GE Stock Risk & Deep Value Analysis
General Electric Co
Industrials • Aerospace & Defense
DVR Score
out of 10
What You Need to Know About GE Stock
We analyzed General Electric Co using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran GE through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
GE Risk Analysis & Red Flags
What Could Go Wrong
The primary risk is a global economic downturn or a major disruption to air travel, which would significantly impact GE Aerospace's commercial engine and services segments, leading to reduced orders and aftermarket revenue. Given the long product cycles and capital intensity, recovery could be slow.
Risk Matrix
Overall
Moderate
Financial
Low
Market
Medium
Competitive
Medium
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
GAAP profit margin declined 490 bps YoY in Q1 2026, despite increased operating profit dollars.
- ⚠
High current valuation multiples for a mature industrial may limit future multiple expansion.
Upcoming Risk Events
- 📅
Global economic slowdown impacting air travel
- 📅
Significant geopolitical conflict disrupting supply chains or defense budgets
When to Reconsider
- 🚪
Exit if year-over-year adjusted revenue growth falls below 10% for two consecutive quarters.
- 🚪
Sell if management's full-year guidance for operating profit or free cash flow is significantly lowered.
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What Does General Electric Co (GE) Do?
Market Cap
$299.72B
Sector
Industrials
Industry
Aerospace & Defense
Employees
53,000
General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The company operates through two reportable segments, Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial Engines & Services segment designs, develops, manufactures, maintenance, repair, and overhaul (MRO) services of jet engines and sale of spare parts for commercial airframes, business aviation, and aeroderivative applications. The Defense & Propulsion Technologies segment provides designs, develops, manufactures, and MRO services jet engines and avionics and power systems for governments, militaries and commercial airframers, as well as sale of spare parts. This segment also offers small turboprop engines, aeroengine mechanical transmissions, turbines, combustors and controls, additive manufacturing, propeller systems, ignition systems, sensors and engine accessories for both fixed wing and rotorcraft applications. The company operates in the United States, Europe, China, rest of Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.
Visit General Electric Co WebsiteInvestment Thesis
GE Aerospace is a high-quality, durable compounder benefiting from a strong recovery in global air travel and consistent demand from defense sectors. Its dominant market position, expansive installed base, and high-margin service contracts provide predictable revenue and strong free cash flow generation. While not a 10x growth candidate due to its maturity and scale, it offers stability and consistent performance for a long-term, moderate-growth portfolio segment.
Is GE Stock Undervalued?
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GE Price Targets & Strategy
12-Month Target
$278.00
Bull Case
$310.00
Bear Case
$235.00
Valuation Basis
Based on 29x forward P/E applied to estimated FY26 EPS of $9.59 (analyst consensus after Q1 beat).
Entry Strategy
Consider dollar-cost averaging on pullbacks to the $250-$260 range, which could represent a re-test of recent support levels if the market multiple compresses slightly.
Exit Strategy
Profit-taking initiated at $300-$310, with a stop-loss order placed if the stock closes below $245, indicating a breakdown of recent support.
Portfolio Allocation
3% for moderate risk tolerance, reflecting its status as a high-quality industrial compounder rather than a speculative growth play.
Price Targets & Strategy
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Is GE Financially Healthy?
Valuation
P/E Ratio
34.73
Forward P/E
24.90
EV/EBITDA
18.70
PEG Ratio
2.16
Price/Book
7.90
Price/Sales
4.80
Profitability
Gross Margin
34.28%
Operating Margin
16.66%
Net Margin
17.86%
Return on Equity
46.22%
Revenue Growth
21.75%
EPS
$8.12
Balance Sheet
Current Ratio
1.04
Quick Ratio
0.74
Debt/Equity
1.10
Total Debt
$34.90B
Cash & Equivalents
$14.00B
Cash Flow
Operating Cash Flow
$8.40B
Free Cash Flow
$6.50B
EBITDA
$9.30B
Other
Beta (Volatility)
1.38
Dividend Yield
0.64%
Does GE Have a Competitive Moat?
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🏰 Wide
Moat Trend
Stable
Moat Sources
4 Identified
GE Aerospace benefits from a highly durable moat due to the immense capital, technological expertise, and regulatory hurdles required to design, manufacture, and certify aircraft engines. Airlines are effectively locked into long-term service agreements post-purchase, ensuring recurring, high-margin revenue.
Moat Erosion Risks
- •Emergence of truly disruptive propulsion technologies (e.g., sustainable aviation fuels, hybrid-electric) that could bypass current engine architectures
- •Major global economic shifts that severely impact long-term demand for air travel and defense aircraft.
GE Competitive Moat Analysis
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GE Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral to Bullish, reflecting positive reaction to strong Q1 earnings and outlook.
Institutional Sentiment
Likely Positive, inferred from Q1 earnings beat and guidance, which typically leads to analyst upgrades and increased institutional interest (though no specific data provided).
Insider Activity (Form 4)
No Form 4 insider transactions were identified in the provided search results for the last 90 days.
Options Flow
Normal options activity, as no unusual put/call ratio or specific large-block trades were verified in the provided results.
Earnings Intelligence
Next Earnings
Estimated around July 16, 2026 (Q2 2026)
Surprise Probability
Medium-High, given the strong Q1 performance and management's upbeat guidance for 2026.
Historical Earnings Pattern
GE Aerospace stock likely exhibits a positive reaction to strong earnings beats and reaffirmed/raised guidance, consistent with a high-quality industrial company.
Key Metrics to Watch
Competitive Position
Top Competitor
RTX (Pratt & Whitney)
Market Share Trend
Stable in core engine markets due to duopoly structure, with strong execution indicating robust demand relative to peers in aftermarket services.
Valuation vs Peers
Trading at a premium on P/E multiple compared to typical industrial peers, reflecting its strong market position and recent growth trajectory.
Competitive Advantages
- •Extensive installed base of commercial and military engines
- •Proprietary engine technology and R&D capabilities
- •Long-term, high-margin aftermarket service contracts
Market Intelligence
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What Could Drive GE Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings around July 16, 2026
- •Continued robust commercial aerospace aftermarket demand
Medium-Term (6-18 months)
- •Further gains in market share within specific engine programs
- •Successful introduction of next-generation engine upgrades or variants
Long-Term (18+ months)
- •Global air travel expansion driven by emerging markets
- •Increased defense spending in response to geopolitical trends
Catalysts & Growth Drivers
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What's the Bull Case for GE?
- ✓
Sustained double-digit growth in commercial services revenue
- ✓
Expansion of operating profit margins
- ✓
Net new orders growth, particularly for next-generation platforms
Bull Case Analysis
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Competing with GE
See how General Electric Co compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
General Electric Co GE | $299.7B | 0.5 | 34.7 | $41.1B | 17.9% | 21.8% | |
Caterpillar Inc CAT | $400.8B | 0.1 | 42.5 | $70.8B | 13.3% | 11.8% | Compare → |
Honeywell International Inc HON | $139.6B | 1.9 | 30.9 | — | 11.4% | 3.6% | Compare → |
RTX Corp RTX | — | 0.1 | 5.0 | $88.6B | 7.6% | 0.0% | Compare → |
United Parcel Service Inc UPS | $91.9B | 0.1 | 17.5 | $89.5B | 5.9% | -2.9% | Compare → |
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How General Electric Co Makes Money
GE Aerospace designs, manufactures, and services jet engines for commercial and military aircraft, providing critical propulsion systems and a wide range of aftermarket support. It earns revenue from initial engine sales to aircraft manufacturers (like Boeing and Airbus) and defense departments, but a significant and highly profitable portion comes from long-term service agreements, maintenance, and spare parts for its vast installed fleet over decades. This model capitalizes on high barriers to entry, strict safety regulations, and the essential nature of its products to generate consistent, high-quality earnings.
Read Full Business Model BreakdownFAQ
What is the DVR Score for General Electric Co (GE)?
As of May 15, 2026, General Electric Co has a DVR Score of 0.5 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of General Electric Co?
General Electric Co's market capitalization is approximately $299.7B. The company operates in the Industrials sector within the Aerospace & Defense industry.
What ticker symbol does General Electric Co use?
GE is the ticker symbol for General Electric Co. The company trades on the NYQ.
What is the risk level for GE stock?
Our analysis rates General Electric Co's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of GE?
General Electric Co currently has a price-to-earnings (P/E) ratio of 34.7. This is above the market average, suggesting the stock may be priced for high growth expectations.
Does General Electric Co pay a dividend?
Yes, General Electric Co pays a dividend with a current yield of approximately 0.64%.
Is General Electric Co's revenue growing?
General Electric Co has reported revenue growth of 21.8%. The company is showing strong top-line momentum.
Is GE stock profitable?
General Electric Co has a profit margin of 17.9%. The company is profitable but margins are modest.
How often is the GE DVR analysis updated?
Our AI-powered analysis of General Electric Co is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 15, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for GE (General Electric Co) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.