Every day, GE HealthCare Technologies Inc. transforms the way healthcare is delivered, making significant strides in patient diagnosis and treatment. As a leading force in medical technology, their innovative products, from advanced imaging systems to patient monitoring solutions, are at the forefront of improving patient outcomes globally. With a robust reputation for quality and innovation, I find myself questioning whether GEHC’s current market valuation reflects its growth potential and solid fundamentals.
Table of contents
Company Description
GE HealthCare Technologies Inc. (ticker: GEHC), founded in 2022 and headquartered in Chicago, IL, is a prominent player in the healthcare sector, specializing in medical technology and services. The company operates in four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics, offering a comprehensive range of products including CT and MRI systems, ultrasound solutions, and diagnostic agents. With a market capitalization of approximately $34.9B, GE HealthCare is a leader in healthcare information services, delivering innovative solutions across the U.S., Canada, Europe, and Asia. As a forward-thinking organization, it plays a vital role in shaping the future of patient care through advanced technologies and integrated services.
Fundamental Analysis
In this section, I will analyze GE HealthCare Technologies Inc.’s income statement, financial ratios, and dividend payout policy to evaluate its financial health.
Income Statement
Below is the income statement for GE HealthCare Technologies Inc. (GEHC) over the past five fiscal years. This will provide a clear view of the company’s financial performance.
| Item | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 17.16B | 17.59B | 18.34B | 19.55B | 19.67B |
| Cost of Revenue | 10.40B | 10.41B | 11.16B | 11.63B | 11.47B |
| Operating Expenses | 4.05B | 4.38B | 4.66B | 5.49B | 5.58B |
| Gross Profit | 6.67B | 7.17B | 7.18B | 7.92B | 8.21B |
| EBITDA | 3.41B | 3.54B | 3.17B | 3.51B | 3.67B |
| EBIT | 2.78B | 2.92B | 2.53B | 2.90B | 3.09B |
| Interest Expense | 0.07B | 0.04B | 0.09B | 0.54B | 0.51B |
| Net Income | 2.00B | 2.25B | 1.92B | 1.57B | 1.99B |
| EPS | 4.41 | 4.90 | 4.22 | 3.04 | 4.37 |
| Filing Date | 2021-12-31 | 2022-12-31 | 2023-12-31 | 2024-02-06 | 2025-02-13 |
Interpretation of Income Statement
Over the last five years, GEHC has shown a steady increase in revenue, reaching 19.67B in 2024 from 17.16B in 2020. However, net income has fluctuated, with a peak in 2021 at 2.25B, before decreasing to 1.57B in 2023, and rebounding to 1.99B in 2024. The gross profit margin has remained relatively stable, indicating effective cost management despite rising operating expenses. The most recent year shows a solid recovery in net income and EPS growth, suggesting improved operational efficiency and effective strategic decisions, although ongoing vigilance is necessary to sustain this upward trajectory.
Financial Ratios
The table below summarizes the key financial ratios for GE HealthCare Technologies Inc. over the most recent fiscal years.
| Ratios | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Net Margin | 10.13% | 8.02% | 10.45% | 12.78% | 80.67% |
| ROE | 23.59% | 21.98% | 20.48% | 13.49% | 94.02% |
| ROIC | 8.29% | 6.79% | 9.56% | 11.25% | 11.58% |
| P/E | 17.89 | 22.44 | 13.83 | 12.14 | 1.97 |
| P/B | 4.22 | 4.93 | 2.83 | 1.64 | 1.85 |
| Current Ratio | 0.996 | 1.003 | 1.087 | 0.968 | 0.835 |
| Quick Ratio | 0.793 | 0.785 | 0.788 | 0.680 | 0.591 |
| D/E | 1.11 | 1.38 | 0.92 | 0.03 | 0.03 |
| Debt-to-Assets | 28.34% | 30.39% | 31.36% | 1.66% | 1.93% |
| Interest Coverage | 5.20 | 4.49 | 29.33 | 69.88 | 41.21 |
| Asset Turnover | 0.59 | 0.60 | 0.67 | 0.67 | 0.71 |
| Fixed Asset Turnover | 7.71 | 7.82 | 7.93 | 7.87 | 7.79 |
| Dividend Yield | 0.15% | 0.12% | 0.00% | 0.00% | 0.00% |
Interpretation of Financial Ratios
Analyzing GE HealthCare Technologies Inc. (GEHC) for the fiscal year ending December 31, 2024, reveals mixed financial health. The current ratio stands at 0.996, indicating potential liquidity concerns, as it’s below 1. The solvency ratio of 0.105 suggests a reliance on debt, with a debt-to-equity ratio of 1.110, indicating a higher leverage position. Profitability ratios show a net profit margin of 10.13%, which is decent, but the return on equity at 23.59% reflects strong profitability on shareholders’ capital. Efficiency metrics, like the asset turnover ratio of 0.595, suggest room for improvement in utilizing assets to generate revenue. Overall, while profitability is reasonable, the company’s liquidity and solvency raise concerns that investors should monitor closely.
Evolution of Financial Ratios
Over the past five years, GEHC’s financial ratios have shown a downward trend in liquidity, with the current ratio decreasing from 1.087 in 2022 to 0.996 in 2024. Profitability has improved, as evidenced by an increase in the net profit margin from 8.02% in 2023 to 10.13% in 2024, indicating better operational efficiency and cost management.
Distribution Policy
GE HealthCare Technologies Inc. (GEHC) maintains a modest dividend policy, with a payout ratio of approximately 2.76%, translating to a dividend per share of $0.12. The annual dividend yield stands at a mere 0.15%, indicating limited returns from dividends. Additionally, the company engages in share buyback programs, which may enhance shareholder value by reducing share dilution. However, the sustainability of these distributions warrants caution, particularly amid potential economic downturns. Overall, the current distribution approach could support long-term value creation, provided management remains disciplined in capital allocation.
Sector Analysis
GE HealthCare Technologies Inc. operates in the Medical – Healthcare Information Services industry, focusing on advanced diagnostic and monitoring solutions, competing with major players while leveraging its innovative technology and diverse offerings.
Strategic Positioning
GE HealthCare Technologies Inc. (ticker: GEHC) holds a substantial market share in the healthcare information services industry, focusing on advanced imaging and patient monitoring solutions. With a market cap of approximately $34.9B, the company faces competitive pressure from both established players and emerging tech disruptors. The integration of AI and machine learning in diagnostics is reshaping the landscape, prompting GEHC to innovate continuously. As they benchmark against competitors, maintaining a robust portfolio across their four segments—Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics—will be crucial for sustaining their market position and addressing technological disruptions effectively.
Revenue by Segment
The chart illustrates the revenue distribution across GE HealthCare Technologies Inc. segments for the fiscal years 2023 and 2024, highlighting the shifts and trends over this period.
In 2024, the Imaging Segment generated $8.86B, showing a decline from $10.58B in 2023, indicating a significant drop in this critical area. The PCS Segment remained relatively stable, with $3.13B in 2024 compared to $3.14B in the previous year. Meanwhile, the PDx Segment grew to $2.51B from $2.31B, reflecting ongoing investment in this area. Notably, the absence of Ultrasound Segment data in 2024 may point to strategic adjustments or divestments. Overall, the decline in Imaging suggests potential margin pressures and necessitates close monitoring for future growth opportunities.
Key Products
Below is a summary of the key products offered by GE HealthCare Technologies Inc., highlighting their significance in the healthcare sector.
| Product | Description |
|---|---|
| Molecular Imaging | Advanced imaging technologies used for precise diagnosis and treatment planning in various conditions. |
| Computed Tomography (CT) | High-resolution imaging systems that provide detailed cross-sectional images of the body, critical for diagnosis. |
| Magnetic Resonance Imaging (MRI) | Non-invasive imaging technique that uses magnetic fields to create detailed images of organs and tissues. |
| Ultrasound Solutions | Devices used for screening and monitoring, offering real-time imaging for various medical applications. |
| Patient Monitoring Systems | Comprehensive solutions for continuous monitoring of patients’ vital signs and overall health in clinical settings. |
| Anesthesia Delivery Systems | Equipment designed to safely administer anesthesia during surgical procedures, ensuring patient comfort and safety. |
| Diagnostic Radiopharmaceuticals | Specialized agents used in imaging procedures to enhance visibility of tissues and structures, aiding diagnosis. |
| Contrast Media | Pharmaceuticals administered prior to imaging scans to improve the clarity of images obtained during procedures. |
These products play a crucial role in enhancing diagnostic accuracy and treatment efficacy, aligning with GE HealthCare’s commitment to improving patient outcomes.
Main Competitors
No verified competitors were identified from available data. GE HealthCare Technologies Inc. operates within the healthcare information services sector and is estimated to hold a significant market share due to its diverse offerings in medical imaging, ultrasound, patient care solutions, and pharmaceutical diagnostics. The company appears to be well-positioned in the U.S. and international markets, leveraging its innovative technologies to enhance patient diagnosis and treatment capabilities.
Competitive Advantages
GE HealthCare Technologies Inc. (GEHC) holds a robust market position due to its diverse portfolio across imaging, ultrasound, patient care solutions, and pharmaceutical diagnostics. With a market cap of approximately 34.9B, the company benefits from its strong brand recognition and extensive global reach. Looking ahead, GEHC is poised for growth through the development of innovative digital solutions and expansion into emerging markets. New product launches in molecular imaging and AI-driven healthcare services present significant opportunities for enhanced patient outcomes and operational efficiencies, positioning the company favorably in the evolving healthcare landscape.
SWOT Analysis
This SWOT analysis evaluates GE HealthCare Technologies Inc. (GEHC) to identify its strengths, weaknesses, opportunities, and threats, assisting investors in strategic decision-making.
Strengths
- Strong market position
- Diverse product portfolio
- Robust R&D capabilities
Weaknesses
- High competition
- Regulatory challenges
- Dependence on healthcare spending
Opportunities
- Growth in telehealth
- Expansion in emerging markets
- Innovations in medical technology
Threats
- Economic downturns
- Rapid technological changes
- Supply chain disruptions
Overall, GE HealthCare demonstrates a solid foundation with significant strengths and opportunities that can drive future growth. However, the company must navigate its weaknesses and external threats effectively to maintain its competitive edge and ensure long-term stability in the healthcare sector.
Stock Analysis
Over the past year, GE HealthCare Technologies Inc. (GEHC) has demonstrated notable price movements, with key dynamics influencing its trading patterns. The stock has recently faced challenges, as reflected in its performance.
Trend Analysis
Analyzing the stock’s performance over the past year, GEHC has experienced a percentage change of -1.13%, indicating a bearish trend. This trend is characterized by acceleration, with a standard deviation of 7.26 suggesting some volatility in price movements. During this timeframe, the stock reached a high of 93.87 and a low of 60.51, highlighting a significant range of price activity.
Volume Analysis
In terms of trading volumes over the last three months, GEHC’s overall volume stands at approximately 1.92B, with buyer volume at 1.01B and seller volume at 897M. The activity appears slightly buyer-driven, as buyers accounted for 52.63% of the total volume, with the volume trend showing an increasing pattern. This suggests a cautious optimism among investors, reflecting a growing interest in the stock despite its current bearish trend.
Analyst Opinions
Recent analyst recommendations for GE HealthCare Technologies Inc. (GEHC) reveal a consensus rating of “Buy.” Analysts have highlighted the company’s strong return on equity and assets, scoring 5 in both categories. Notably, an A- rating indicates confidence in GEHC’s discounted cash flow potential. Analysts emphasize that while the debt-to-equity ratio is moderate, it does not overshadow the company’s robust growth prospects. I believe this positive outlook makes GEHC a compelling option for investors looking to enhance their portfolios.
Stock Grades
The latest ratings for GE HealthCare Technologies Inc. (GEHC) indicate a generally stable outlook, with several firms maintaining their grades.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| BTIG | Maintain | Buy | 2025-11-21 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-30 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-30 |
| Wells Fargo | Maintain | Overweight | 2025-10-30 |
| BTIG | Maintain | Buy | 2025-10-13 |
| Citigroup | Downgrade | Neutral | 2025-10-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-07-31 |
| Citigroup | Maintain | Buy | 2025-07-31 |
| Citigroup | Maintain | Buy | 2025-07-09 |
| Morgan Stanley | Maintain | Equal Weight | 2025-05-06 |
Overall, the trend shows that major analysts predominantly maintain positive ratings, though there is a notable downgrade from Citigroup to Neutral recently. This suggests a cautious but generally optimistic sentiment towards GEHC in the current market.
Target Prices
The consensus among analysts for GE HealthCare Technologies Inc. (GEHC) indicates a positive outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 90 | 74 | 84.8 |
Overall, analysts expect GEHC’s stock to perform well, with a target consensus of 84.8, reflecting a favorable assessment of the company’s prospects.
Consumer Opinions
Consumer sentiment surrounding GE HealthCare Technologies Inc. (GEHC) reveals a mix of praise and criticism, reflecting the diverse experiences of users with their products and services.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative technology that improves patient care.” | “Customer service response times are too slow.” |
| “Reliable equipment with excellent performance.” | “High costs make it difficult for smaller facilities to adopt.” |
| “User-friendly interfaces that enhance usability.” | “Occasional software glitches impact functionality.” |
Overall, consumer feedback indicates strong appreciation for GEHC’s innovative technology and equipment reliability, while concerns regarding customer service and pricing persist as notable weaknesses.
Risk Analysis
In assessing the investment potential of GE HealthCare Technologies Inc. (GEHC), it’s essential to consider various risks that could impact performance. Below is a table summarizing the key risks associated with this company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in healthcare demand and spending | High | High |
| Regulatory Risk | Changes in healthcare regulations and compliance | Medium | High |
| Technological Risk | Rapid advancements in medical technology | High | Medium |
| Supply Chain Risk | Disruptions in supply chain affecting production | Medium | High |
| Competitive Risk | Increased competition from other healthcare firms | High | Medium |
The most likely risks for GEHC stem from market volatility and heightened competition, both of which can significantly influence financial performance. As healthcare spending evolves, staying ahead of the curve will be crucial for maintaining market position.
Should You Buy GE HealthCare Technologies Inc.?
GE HealthCare Technologies Inc. has demonstrated a positive net margin of 10.13% and a return on invested capital (ROIC) of 8.29%, indicating effective profitability. The company’s total debt amounts to 9.38B, contributing to a debt-to-equity ratio of 0.27, which suggests a moderate level of debt relative to its equity. Over the years, the fundamentals show a consistent growth in revenue, culminating in a revenue of 20.16B for the year 2025, and the company has received a rating of A-.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals The company faces a concerning debt level of 9.38B, which is significant relative to its equity. Additionally, the recent trend analysis indicates a bearish stock trend with a price change percentage of -1.13, highlighting a negative sentiment in the market. Furthermore, the recent seller volume exceeds the recent buyer volume, suggesting a potential lack of demand for the stock.
Conclusion Given the unfavorable signals, it might be prudent to wait for a more favorable market condition or sentiment before considering any potential investment in GE HealthCare Technologies Inc.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- GE HealthCare to Acquire Intelerad for $2.3 Billion – The Wall Street Journal (Nov 20, 2025)
- GE HealthCare (Nasdaq: GEHC) to buy Intelerad in $2.3B cloud imaging deal – Stock Titan (Nov 20, 2025)
- GE HealthCare: On The Acquisition Tour After A Tariff-Dominated Year – Seeking Alpha (Nov 23, 2025)
- GE HealthCare Technologies (GEHC): Exploring Valuation After Recent Share Price Uptick – simplywall.st (Nov 23, 2025)
- GE HealthCare Stock Prediction: Where Analysts See the Stock Going by 2027 – TIKR.com (Nov 22, 2025)
For more information about GE HealthCare Technologies Inc., please visit the official website: gehealthcare.com
