GE
GE — Industrials
Graham: 12
Buffett: 84
Lynch: 14
General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and aircraft systems. The company operates through two segments, Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial...
Price ?
321.00
Market Cap ?
338.6B
P/E ?
39.83
P/B ?
18.02
Div Yield ?
0.45%
52W Range ?
159.36 - 332.79
200W MA ?
143.88
12
Graham-style buying rate (0-100)
Criteria breakdown
- ✓ Company size sufficient (large-cap) ? $338,595,250,176 — Uses market cap >= $2B as proxy
- ✗ Solid financial condition (CR>=2; LT debt <= NCAV) ? CR=1.04 | D/E=1.14 — Partial: checks current ratio; LT debt vs NCAV unavailable
- ✗ Uninterrupted dividends for 20 years ?
- ✗ No losses in last 10 years ? 10y window
- ✓ EPS growth >= 33% over 10 years ? ~1987%
- ✗ Price-to-Book (P/B) <= 1.5 ? 18.02
- ✗ Price-to-Earnings (P/E) <= 15 ? 39.8 — Uses trailing P/E as proxy for 3y avg EPS
- ✗ Combined formula (P/E * P/B) <= 22.5 ? 717.9
- ✗ Margin of safety >= 20% ? -166% — Intrinsic = EPS * 15
- ✗ High ROE maintained without excessive debt ? ROE=44.7% | D/E=1.14 — Approximate threshold ROE = 15%, D/E = 1.0
What is evaluated (Graham):
- Valuation discipline and buying below intrinsic value.
- Financial resilience: liquidity and prudent leverage.
- Consistent dividends and earnings over long horizons.
"The intelligent investor is a realist who sells to optimists and buys from pessimists." — Benjamin Graham
84
Buffett-style buying rate (0-100)
Criteria breakdown
- ✓ Positive and growing FCF (multi-year) ? 5,742,000,000 -> 9,810,000,000
- ✓ ROIC >= 12% sustained ? 33.5%
- ✓ High ROE (proxy for durable advantages) ? 44.7% — Consistency over years not checked
- ✓ Net profit margin >= 10% ? 19.0% — Derived from available financial filings
- ✗ Conservative leverage (D/E <= 1.0) ? 1.14
- ✓ Sustainable shareholder returns (dividend > 0%) ? 0.45% — Does not assess buybacks or payout safety
What is evaluated (Buffett):
- Durable advantages: high ROE, healthy margins.
- Balance discipline and shareholder friendly capital use.
- Positive free cash flow and efficient reinvestment.
"It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett
14
Lynch-style buying rate (0-100)
Criteria breakdown
- ? PEG ratio (P/E / growth) <= 1.0 ? — needs positive EPS growth
- ? Positive multi-year EPS growth (per-year >= 10%) ? — Requires positive EPS history
- ✗ Conservative leverage (D/E <= 0.5) ? 1.14
- ✓ Sustainable profitability (net margin >= 5%) ? 19.0%
- ✗ Earnings stability (no losses in 10y) ? 10y window
What is evaluated (Lynch):
- Growth at a reasonable price (PEG and EPS CAGR).
- Durable earnings with limited drawdowns.
- Conservative balance sheet and baseline profitability.
"Know what you own, and know why you own it." — Peter Lynch