Category Archives: GE
GE 22Q1 Update
Since reporting disappoint 22Q1 results on April 26, GE’s stock has fallen sharply. Year-to-date, GE’s stock is down 22.6%, worse than the S&P 500 Industrial sector’s 11.7% decline.
GE: 2020 Third Quarter Earnings Review
General Electric reported a 2020 third quarter GAAP loss of $1.16 billion or $0.13 per share on revenues on revenues of $19.4 billion, down 17%. In the 2019 third quarter, the company reported a comparable net loss of $1.3 billion … Continue reading
GE 20Q3 Earnings Preview and Outlook
Shares of GE have underperformed both the broader market and GE’s industrial peer group since the onset of the COVID-19 pandemic. The weak performance reflects primarily the company’s exposure to the aviation business, which prior to the pandemic was GE’s … Continue reading
Deep Dive on GE: Sum-of-the-Parts Valuation
As noted in a previous post, it is most appropriate to value GE as a single, stand-alone enterprise. Several unifying investment themes support this view:
Deep Dive on GE: GE Capital
In April 2015, partially in response to the regulatory restrictions that accompanied GE Capital’s designation as a systemically important financial institution by the Financial Stability Oversight Council, GE adopted the GE Capital Exit Plan, under which it planned to reduce … Continue reading
Deep Dive on GE: Consolidated Enterprise Valuation
In my view, the most appropriate way to look at GE’s stock valuation is to consider the company as a single enterprise. In this analysis, I compare its current valuation to peers. My calculations for GE’S enterprise value-to-EBITDA multiple at … Continue reading
Deep Dive on GE: Projected 2020 Consolidated Results
Based upon management’s guidance given at General Electric’s 2020 Outlook meeting on March 4th, I project 2020 Industrial Leverage EBITDA of $11.6 billion, up roughly 3% from 2019. Industrial Leverage EBITDA was given in the appendix to the company’s 2020 … Continue reading
Deep Dive on GE: The 2020 Outlook for its Businesses
Given the complexity of its business mix and financial structure, valuing GE is not an easy exercise even under benign economic conditions. The task is made even more difficult when there is considerable uncertainty about prospects for the global economy.
Though It Might Be Delayed, GE’s BioPharma Sale is Set to Close
GE’s stock has been battered during this sell-off, falling much more than the broader market as a whole. Since reaching an intra-day peak of $13.26 on February 12 (roughly one month ago), the stock has fallen 40.8% to its March … Continue reading
NYT Magazine Article on the Boeing 737 Max
The cover story in this week’s Sunday New York Times Magazine is “What Really Caused the Deadly Crashes of the Boeing 737 Max?“. While acknowledging that malfunctions caused the crashes, it also documents in detail the errors made by the … Continue reading