GE Aerospace GE
GE Aerospace designs and manufactures aircraft engines and propulsion systems for commercial and military aviation, as well as providing maintenance and support services, with a business model based on equipment sales and a growing stream of recurring service revenue. GE Aerospace shows exceptional quality with an ROE of 48.23% and an ROIC of 27.51%, and solid growth of 21.10% in revenue, but its valuation is demanding (P/E 38.62, EV/EBITDA 30.47), which limits attractiveness despite its stable financial health (ND/EBITDA 0.90).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
GE Aerospace designs and manufactures aircraft engines and propulsion systems for commercial and military aviation, as well as providing maintenance and support services, with a business model based on equipment sales and a growing stream of recurring service revenue. GE Aerospace shows exceptional quality with an ROE of 48.23% and an ROIC of 27.51%, and solid growth of 21.10% in revenue, but its valuation is demanding (P/E 38.62, EV/EBITDA 30.47), which limits attractiveness despite its stable financial health (ND/EBITDA 0.90).
Score by category
| Category | Score |
|---|---|
| Financial health | 6.6 |
| Quality / Moat | 7.9 |
| Valuation | 2.2 |
| Growth | 7.9 |
| Dividend | 4.2 |
| Momentum | 7.0 |
| Risk & Context | 4.1 |
OVERALL SCORE: 5.5/10
Context and risks
The rise in 10-year Treasury yields (5.17%) affects GE due to its high P/E (38.62) and long-duration valuation, although its low leverage (ND/EBITDA 0.90) limits the impact. Geopolitical tension with Iran adds supply chain risk for aviation, but it is not a dominant factor.
News considered in the analysis
- GE Aerospace (GE) Ships Redesigned Engines to Boeing (BA). Can it Keep the 777X on Track? — El envío de motores rediseñados para el 777X es un hito operativo que reduce el riesgo de retrasos en un programa clave, aunque el impacto financiero es moderado y parte ya está en el precio.
- GE Aerospace Is Spending $12 Billion on an Acquisition. Is It Still the Best Aerospace Stock to Own? — La adquisición de 12 mil millones de dólares es una operación material que podría ampliar su cartera de servicios, pero el mercado ya la conoce y su efecto en valoración es incierto.
- General Electric (GE) Reaches GEK800 Cruise Missile Engine Ignition Milestone — El hito en el motor de crucero GEK800 refuerza su posición en defensa, un segmento con demanda estructural, aunque el impacto en beneficios a corto plazo es limitado.
- 3 Defense Stocks With Market Caps Up To $339 Billion — Listículo genérico sin información nueva sobre GE.
- Is Itron’s (ITRI) High-Margin Software Transition Built to Last? — Noticia sobre otra empresa, irrelevante para GE.
Verdict: Hold; quality and growth justify the premium, but the high multiple and rising rate environment limit near-term upside potential.
Main risk: The main risk is the demanding valuation (P/E 38.62) in a rising rate environment, which could compress the multiple if growth fails to meet expectations; dependence on key programs like the 777X adds execution risk.
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