NYSE:GE
$15.61
(2/9 3:00PM)
+0.1%
| Open | $15.76 |
Mkt Cap | $166.1 Billion |
| High | $15.89 |
52Wk High | $17.52 |
| Low | $15.43 |
52Wk Low | $5.73 |
| Volume | 75.8 Million |
Avg Vol 10D | 87.6 Million |
Ockham's Rating/Recommendation Summary
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GE Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, GE the high and low end of the Price to Sales per share ratios are 2.36x and 1.54x respectively.
Notice that GE's current Price to Sales per share ratio is 1.07x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $15.79, GE is 45% below where we would expect to see it. This will beneficially factor into our final analysis of GE as it is not often that this stock sinks to these levels.
GE Cash Earnings
Looking at GE specifically in their Cash Earnings capabilities, Ockham views GE as significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from GE. For example, GE's Cash Earnings ratio per share has fluctuated between 9.01 and 14.34 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where GE is with respect to prior business periods.
So with GE's current price (latest close of $15.79) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, GE is 37% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with GE.
GE Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for GE, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. GE’s estimated annual dividend is $0.40 resulting in a current dividend yield of 2.53%. The highest dividend yield from GE over recent history was 10.65% while the lowest dividend yield was 1.19%. It is never a good sign for a company to pay significantly lower dividends, in this case 57.26% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
See More News on GE from Closing Bell
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on GE from Closing Bell.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Closing Bell said about GENERAL ELECTRIC COMPANY
Learn About RazorWire?The Razor's Edge: A Discussion on High Quality Stocks and General Electric Company
Bellwether stocks are those that give you are good indication of the direction of their industry and the economy. The Razor's Edge mentioned General Electric Company in their discussion of blue chip stocks.
At present, Ockham has a valuation stance of Undervalued on GE, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, General Electric Company has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… United Technologies has avoided much of the difficulty that have befallen competitor and fellow Dow component GENERAL ELECTRIC (GE) due to their highly leveraged financial unit. …”
See More News on GE from Power Lunch
General Electric Company is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Power Lunch.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about GENERAL ELECTRIC COMPANY
Learn About RazorWire?Felix Salmon Reuters: Get Plugged into GE News Regarding The CEO
Keeping up with a CEO is one way that we try to better understand the direction of a company, and there was talk about GE management on Felix Salmon Reuters.
Based on our methodology, General Electric Company should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of GE, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… 15, 2008, the day Lehman Brothers declared bankruptcy, Paulson says he was “startled” when Immelt came to his office and told him GE was finding it “very difficult” to sell ... …”
Notice a Discussion Covering GE Appeared Recently in the Financial News
The latest news on WSJ Marketbeat in regards to GE came through on RazorWire recently.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on GE, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, General Electric Company has actually sunk a bit in comparison to the others. Investors are headed for the exit following today's news as the stock is trading down $0.97.
“… foreign buyers. GENERAL ELECTRIC’s 4.6 decline is weighing on the S&P and energy giants Exxon Mobil and Chevron are also …”
News on GE From the Pundits on Power Lunch
News has broken via the television and viral blogs regarding GE, so investors should take an interest in learning what was said.
The Motley Fool CAPS data suggests that investors believe General Electric Company will beat the market in the foreseeable future. We consider GE as Undervalued at the current price of $15.51. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GE has been less covered in the news compared to the rest of our universe of stocks.
“… Weakest members of the dow, GE, our parent company, off 3 1/2%. Merck and jpmorgan down 1 3/4% each. > > > more than 8 million people have lost their jobs since the recession ... …”
Power Lunch: What is Happening with General Electric Company Now?
The latest news on Power Lunch in regards to GE came through on RazorWire recently.
Based on our methodology, General Electric Company should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; GE has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Bank of america, GE, ford, pfizer, all lower across the board in the sell-off. The dow off 200 points. With fidelity, you can take your trading around the world, because now ... …”
Dividends and General Electric Company Among the Topics Covered on Fast Money
Dividends are a management decision and can be seen as a signal of strength or weakness depending on the latest news. RazorWire captured a discussion of GE's dividends recently on Fast Money.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GE has been less covered in the news compared to the rest of our universe of stocks. We consider GE as Undervalued at the current price of $16.74. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe General Electric Company will beat the market in the foreseeable future.
“… I tend to be a buyer of GE. I tend to be a seller of goldman sac sachs. > > dennis, I tend to agree. It's joe, by the way. > > hey, joe. > > …”
News Breaking on General Electric Company on Power Lunch
General Electric Company is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Power Lunch.
In comparing news flow statistics for the various companies we follow through RazorWire, we can tell you that GE ranks just about where it normally does. The Motley Fool CAPS data suggests that investors believe General Electric Company will beat the market in the foreseeable future. We consider GE as Undervalued at the current price of $16.72. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… So you know, bring in a little GENERAL ELECTRIC, that's okay. > > will you take toyota? Given what's going on. > > we'll take toyota, GENERAL ELECTRIC. …”
Power Lunch Discussed the Latest Development of General Electric Company
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to General Electric Company.
At present, Ockham has a valuation stance of Undervalued on GE, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. In comparison to the other stocks that we follow, General Electric Company has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… Any stock except GE and it ain't worth that much lately. > > we can pay. > > we'd like to have you come in. We'll be more than happy to take your stock. > > …”