GE - Embedded Expectations Analysis - 2021 03 15
General Electric Company (GE:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 40.6x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about revenue growth, their free cash flows, and the financial performance of their Aviation businessSpecifically, management may lack confidence in their ability to sustain margin improvements across segments, revenue growth in China, and double-digit order growth for transactional services. Furthermore, management may be downplaying concerns about the progress of their supply chain recovery initiatives and the lack of profitability for Power Conversion. They may also lack confidence in their ability to sustain strong overall free cash flow, control production-related costs, and improve bottom-line performance, particularly in Aviation and Insurance. Moreover, they may be concerned about the potential for additional airline failures due to credit deterioration
General Electric is a technology industrial company. The company's segments include: Power, which serves power generation, industrial, government and other customers with products and services related to energy production; Renewable Energy, which engineers and manufactures energy equipment and projects, grid solutions and digital services; Aviation, which designs and produces commercial and military aircraft engines, digital components, electric power and mechanical aircraft systems; Healthcare, which provides healthcare technologies; and Capital, which provides financial products and services that build on the company's industry capabilities in aviation, power, renewables, healthcare and other activities.
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