GE Investment Analysis Report & Stock Research, General Electric Company

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General Electric Company (GE)

GE Stock Report

2-Year Price History

Recent Price
(6/23 4:00PM) +0.7%
$11.60
52-Week Price
$5.73 - $30.39
Market Capitalization
$122.0 Billion
Dividend Yield
3.50%
Most Recent Dividend
$1.24

A Word Of Caution

The Ockham Research Team has placed an alert on this security because there have been significant developments associated with General Electric Co. (GE). Eventually, these externalities may have an impact on our valuation but these recent events have not yet been fully factored into our analysis.

Please take a moment to look at the RazorWire feed on the right hand side of the report. Each mention of General Electric Co. on business television will be displayed to the right of the report. This should help bring you up to speed on any major issues they are facing right now.

Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect these significant factors surrounding this company as our data sources are still being updated. This alert shall remain in effect until the situation surrounding this security normalizes substantially.

Therefore, (and as always), check additional sources and available information regarding GE before making an investment decision.

Ockham's Rating

Rating specific information requires Premium Access.
Buy Now or Take the Tour.

GE Revenue

As we have often noted, in our valuation methodology, "Cash is King." Well, 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 2.55x and 1.71x respectively.

Notice that GE's current Price to Sales per share ratio is 0.60x, 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 $12.10, GE is 72% 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

As the old saying goes, "Cash is King!" However, we prefer to capture a few other items within our analysis to identify "cash earnings". Nevertheless, an analysis of Cash Earnings is absolutely pivotal to assessing a company's value, and currently GE is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for GE, the current level of Cash Earnings compared to its historical levels helps identify where GE is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 14.84 and a historical low Cash Earnings per share ratio of 9.86, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for GE? From the Ockham perspective, we are looking specifically at GE to see if the market is recognizing the huge disparity between GE's past stock price to Cash Earnings ratio to today's levels. At a difference of 63% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at GE. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

GE Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.

Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from GE against the historic high and low levels over an available data range. Because GE has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In GE’s case, the estimated annual dividend is $0.40 producing a current dividend yield of 3.31%. The highest dividend yield from GE in recent history was 9.81% while the lowest dividend yield was 0.91%. With that range in mind, GE’s current dividend yield is a full 38.25% below its median dividend yield historically. This is a negative from our perspective.

Peer Comparison

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General Electric Company Industry Grouping

(6/22/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding GE) 8.60 6.17 » 20.60 1.17 0.77 » 2.47 23.22% 20.72%
*10 year range does not include current year values
General Electric Company GE $122.0 Billion $11.52 4.69 4.63 » 29.35 0.60 0.73 » 4.64 6.55% 16.86%
United Technologies Corp. UTX $49.5 Billion $52.58 8.81 6.54 » 15.87 0.85 0.68 » 1.62 13.57% 21.88%
3M Company MMM $39.9 Billion $57.47 9.94 7.50 » 19.92 1.51 1.37 » 3.68 6.75% 33.88%
Mitsui & Co., Ltd. MITSY $21.2 Billion $233.10 4.21 2.37 » 15.27 1.65 0.25 » 3.06 64.06% 12.66%
Danaher Corp. DHR $19.0 Billion $59.47 12.09 9.04 » 21.16 1.42 1.18 » 2.68 19.12% 15.84%
PPG Industries, Inc. PPG $6.9 Billion $41.66 7.92 5.38 » 30.77 0.43 0.37 » 1.32 12.60% 19.36%
>
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The latest TV Media Discussion

6:36:32 PM GE $11.56 General Electric Company
Mad Money
7 hours ago (06/23)
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6:35:50 PM GE $11.56 General Electric Company
Mad Money
7 hours ago (06/23)
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3:13:58 PM GE $11.58 General Electric Company
10 hours ago (06/23)
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1:47:22 PM GE $11.55 General Electric Company
12 hours ago (06/23)
“…They call the wide body plan a the stock off its lows of the session, stuart, but intense traders out there are are a couple things you wanna watch. Technically that stock is sitting on its 200 day moving GE. A about volumes. This stock doing nearly three times its average trading volume a lot of participation on the selloff, on the news. >> stuart: 43. …” …more details…
11:07:55 AM GE $11.29 General Electric Company
15 hours ago (06/23)
“…On the dow, you'll see, is boeing and that's what's really weighing on the markets rights now. Along with alcoa, the aluminum producer, american express, home depot and GENERAL ELECTRIC, these are the biggest laggards, as you can see, boeing the biggest win on the dow right now, brian. >> brian: sandra smith. Sandra, thank you very much. Let's get more on the markets …” …more details…
10:41:12 AM GE $11.39 General Electric Company
15 hours ago (06/23)
“…They'll have more choices and it will be cheaper for them >> but my only concern is if you're going to buy these them. >> you can't -- >> it's not like a share of GE or sitcitigroup, there are wrinkles and must know what they are. >> inverse etfs have tracking problems an issues that has to do with the way they're set up. This is a completely different discussion but i'll be happy to …” …more details…
8:38:20 AM GE $11.63 General Electric Company
17 hours ago (06/23)
“…Say to yourself it hasn't gone down even though it hasn't gone >> I think computers as a whole hardware technology is a very strong and leading sector during this economic recovery. I like intel. Charles: economic recovery, GE they have been synonymous with each other jeff immelt the ceo saying they are not going to spin off their financial arm. A lot of speculation over that. But at the the same token coming out harsh of the new regulations it is interesting because he is on one of several teams that the president has put together. What do you make of decision not to spin off GE capital and what do you make of his criticism of the the white house? >> we're not talking about commercial banking and investment banking we're talking about commercial services division and financing arm. I don't see why the regulation would make them have to split off GE capital. Charles: could you see where the person outside watching saying GE capital really had no one watching them. The federal reserve up until now watched the bank holding companies it is the GE capital and gmacs in the world got in a lot of trouble with no one watching at all should someone be watching it and whether or federal reserve? >> I would just argue if someone was watching them it could have …” …more details…
3:16:23 PM GE $11.61 General Electric Company
1 days ago (06/22)
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12:15:39 PM GE $11.56 General Electric Company
1 days ago (06/22)
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11:46:31 AM GE $11.62 General Electric Company
1 days ago (06/22)
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11:45:42 AM GE $11.61 General Electric Company
1 days ago (06/22)
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9:31:33 AM GE $11.83 General Electric Company
1 days ago (06/22)
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9:26:50 AM GE $11.82 General Electric Company
1 days ago (06/22)
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4:34:11 PM GE $12.10 General Electric Company
4 days ago (06/19)
“…Down on all that. But the fact of the matter is that that is something that you have to ask yourself. Whether a company that's in the business should be in the credit business as well. People are asking that about GENERAL ELECTRIC. >> mike? >> I think that it's been a part of their business model for a they've done a good job at it. They know the product better than anyone. And if they have to constantly go back and take the collateral, …” …more details…
10:57:14 AM GE $12.10 General Electric Company
4 days ago (06/19)
“…And the s&p kind of splitting the difference up about 9/10 of 1%. Let's check the most actives on the big board. GE and citigroup and pfizer to the plus side. Bank of america and at&t on the negative side. >> and mark -- oh-oh, there's the nasdaq. …” …more details…
10:37:34 AM GE $12.03 General Electric Company
4 days ago (06/19)
“…Worried that they need a little more time to get the network in now, you might say, well, they're apple's close partner, they've known this was coming and why didn't GE thet the network in shape by now? The answer is I don't know. People are annoyed and I think it will be later this summer on …” …more details…
8:16:48 AM GE $12.20 General Electric Company
4 days ago (06/19)
“…Their friends. >> looked at where it is when the numbers come out. A royal rumble for the wwe? And GENERAL ELECTRIC going up against the sec and chris carter has the breakdown what the story is about. The supreme leader of iran is making a decisive decision and …” …more details…
7:58:10 AM GE $12.06 General Electric Company
4 days ago (06/19)
“…We will talk about that in just a moment also a deal with "the donald", potentially landing the wwe as well as GENERAL ELECTRIC in hot water with federal regulators. Chris carter stepping into the ring and well put down the smack down on the two …” …more details…
5:17:41 PM GE $11.97 General Electric Company
Happy Hour
5 days ago (06/18)
“…I see charlie gibson, whoever, tom brokaw, doing this as infomercial. Cody: rick, you look at this stuff, I guess what I come back to, GE already borrowing $120 billion off of fdic insured backing, welfare money. Entire media, whether it is GE, abc, disney, whatever, they're all owned by the is this point moot? Is there a difference between republicans and democrats stance anyway? >> I think point comes down to, what we want to do is …” …more details…
1:10:10 PM GE $12.03 General Electric Company
5 days ago (06/18)
“…I happen to think that the moves and impulse he made in that moment in those dark days were absolutely critical, and I think they are heroes for it. >> that's our former boss here at GENERAL ELECTRIC -- >> I still agree with him. >> jack welsh. >> it's just hardwired. >> automatically. >> I agree. I think what jack says, there's great argument there. …” …more details…
7:44:54 AM GE $12.30 General Electric Company
Squawk Box
5 days ago (06/18)
“…Talk back to you -- >> absolutely. >> well, they're digging ditches somewhere now. >> they're running boeing, they're doing all kind of jobs. >> everybody did. >> they're running GE. >> in the same way? >> they yelled at you? >> can I do that? >> yeah, you always did. >> yeah, I know, you're right. >> one thing you found, though, is very clearly, with this case …” …more details…
7:09:08 AM GE $12.30 General Electric Company
Squawk Box
5 days ago (06/18)
“…>> the market, even when the market was up, it was down. >> the market was flat yesterday, roughly down. >> even when it was down or up, it was from the gate -- >> you are watching GE a lot more closely -- >> forks it was the second most active stock on the new york stock exchange and it was down 4% in a market that went between positive and negative. I mean, there was something going on yesterday. …” …more details…
7:08:45 AM GE $12.30 General Electric Company
Squawk Box
5 days ago (06/18)
“…Regulators last time around. >> not with the backdrop -- the reason i'm talking about the systematic thing, you saw GENERAL ELECTRIC's stock, they tied that fairly significant haircut -- >> did they have a haircut I didn't see it. >> it was down 50 cents people worried with GE capital is a systematically important entity and could now come under there it is right there. Is that a worry for GE? >> I don't know. I'm not there. >> I know, but do you think it >> no, they'll deal with it fine. >> that made no sense yesterday to see it -- …” …more details…
6:50:19 PM GE $12.28 General Electric Company
Mad Money
6 days ago (06/17)
“…Let's see what we have here. Okay, dominion is my favorite, i've got to tell you. There was some interesting news today about, oh, about nuclear being backed by the federal government and neither GE, which parent company of this network, is involved in making power plants, or the group went up. Shah group went up made me think of that because dominion is a clean energy …” …more details…
3:58:48 PM GE $12.23 General Electric Company
6 days ago (06/17)
“…Administration concerning the banks and the s&p cutting the credit ratings on the bank. Big picture on the dow, losers GENERAL ELECTRIC, alcoa, american express. Winners, home depot, pfizer. Today, s&p downgraded 18 banks and junking five of them. …” …more details…
3:34:10 PM GE $12.22 General Electric Company
6 days ago (06/17)
“…Traded names in the s&p are actually in the financial sector. You also see other names in ford motors in there. Microsoft in the top ten. Bank of america, citi, GENERAL ELECTRIC, wells the heavily traded stocks. Today, we're likely to see the action here in the last half hour of trading. Now to the nasdaq and shibani joshi. …” …more details…
1:26:40 PM GE $12.36 General Electric Company
6 days ago (06/17)
“…Think we need to be cautious as we go forward. The obama administration has put forward an 80-plus page white paper on this. We're just starting to look at a lot of details are missing, and I think there's a long way to go before we GE to a final product on this. Much. >> thank you. >> join us again soon. >>> goldman sachs just paying back their $10 billion in t.A.R.P. Money. …” …more details…
2:40:51 PM GE $12.76 General Electric Company
7 days ago (06/16)
“…Looking to pin that stock at 12 1/2. Recognize that today is a very important day and there is a lot of options squaring. GE can hit 12 1/2. Bank of america can hit 12 1/2 and jpmorgan hit the other way. It's in when the volume is this light. …” …more details…
12:57:16 PM GE $12.84 General Electric Company
7 days ago (06/16)
“…Bring to your attention the s&p 500 that at session lows by 8/10 of a percent. The dow is at session lows. There a number of big moves to the downside. GENERAL ELECTRIC, the parent company is down by more than 2% at this time and fedex ahead of the earnings is a mover as well at session lows ahead of the …” …more details…
11:10:27 AM GE $13.13 General Electric Company
7 days ago (06/16)
“…>> I think on too much risk, what they look for is the high yield there. They're afraid of the fms, afraid of the big caps, you mentioned a couple, bank of america, citi, GE, pfizer, they've cut and looking at other spots and preferred have always been a welcome area because they represent a fixed and more secure item, gep, they don't …” …more details…
6:24:25 PM GE $13.14 General Electric Company
Mad Money
8 days ago (06/15)
“…We're even looking at how we can place the ads directly from our servers on to the network using our new force.Com platform. You've got a fantastic team there and we're excited to be working with GENERAL ELECTRIC. >> as chairman of the street.Com, we brought in >> amen, thank you, jim. >> yes, absolutely. I like to disclose this stuff because you have to understand why the heck i'm excited about some company that other guys are …” …more details…
6:24:02 PM GE $13.14 General Electric Company
Mad Money
8 days ago (06/15)
“…Everybody else is losing share and everybody else's business is in decline. Before all of these analysts freak out, they ought to can you tell people what you're doing. I work for GENERAL ELECTRIC, what the exciting thing you're doing with our company is? >> well, we've had tremendous success with GENERAL ELECTRIC, and traditionally has been standardized on on premise but now, some of your divisions including GE capital or the division you have with nbc >> that's what I want to talk about. >> standardized on so you're able to not only manage your sales operations and your sales force systems, but …” …more details…
5:14:08 PM GE $13.15 General Electric Company
Fast Money
8 days ago (06/15)
“…I think caterpillar -- >> and melissa we talk about laggers, talk about foster they finally caught up last but before the oih move, it was the industrials. Look what honeywell and GE have done. Then it was the oil sector, then it was the rest of the but everybody caught up and it's time for some of that profit who is leading the charge down …” …more details…
5:13:13 PM GE $13.15 General Electric Company
Fast Money
8 days ago (06/15)
“…>> I do put this thing on each night. I tell you, my hands are shot. >> let's move on to the next the bigger they are, the harder they fall. Industrials were clobbered, each down about 5%. GE traded 3% lower although we did get positive commentary from GE capital, GE, by the way, the parents of this network. >> and I think this is where you use the 200-day moving average. It could not get above the 200-day move when each of the other sectors were actually doing it. …” …more details…
9:18:10 AM GE $13.35 General Electric Company
8 days ago (06/15)
“…Side of things and delivery that is still looking fairly stronger. You are going to see a lot of deferrals and some cancelations. Talking about cancelations here. The order book is very, very strong. Look at engine manufactures, GE, our company, and rolls royce, these guys have programs which mean they look after the engine the entire life cycle. I've been talking to the head of GE's engine division, GE aerospace. When it comes to the servicing side of things, they are seeing the numbers going up. There is a definite silver the mood is quite grim. …” …more details…
2:01:55 PM GE $13.40 General Electric Company
11 days ago (06/12)
“…Server connectivety problem. Those 240 stocks, many of the names we are well familiar with. Exxon, GENERAL ELECTRIC. They will bring the names and put them back in action. The order flow is lighter now because we have other stages who would normally route their ordinaries here basically not doing that or some of them. …” …more details…
12:35:51 PM GE $13.33 General Electric Company
11 days ago (06/12)
“…The stock shortly after 12:30 -- I mean 11:30. What happened was several dow components were halted, names lick american express, bank of america, exxon, merck and GENERAL ELECTRIC. Those were among the 240 names, they're bringing them back. …” …more details…
12:35:23 PM GE $13.33 General Electric Company
11 days ago (06/12)
“…Problems at the new york stock nicole petallides, bring us up to date. >> i'm standing here at the GENERAL ELECTRIC post. What they're doing is monitoring these names one by one. I have some good news and some bad news pertaining to what we've seen here at the new york …” …more details…
12:19:54 PM GE $13.35 General Electric Company
11 days ago (06/12)
“…This is a very big deal. At least four dow components, at&t also a dow component, that would make it five dow components. Indications going up. GENERAL ELECTRIC indications, 1325 to 1375. That's around the last trade of 1336. Hovering. Neither higher nor lower for the last trade for GENERAL ELECTRIC. GENERAL ELECTRIC, bank of america, exxon, mercks. They are dow components, all halted over this last half hour of trading. What they are doing, slowly getting these names back into -- merck has resumed …” …more details…
View All General Electric Company News

Key Fundamentals

GE - General Electric Company Fundamentals
Price (6/23 4:00PM) $11.60
Volume (6/23 4:00PM) 87.0 Million
Last Close Price $11.52
10 Day Average Volume 94.5 Million
13 Week Price Range $9.78 - $14.55
52 Week Price Range $5.73 - $30.39
LTM Revenue $178.7 Billion
 
Shares Outstanding (12/2008) 10.6 Billion
Market Capitalization $122.0 Billion
Shares Held By Institutions 5.6 Billion
Institutional Holders 2,152
% Shares Held By Institutions 52.40%
Earnings Per Share (EPS) $1.78
P/E Ratio 7.20
Book Value Per Share $9.54
 
Gross Margin 53.60%
Annual Dividend 0.40
Dividend Yield 3.50%
Beta 1.44
Fiscal Year Ends December

About General Electric Company

General Electric Company is considered to operate in the Conglomerates sector. They specifically operate in the Conglomerates business segment contained within the Conglomerates industry.

A technology, media & financial services company, with products & services ranging from aircraft engines, power generation, water processing & security technology to medical imaging, business & consumer financing, media content & industrial products.

NASDAQ 1764.92

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