GE - Embedded Expectations Analysis - 2021 10 26
General Electric Company (GE:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 29.6x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may be concerned about order growth, revenue and free cash flow guidance, and the implementation of their decentralization strategy.Specifically, management may have concerns about their decentralization strategy, the impact of green time utilization, and the size of the backlog for their vendor base and their own processes. In addition, they may lack confidence in their ability to meet Power Service revenue targets, achieve their free cash flow guidance, and ramp up growth investments. Furthermore, they may be concerned about the impact of exiting their factoring programs, the timing of deliveries, and lower turnkey scope projects.
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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