Here is a short 10-Year analysis of General Electric (GE, Financial). The article gives investors an overview of the company’s financial history and business diversification, as well as the valuation level and dividend policy.
Company Profile:
General Electric is the world's largest diversified conglomerate. It operates within several industries with a major focus on industrial goods, financial services and electric technologies. Finally, GE has minor engagements in the diversified entertainment industry. GE accounts operations in five business divisions: Energy Infrastructure (25% of sales and 37% of earnings), Technology Infrastructure (26% of sales and 32% of earnings), NBC Universal (11 percent of sales and 12 percent of earnings), GE Capital (32% of sales and 17% of earnings) as well as Home and Business Solutions (6%of sales and 2% of earnings). On January 2011, General Electric sold its business unit NBC Universal to Comcast (CMSA) for USD $6.2 billion in cash and a remaining 49% stake in the newly formed entity NBCU LLC.
The company employs about 300,000 people and has operations in more than 100 countries. As of fiscal 2010, 53% of sales came from abroad.
Valuation of the Company:
Dividend Yield: 2.8%
Payout Ratio: 48.6%
5-Year Dividend Growth: -2.71%
Market Capitalization: 211 billion
Cash and Short Term Investments: $78.958 billion
Long-Term Debt: $360.681 billion
Cash flow from Operations: $36.123 billion
CAPEX: $9.800 billion
Long-Term Fundamentals:
Sales of GE increased with 18.13% over the past decade. Earnings before taxes and interest (EBIT) declined by 27.88% and net income finally grew in total -10.65%.
GE paid dividends since 1899. Due to the strong dividend cut in 2009, GE lost its title as Dividend Champion and counts now zero consecutive years of dividend increasing. The next ex-div. date is June 16, 2011. Payments will be received on July 25, 2011.
Competitors:
General Electric is major diversified and has in every division several competitors. On group perspective, rivals like German Siemens (SI, Financial) and Swiss ABB (ABB, Financial), which has strong operations in the electrical equipment industry, are near competitors. MMM (MMM, Financial), Emerson Electric (EMR, Financial) and aerospace focused company Honeywell (HON, Financial) are rivals too. For a detailed view of the conglomerate industry, take a look at my research about five high-yielding conglomerates.
Consensus Developments:
In accordance to Reuters, 18 analysts covered GE and submitted an outperform rating with a mean target price of USD $23.21 as of April 24, 2011. This value represents an upside of 16.3% compared to the close end price of April 21, 2011. The mean target price estimate for GE increased over the past 18 month by 36%.
Related Stock Ticker Symbols:
GE, SI, ABB, MMM, HON, EMR
Full Disclosure: Long GE
Related Articles:
· 5 High Yielding Conglomerates
· 10 Industrial Electrical Equipment Stocks With Highest Dividend-Yield
· 10 Dividend Champions - Part IX
· 11 Financial Large Caps With Highest Dividend Yield
Company Profile:
General Electric is the world's largest diversified conglomerate. It operates within several industries with a major focus on industrial goods, financial services and electric technologies. Finally, GE has minor engagements in the diversified entertainment industry. GE accounts operations in five business divisions: Energy Infrastructure (25% of sales and 37% of earnings), Technology Infrastructure (26% of sales and 32% of earnings), NBC Universal (11 percent of sales and 12 percent of earnings), GE Capital (32% of sales and 17% of earnings) as well as Home and Business Solutions (6%of sales and 2% of earnings). On January 2011, General Electric sold its business unit NBC Universal to Comcast (CMSA) for USD $6.2 billion in cash and a remaining 49% stake in the newly formed entity NBCU LLC.
The company employs about 300,000 people and has operations in more than 100 countries. As of fiscal 2010, 53% of sales came from abroad.
Valuation of the Company:
Dividend Yield: 2.8%
Payout Ratio: 48.6%
5-Year Dividend Growth: -2.71%
Market Capitalization: 211 billion
Cash and Short Term Investments: $78.958 billion
Long-Term Debt: $360.681 billion
Cash flow from Operations: $36.123 billion
CAPEX: $9.800 billion
Long-Term Fundamentals:
Sales of GE increased with 18.13% over the past decade. Earnings before taxes and interest (EBIT) declined by 27.88% and net income finally grew in total -10.65%.
GE paid dividends since 1899. Due to the strong dividend cut in 2009, GE lost its title as Dividend Champion and counts now zero consecutive years of dividend increasing. The next ex-div. date is June 16, 2011. Payments will be received on July 25, 2011.
Competitors:
General Electric is major diversified and has in every division several competitors. On group perspective, rivals like German Siemens (SI, Financial) and Swiss ABB (ABB, Financial), which has strong operations in the electrical equipment industry, are near competitors. MMM (MMM, Financial), Emerson Electric (EMR, Financial) and aerospace focused company Honeywell (HON, Financial) are rivals too. For a detailed view of the conglomerate industry, take a look at my research about five high-yielding conglomerates.
Consensus Developments:
In accordance to Reuters, 18 analysts covered GE and submitted an outperform rating with a mean target price of USD $23.21 as of April 24, 2011. This value represents an upside of 16.3% compared to the close end price of April 21, 2011. The mean target price estimate for GE increased over the past 18 month by 36%.
Related Stock Ticker Symbols:
GE, SI, ABB, MMM, HON, EMR
Full Disclosure: Long GE
Related Articles:
· 5 High Yielding Conglomerates
· 10 Industrial Electrical Equipment Stocks With Highest Dividend-Yield
· 10 Dividend Champions - Part IX
· 11 Financial Large Caps With Highest Dividend Yield
