GE HealthCare (GEHC)
Healthcare · NASDAQ · US
Fundamentals
Valuation and ratings
GE HealthCare trades at $65.70, which is 46% above the $35.45 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 56 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 15.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About GE HealthCare
GE HealthCare Technologies Inc. engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, and internationally. The company operates through four segments: Imaging, Advanced Visualization Solutions (AVS), Patient Care Solutions (PCS), and Pharmaceutical Diagnostics (PDx). The Imaging segment offers molecular imaging, computed tomography (CT) scanning, magnetic resonance (MR) imaging, X-ray systems, and women's health products. The AVS segment provides ultrasound, image guided therapies, and interventional solutions for screening, diagnosis, treatment, and monitoring of certain diseases in clinical areas, such as women's health, cardiovascular, and comprehensive care ultrasound as well as surgical visualization and guidance products. The PCS segment provides medical devices, consumables, services, and digital solutions. Its portfolio includes patient monitoring, diagnostic cardiology, consumables and services, digital solutions, maternal infant care, and anesthesia products. The PDx segment supplies diagnostic agents, including CT, angiography and X-ray, MR, single-photon emission computed tomography, and positron emission tomography to the radiology and nuclear medicine industries. The segment also provides contrast media pharmaceuticals that are administered to a patient prior to certain diagnostic scans to increase the visibility of tissues or structures during imaging exams; and molecular imaging agents or radiopharmaceuticals, which are molecular tracers labeled with radioisotopes. The company has a strategic collaboration with DeepHealth. GE HealthCare Technologies Inc. was formerly known as GE Healthcare Holding LLC and changed its name to GE HealthCare Technologies Inc. in December 2022. The company was incorporated in 2022 and is headquartered in Chicago, Illinois.
GEHC passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
23 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Dodge & Cox, DODGE & COX$2.23B · 1.2% of book
- Bill Nygren, HARRIS ASSOCIATES L P$2.22B · 1.5% of book
- Capital Research Global, Capital Research Global Investors$1.50B · 0.2% of book
- Ken Griffin, CITADEL ADVISORS LLC$92.05M · 0.0% of book
- Harry Burn, SOUND SHORE MANAGEMENT INC /CT/$84.90M · 2.9% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is GE HealthCare (GEHC) undervalued?
Against our discounted cash flow estimate of $35.45, GEHC at $65.70 is 46% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own GEHC?
23 of the institutions we track reported a position in GEHC in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is GEHC's P/E ratio?
GEHC trades at 15.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.