(GE) GE Aerospace - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE (USA) | Market Cap: 315.288m USD | Total Return: 32.2% in 12m
Avg Turnover: 1.49B
EPS Trend: 98.4%
Qual. Beats: 6
Rev. Trend: -62.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
GE Aerospace is a global manufacturer and service provider specializing in jet engines, avionics, and integrated systems for commercial and military aviation. The company operates through two primary segments: Commercial Engines & Services and Defense & Propulsion Technologies. Its business model relies heavily on a high-margin aftermarket services and maintenance, repair, and overhaul (MRO) tail, which typically provides recurring revenue over the multi-decade lifecycle of an engine.
The company maintains a significant global footprint, supporting diverse airframes through brands such as Avio Aero and Dowty Propellers. In the aerospace sector, high barriers to entry exist due to intensive research and development requirements and stringent regulatory certification processes for propulsion systems. For a deeper look into these competitive advantages, you may find ValueRays analysis useful. GE Aerospace remains headquartered in Evendale, Ohio, supporting civil and defense customers across six continents.
- Commercial aftermarket services demand drives long-term high-margin recurring revenue growth
- Supply chain constraints and labor shortages limit engine delivery volume targets
- Defense spending increases bolster propulsion technology and military engine contract backlogs
- Narrowbody aircraft production rates dictate Leap engine delivery and maintenance cycles
- Raw material price volatility and inflation impact manufacturing costs and margins
| Net Income: 8.66b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 2.26 > 1.0 |
| NWC/Revenue: 0.69% < 20% (prev 6.64%; Δ -5.95% < -1%) |
| CFO/TA 0.07 > 3% & CFO 8.85b > Net Income 8.66b |
| Net Debt (11.3b) to EBITDA (10.2b): 1.11 < 3 |
| Current Ratio: 1.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.05b) vs 12m ago -2.67% < -2% |
| Gross Margin: 34.82% > 18% (prev 0.38%; Δ 3.44k% > 0.5%) |
| Asset Turnover: 38.29% > 50% (prev 31.97%; Δ 6.32% > 0%) |
| Interest Coverage Ratio: 10.37 > 6 (EBITDA TTM 10.2b / Interest Expense TTM 863.0m) |
| A: 0.00 (Total Current Assets 40.4b - Total Current Liabilities 40.0b) / Total Assets 128b |
| B: 0.69 (Retained Earnings 89.1b / Total Assets 128b) |
| C: 0.07 (EBIT TTM 8.95b / Avg Total Assets 126b) |
| D: 0.77 (Book Value of Equity 84.6b / Total Liabilities 110b) |
| Altman-Z'' = 3.56 = A |
| DSRI: 0.97 (Receivables 14.9b/12.6b, Revenue 48.4b/39.7b) |
| GMI: 1.09 (GM 34.82% / 38.11%) |
| AQI: 0.98 (AQ_t 0.62 / AQ_t-1 0.64) |
| SGI: 1.22 (Revenue 48.4b / 39.7b) |
| TATA: -0.00 (NI 8.66b - CFO 8.85b) / TA 128b) |
| Beneish M = -2.82 (Cap -4..+1) = A |
As of May 23, 2026, the stock is trading at USD 301.76 with a total of 4,870,602 shares traded.
Over the past week, the price has changed by +7.57%,
over one month by +9.61%,
over three months by -10.53% and
over the past year by +32.21%.
GE Aerospace has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy GE.
- StrongBuy: 13
- Buy: 4
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 349.1 | 15.7% |
P/E Forward = 40.6504
P/S = 6.5259
P/B = 17.4358
P/EG = 7.2622
Revenue TTM = 48.4b USD
EBIT TTM = 8.95b USD
EBITDA TTM = 10.2b USD
Long Term Debt = 18.2b USD (from longTermDebt, last quarter)
Short Term Debt = 2.10b USD (from shortTermDebt, last quarter)
Debt = 22.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.97b
Net Debt = 11.3b USD (calculated: Debt 22.2b - CCE 11.0b)
Enterprise Value = 327b USD (315b + Debt 22.2b - CCE 11.0b)
Interest Coverage Ratio = 10.37 (Ebit TTM 8.95b / Interest Expense TTM 863.0m)
EV/FCF = 43.73x (Enterprise Value 327b / FCF TTM 7.47b)
FCF Yield = 2.29% (FCF TTM 7.47b / Enterprise Value 327b)
FCF Margin = 15.45% (FCF TTM 7.47b / Revenue TTM 48.4b)
Net Margin = 17.91% (Net Income TTM 8.66b / Revenue TTM 48.4b)
Gross Margin = 34.82% ((Revenue TTM 48.4b - Cost of Revenue TTM 31.5b) / Revenue TTM)
Gross Margin QoQ = 31.04% (prev 34.24%)
Tobins Q-Ratio = 2.54 (Enterprise Value 327b / Total Assets 128b)
Interest Expense / Debt = 3.88% (Interest Expense 863.0m / Debt 22.2b)
Taxrate = 11.46% (252.0m / 2.20b)
NOPAT = 7.93b (EBIT 8.95b * (1 - 11.46%))
Current Ratio = 1.01 (Total Current Assets 40.4b / Total Current Liabilities 40.0b)
Debt / Equity = 1.23 (Debt 22.2b / totalStockholderEquity, last quarter 18.1b)
Debt / EBITDA = 1.11 (Net Debt 11.3b / EBITDA 10.2b)
Debt / FCF = 1.51 (Net Debt 11.3b / FCF TTM 7.47b)
Total Stockholder Equity = 18.7b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.86% (Net Income 8.66b / Total Assets 128b)
RoE = 46.39% (Net Income TTM 8.66b / Total Stockholder Equity 18.7b)
RoCE = 24.30% (EBIT 8.95b / Capital Employed (Equity 18.7b + L.T.Debt 18.2b))
RoIC = 8.76% (NOPAT 7.93b / Invested Capital 90.5b)
WACC = 9.19% (E(315b)/V(338b) * Re(9.60%) + D(22.2b)/V(338b) * Rd(3.88%) * (1-Tc(0.11)))
Discount Rate = 9.60% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -90.80 | Cagr: -2.08%
[DCF] Terminal Value 75.29% ; FCFF base≈6.24b ; Y1≈7.16b ; Y5≈10.5b
[DCF] Fair Price = 121.5 (EV 138b - Net Debt 11.3b = Equity 127b / Shares 1.04b; r=9.19% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 98.42 | EPS CAGR: 41.67% | SUE: 3.30 | # QB: 6
Revenue Correlation: -62.35 | Revenue CAGR: -8.32% | SUE: 0.52 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.85 | Chg30d=+2.45% | Revisions=+26% | Analysts=17
EPS next Quarter (2026-09-30): EPS=2.10 | Chg30d=-3.61% | Revisions=-64% | Analysts=7
EPS current Year (2026-12-31): EPS=7.56 | Chg30d=+1.28% | Revisions=+58% | GrowthEPS=+18.7% | GrowthRev=+14.9%
EPS next Year (2027-12-31): EPS=9.20 | Chg30d=-3.07% | Revisions=+0% | GrowthEPS=+14.2% | GrowthRev=+9.9%
[Analyst] Revisions Ratio: -64%