
Negative Factors
EBIT Margin Guidance
The company reduced its EBIT margin guidance significantly.
Guidance Revision
Management lowered 2025 EPS guidance due to a larger than expected tariff impact, although the core business seems to be doing well.
Tariff Impact
GEHC was one of the companies most negatively impacted by tariffs, affecting its financial outlook.
GE Healthcare Technologies Inc (GEHC) vs. S&P 500 (SPY)
Market Cap
$32.29B
Dividend Yield0.18%
Average Volume (3M)6.08M
Price to Earnings (P/E)14.8
Beta (1Y)1.27
Revenue Growth1.55%
EPS Growth38.51%
CountryUS
Employees53,000
SectorHealthcare
Sector Strength50
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)1.01
Shares Outstanding457,885,000
10 Day Avg. Volume6,646,674
30 Day Avg. Volume6,076,659
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.36
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.36
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$85.86Price Target Upside21.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
GE Healthcare Technologies Inc Business Overview & Revenue Model
Company DescriptionGE Healthcare Technologies Inc (GEHC) is a leading global provider of medical imaging, monitoring, biomanufacturing, and cell and gene therapy technologies. The company operates in various sectors including diagnostic imaging, ultrasound, life care solutions, and enterprise digital solutions. Its core products and services are designed to enable precision health, improve patient outcomes, and enhance operational efficiency in healthcare facilities worldwide.
How the Company Makes MoneyGE Healthcare Technologies Inc makes money through the sale and service of its medical devices and technologies across different healthcare sectors. Its key revenue streams include the sale of diagnostic imaging equipment such as MRI and CT machines, ultrasound devices, and life care solutions like patient monitors and anesthesia systems. The company also generates revenue from providing digital solutions that improve healthcare data management and operational workflows. Additionally, GEHC earns from service contracts, maintenance agreements, and software subscriptions. Strategic partnerships with hospitals, clinics, and research institutions further augment its earnings by expanding its market reach and enhancing product offerings.
GE Healthcare Technologies Inc Financial Statement Overview
Summary
GE Healthcare Technologies Inc. demonstrates strong financial performance with steady revenue growth and high operational efficiency, as evidenced by a robust gross profit margin and a solid net profit margin. The balance sheet shows reduced leverage and strong return on equity, while cash flow management supports operational initiatives, despite some pressure from increased capital expenditures.Income Statement
GE Healthcare Technologies Inc shows a strong financial performance with a consistent revenue growth trajectory. The TTM (Trailing-Twelve-Months) revenue grew by 0.64% compared to the previous year. The company maintains a solid gross profit margin of 41.97% and a net profit margin of 11.03% TTM, reflecting strong operational efficiency. However, the EBITDA margin decreased slightly from 18.71% last year to 17.72% TTM, indicating some pressure on earnings before interest, taxes, depreciation, and amortization.―
Balance Sheet
The balance sheet of GE Healthcare exhibits a robust equity position with an equity ratio of 27.35% in the TTM period. The debt-to-equity ratio decreased significantly to 0.22 TTM, indicating reduced leverage and enhanced financial stability. Return on equity is strong at 23.76% TTM, showcasing effective utilization of equity to generate profits. The improvements in the leverage metrics are notable, although the overall equity ratio remains modest, suggesting room for strengthening capital structure further.78
Cash Flow
The cash flow analysis reveals a solid ability to generate free cash flow, with a TTM free cash flow of $1.124 billion, despite a decline from last year. The operating cash flow to net income ratio is 0.70, indicating a strong cash conversion capability. However, the free cash flow to net income ratio has decreased, reflecting higher capital expenditures relative to net income. Overall, the company's cash flow management remains strong, supporting its operational and strategic initiatives.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 19.67B | 19.55B | 18.34B | 17.59B | 17.16B | Gross Profit |
| 8.21B | 7.92B | 7.18B | 7.17B | 6.77B | EBIT |
| 2.63B | 2.44B | 2.52B | 2.79B | 2.72B | EBITDA |
| 3.68B | 3.51B | 3.17B | 3.54B | 3.41B | Net Income Common Stockholders |
| 1.99B | 1.57B | 1.92B | 2.25B | 2.06B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.89B | 2.49B | 1.45B | 554.00M | 994.00M | Total Assets |
| 33.09B | 32.45B | 27.54B | 26.31B | 24.23B | Total Debt |
| 9.38B | 9.86B | 8.25B | 437.00M | 468.00M | Net Debt |
| 6.50B | 7.37B | 6.80B | -117.00M | -526.00M | Total Liabilities |
| 24.44B | 25.14B | 18.18B | 9.63B | 9.48B | Stockholders Equity |
| 8.45B | 7.13B | 9.36B | 16.66B | 14.73B |
| Cash Flow | Free Cash Flow | |||
| 1.55B | 1.71B | 1.80B | 1.36B | 1.43B | Operating Cash Flow |
| 1.95B | 2.10B | 2.11B | 1.61B | 1.69B | Investing Cash Flow |
| -914.00M | -558.00M | -398.00M | -1.76B | 19.99B | Financing Cash Flow |
| -573.00M | -478.00M | -822.00M | -263.00M | -21.54B |
GE Healthcare Technologies Inc Technical Analysis
Neutral
70.50
Price Trends
73.90
Negative
79.66
Negative
82.76
Negative
Market Momentum
-0.72
Negative
51.11
Neutral
49.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEHC, the sentiment is Neutral. The current price of 70.5 is above the 20-day moving average (MA) of 66.34, below the 50-day MA of 73.90, and below the 200-day MA of 82.76, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 49.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GEHC.
GE Healthcare Technologies Inc Risk Analysis
GE Healthcare Technologies Inc disclosed 33 risk factors in its most recent earnings report. GE Healthcare Technologies Inc reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GE Healthcare Technologies Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $37.88B | 53.77 | 13.63% | ― | 16.20% | 34.71% | |
76 Outperform | $10.71B | 57.00 | 21.24% | ― | 17.47% | 49.87% | |
74 Outperform | $2.76B | 198.60 | 2.53% | ― | 6.79% | -18.52% | |
71 Outperform | $32.29B | 14.83 | 26.32% | 0.18% | 1.55% | 38.51% | |
71 Outperform | $7.80B | 82.67 | 4.66% | ― | 20.03% | 71.43% | |
70 Outperform | $3.66B | 75.16 | 2.30% | ― | 23.40% | ― | |
52 Neutral | $5.17B | 3.59 | -42.19% | 2.82% | 15.05% | -0.04% |
* Healthcare Sector Average
Performance Comparison
GEHC
GE Healthcare Technologies Inc
69.87
-13.39
-16.08%
VEEV
Veeva Systems
237.05
33.27
16.33%
HQY
Healthequity
90.40
13.07
16.90%
PRVA
Privia Health Group
25.02
7.05
39.23%
DOCS
Doximity
59.19
35.82
153.27%
BTSG
BrightSpring Health Services, Inc.
22.82
11.58
103.02%
GE Healthcare Technologies Inc Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 3.54%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
GE Healthcare reported strong top-line growth and record orders, driven by robust demand in imaging and successful product launches. However, significant challenges remain due to tariff impacts on profit and cash flow, as well as market challenges in China.Q1-2025 Updates
Positive Updates
Record Double-Digit Orders Growth
GE Healthcare experienced record double-digit orders growth driven by strong U.S. market performance, particularly in imaging products for cardiology and oncology.
Strong Financial Performance
First quarter revenues were $4.8 billion with a 4% organic revenue growth. Adjusted EBIT margin increased by 30 basis points year-over-year, leading to a 12% year-over-year increase in adjusted EPS to $1.01.
Robust Demand in Imaging Segment
Imaging organic revenue grew by 5% year-over-year, and segment EBIT margin increased by 130 basis points due to productivity, volume, and price improvements.
Successful Product Launches
Launched Flyrcado, a new radiopharmaceutical product, and introduced Revolution Vibe, a dedicated cardiac CT system.
Significant Backlog Increase
Exited the quarter with a record backlog of $20.6 billion, an increase of $1.9 billion year-over-year.
Negative Updates
Tariff Impact on Profit and Cash Flow
Tariffs are expected to negatively impact adjusted EPS by $0.85 and adjusted EBIT by approximately $475 million for the full year.
Reduced Free Cash Flow Guidance
Free cash flow guidance for the full year was reduced to at least $1.2 billion from the prior expectation of $1.75 billion due to tariff payments.
Challenges in China Market
Anticipated mid-single-digit decline in China sales performance for the first half of 2025 with a low-single-digit decline for the full year.
Patient Care Solutions Segment Challenges
EBIT margin for the Patient Care Solutions segment declined by 450 basis points year-over-year due to investments, tariff impact, and product mix.
Company Guidance
During the GE HealthCare First Quarter 2025 Earnings Conference Call, the company provided updated guidance reflecting the impact of tariffs on their financial performance. The company reported an adjusted EPS impact of $0.85 due to tariffs for 2025, with a gross impact estimated at $1.75 per share before mitigation efforts. They have already managed to mitigate over 50% of the gross exposure, resulting in a net incremental impact of $0.80 per share, on top of the $0.05 impact included in February's guidance. GE HealthCare also forecasted full-year organic revenue growth between 2% and 3%, unchanged from prior estimates, and adjusted EBIT margin guidance was revised to a range of 14.2% to 14.4%, down from 16.7% to 16.8%. Additionally, the company anticipates delivering free cash flow of at least $1.2 billion for the full year, reduced from the previous expectation of $1.75 billion, primarily due to tariff-related costs.GE Healthcare Technologies Inc Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
GE Healthcare’s New $3.5 Billion Credit Agreements
Neutral
Mar 31, 2025
On March 27, 2025, GE Healthcare Technologies Inc. entered into two new credit agreements with JPMorgan Chase Bank, N.A., providing a total of $3.5 billion in senior unsecured revolving credit facilities. These agreements replace previous credit facilities and include various covenants and events of default, reflecting the company’s strategic financial restructuring. The termination of the previous credit agreements, which provided a combined $3.5 billion in credit, was completed without penalty, marking a significant shift in the company’s financial management approach.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.