GE (Update)
General Electric Co
Industrial/Transportation
03/06/2017
Presented
| Date | 03/01/2017 |
| Price | $30.19 |
| Market Cap | $268.72B |
| Ent Value | $374.05B |
| P/E Ratio | 29.17x |
| Book Value | $8.67 |
| Div Yield | 0.03% |
| Shares O/S | 8,901.00M |
| Ave Daily Vol | 30,335,620 |
| Short Int | N/A |
Current
| Price | $190.57 |
| Market Cap | $206.64B |
| General Electric Co. is a technology and financial services company that develops and manufactures products for the generation, transmission, distribution, control and utilization of electricity. Its products and services include aircraft engines, power generation, water processing, security technology, medical imaging, business and consumer financing, media content and industrial products. The company operates through eight segments: Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Appliances & Lighting and GE Capital. The Power & Water segment serves power generation, industrial, government and other customers worldwide with products and services related to energy production. The Oil & Gas segment supplies mission critical equipment for the global oil and gas industry, used in applications spanning the entire value chain from drilling and completion through production, liquefied natural gas and pipeline compression, pipeline inspection, and downstream processing in refineries and petrochemical plants. The Energy Management segment designs technology solutions for the delivery, management, conversion and optimization of electrical power for customers across multiple energy-intensive industries. The Aviation segment products and services include jet engines, aerospace systems and equipment, replacement parts and repair and maintenance services for all categories of commercial aircraft; for a wide variety of military aircraft, including fighters, bombers, tankers and helicopters; for marine applications; and for executive and regional aircraft. The Healthcare segment products include diagnostic imaging systems such as magnetic resonance, computed tomography and positron emission Tomography scanners, X-ray, nuclear imaging, digital mammography and molecular imaging technologies. The Transportation segment engages in global technology and supplier to the railroad, mining, marine and drilling industries. The Appliances & Lighting segment products include major appliances and related services for products such as refrigerators, freezers, electric and gas ranges, cooktops, dishwashers, clothes washers and dryers, microwave ovens, room air conditioners, residential water systems for filtration, softening and heating, and hybrid water heaters. The GE Capital segment offers financial services and products worldwide for businesses of all sizes, services include commercial loans and leases, fleet management, financial programs, credit cards, personal loans and other financial services. The company was founded by Thomas A. Edison in 1878 and is headquartered in Boston, MA. |
Please note, this is an update to General Electric Company (GE) - Short, which was originally presented on 11/16/2016 at $30.74.
Publicly traded companies mentioned herein: Comcast Corporation (CMCSA), General Electric Company (GE)
Highlights
The presenter remains short shares of General Electric (GE), and reiterated the key issue of poor cash flow conversion and a meaningful discrepancy between his calculated FCF/share in 2018 ($1.10-1.20 range) and where the consensus EPS estimate still stands (~$1.90). Additionally, he noted that GE has spent years structuring itself to not pay a lot in the way of taxes, and comprehensive tax reform could result in GE paying more (downside to his estimates). And, following GE’s 4Q 2016 earnings release in late January, 2017, he has greater conviction in the position. As time passes, the headwinds mount and earnings quality issue(s) becomes more apparent. He provided some incremental points as follows:
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.