The stock has nearly dropped 12% as a result of the negative news and people are saying that GE is no longer the investment people thought it was. Another reason for the sharp decline is many do not believe the plan outlined by the company will do enough to turn the company around. These results are causing investors and analysts alike to question if GE is a viable investment going forward.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include GE Aerospace income statement, its balance sheet, and the statement of cash flows. Potential GE Aerospace investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although GE Aerospace investors may use each financial statement separately, they are all related. The changes in GE Aerospace's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on GE Aerospace's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of GE Aerospace
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of GE Aerospace performance into the future periods or doing a reasonable stock valuation. The intrinsic value of GE Aerospace shares is the value that is considered the true value of the share. If
the intrinsic value of GE Aerospace is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares GE Aerospace. Please read more on our
fundamental analysis page.
How effective is GE Aerospace in utilizing its assets?
GE Aerospace reports assets on its Balance Sheet. It represents the amount of GE Aerospace resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, GE Aerospace aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Industrial Conglomerates space. To get a better handle on how balance sheet or income statements item affect GE Aerospace volatility, please check the breakdown of all its
fundamentals.
Are GE Aerospace Earnings Expected to grow?
The
future earnings power of GE Aerospace involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of GE Aerospace factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. GE Aerospace
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of GE Aerospace
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of GE Aerospace earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. GE Aerospace dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. GE Aerospace one year expected dividend income is about USD0.23 per share.
As of April 23, 2024,
Dividends Paid is expected to decline to about 559.5
M. In addition to that,
Dividend Yield is expected to decline to 0.01.
Investing in dividend-paying stocks, such as GE Aerospace is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in GE Aerospace must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for GE Aerospace. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
GE Aerospace Gross Profit
GE Aerospace Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing GE Aerospace previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show GE Aerospace Gross Profit growth over the last 10 years. Please check GE Aerospace's
gross profit and other
fundamental indicators for more details.
What is driving GE Aerospace Investor Appetite?
Taking a look at the revenue over the last several years, it has increased from $117.24B in 2014 to $119.86B in 2016, with a slight dip in 2015. Net income has moved slightly higher over the last few years, with the exception of 2015 as there was a large dip. From a technical point of view, the stock chart continues to decline, culminating with the last several days worth of losses. If the market believes the company is done, it will take something major on GE’s part to change their minds.
One the brighter side of things, GE plans to construct a new win farm that is located in Sweden and Finland, contributing to the ever-growing clean energy field. Clean energy is certainly on the minds of many companies as they grow and use more resources to operate.
Another reason for the issues is many are saying GE has become to complex and need to rebalance, taking a step back. Sometimes being involved in too many areas can have a negative return. The CEO stated that GE has remade itself before, which indicates the company may be heading down that road again, adjusting to market expectations.
All of that being said, GE has the potential to rebound and continue on the path of success. However, many items must change and the CEO is aware of that. As a potential investment, very serious due diligence is a must as the street is telling us the company’s value is being pushed lower. Look for potential discounts in the market compared to the competition. Alternatively, go ahead and look at the competition as many occupy this space. Regardless of the company, be sure to complete due diligence, understanding if this is the right fit for you.
As a last alternative, take a look at sector ETF products that have exposure to the company if you want to participant in potential upside moves. GE is a sound company but there are cracks in the foundation that if left unaddressed will bring the company down. The market still wants the stock to go lower but that may not be for long if the necessary changes are made.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of GE Aerospace. Please refer to our
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