GE HealthCare Technologies Inc. (GEHC)
Quantitative Summary
DeterministicAt 14.9x earnings — a 77% discount to the sector average of 65.2x — GEHC is in the lower valuation range. Below-average fundamentals indicated by Piotroski score of 3/9. DCF fair value of $20 implies 74% downside based on model assumptions.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedThe fundamental economics present a distinct tension between high profitability efficiency and capital allocation drag. While the DuPont decomposition reveals that a robust 10.1% net margin drives an impressive 19.7% return on equity, this leverage is underpinned by weak asset turnover of only 0.56x. More critically, the ROIC-WACC spread sits at -1.2%, indicating that current returns fail to cover the cost of capital and erode intrinsic value despite strong gross margins near 40%. This operational profile is reinforced by a low Piotroski F-Score of 3/9 and an Altman Z-Score of 1.9, which signals elevated financial distress risk relative to historical norms, even as the negative Beneish M-Score of -2.33 suggests earnings are unlikely to be materially manipulated.
Valuation metrics suggest a significant disconnect between current market pricing and discounted cash flow models. Trading at a P/E ratio of 15.5x appears relatively compressed compared to its implied long-term fundamentals, yet the DCF model indicates a fair value that implies substantial downside relative to prevailing prices. The wide divergence between the company's robust profitability factor (RMW) alpha of 0.240 and its negative Fama-French alpha of -7.66% highlights a failure of stock-specific performance to compensate for broader market style risks over time. With insider flow remaining neutral over the last ninety days, there is no immediate private-sector signal validating or challenging these valuation disparities.
The risk-reward profile appears skewed by conflicting signals regarding growth sustainability and capital efficiency. While revenue grew 4.8% year-over-year with an implied free cash flow growth rate of 10.8%, the negative DCF upside of -69.3% suggests that current expectations may already be pricing in aggressive future expansion or that the cost of capital assumptions are too punitive for this specific asset class. The neutral value factor exposure combined with low insider activity leaves investors exposed to execution risk without clear catalysts from management, requiring a careful assessment of whether the market is appropriately discounting the company's high-margin but leveraged and inefficiently turned business model.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
DCF Sandbox
Interactive5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.
The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 5% YoY revenue.
Sensitivity Matrix
| TG ↓ / WACC → | 8.9% | 10.9% | 12.9% |
|---|---|---|---|
| 2% | $25 | $17 | $12 |
| 3% | $29 | $20 | $14 |
| 4% | $36 | $23 | $15 |
Center = base case. Green = >10% upside, Red = >10% downside vs $61.99.
Pre-computed DCF: WACC=10.9%, terminal growth 3%. Fair value $20 (-73.6%). Not investment advice.
Valuation Context
Currently trading 5% below its 5-year average P/E of 16.9x.
Price Chart with Moving Averages
Technical Setup
AI GeneratedGE HealthCare Technologies Inc. is currently trading at $64.26, a level that warrants examination against its moving average envelope to gauge potential mean-reversion dynamics. Without the specific upper and lower boundary values of the standard deviation bands or the precise location of the Simple Moving Average relative to this price point, it remains impossible to definitively categorize the stock as overbought, oversold, or fairly valued within that statistical context. The current market price sits in isolation from these critical reference lines based on the provided data alone, preventing a clear assessment of whether the asset is statistically extended toward an expected reversion zone or consolidating near its historical average. In technical analysis, prices trading significantly outside their moving average envelopes often signal heightened volatility and potential for a pullback toward the mean, whereas prices nestled within these bands may indicate continued momentum or stability depending on proximity to the boundaries. Since the specific distance between $64.26 and the calculated envelope limits is unknown here, any assertion regarding the immediacy of a reversal would be speculative rather than factual. Market participants must await further data points defining the exact position relative to these statistical thresholds before drawing conclusions about short-term directional bias or the likelihood of a price correction toward equilibrium levels established by recent trading history.
Quant Health Deep Dive
Profitability & Value Creation
✅ Conservative payout — room for dividend increases.
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-04-02 | $0.0350 | 0.0% |
| 2026-01-09 | $0.0350 | 0.0% |
| 2025-10-24 | $0.0350 | 0.0% |
| 2025-07-25 | $0.0350 | 0.0% |
| 2025-04-25 | $0.0350 | 0.0% |
| 2025-01-14 | $0.0350 | +16.7% |
| 2024-10-18 | $0.0300 | 0.0% |
| 2024-07-19 | $0.0300 | 0.0% |
| 2024-04-18 | $0.0300 | 0.0% |
| 2024-01-12 | $0.0300 | 0.0% |
| 2023-10-19 | $0.0300 | 0.0% |
| 2023-07-20 | $0.0300 | 0.0% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like IHI or MOAT, the fund manager is mechanically forced to buy or sell GEHC shares regardless of GE HealthCare Technologies Inc.'s individual fundamentals. We estimate $5.2B of passive capital is structurally linked to GEHC through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in GE HealthCare Technologies Inc. to visualize passive redemption contagion across ETFs and collateral stocks.
If GE HealthCare Technologies Inc. (GEHC) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Intuitive Surgical Inc (ISRG) as the most exposed collateral stock, sharing 1 ETFs with GEHC. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 30 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
GEHC Ownership Dynamics
Passive funds hold 1 in every 6 GEHC shares, reducing daily market volatility.
GE HealthCare Technologies Inc. (GEHC) exerts notable gravity on the passive index market, currently representing 4.0% of the IHI (IHI) and 2.5% of the MOAT (MOAT). Across 30 tracked ETFs, approximately 79M shares (17.3% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.
ETFs with Highest GEHC Exposure
Float lock-up computed from 30 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
GEHC Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for GE HealthCare Technologies Inc. over the past year sits near $73.47 (13% of 252-day volume). The current price of $61.99 sits 15.6% below the POC — suggesting potential mean-reversion upside if institutional demand reasserts at this level. The highly concentrated volume profile (13% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
GEHC Capital Efficiency
How efficiently does GE HealthCare Technologies Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
GE HealthCare Technologies Inc. converts 40% of its EBITDA into free cash flow, a moderate conversion rate — significant EBITDA is consumed by capital expenditures, working capital changes, or interest payments. The 60% reinvestment rate signals aggressive capacity expansion. However, the ROIC-WACC spread is negative (-1.7%), suggesting reinvested capital is destroying shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-14 | 1,374 | $61.89 | $85,036.86 |
| 2026-05-11 | 1,607 | $63.47 | $101,996.29 |
| 2026-05-04 | 46 | $61.03 | $2,807.38 |
| 2026-04-29 | 7 | $68.50 | $479.5 |
| 2026-04-27 | 7 | $68.83 | $481.81 |
| 2026-04-23 | 7 | $71.38 | $499.66 |
| 2026-04-22 | 383 | $72.26 | $27,675.58 |
| 2026-04-21 | 7 | $74.15 | $519.05 |
| 2026-04-20 | 500 | $74.66 | $37,330 |
| 2026-04-17 | 7 | $73.20 | $512.4 |
| 2026-04-15 | 6 | $74.67 | $448.02 |
| 2026-04-14 | 2,736 | $73.83 | $201,998.88 |
| 2026-04-13 | 60,604 | $73.18 | $4.4M |
| 2026-04-07 | 18 | $70.40 | $1,267.2 |
| 2026-04-06 | 4 | $70.35 | $281.4 |
| 2026-04-02 | 14,705 | $71.98 | $1.1M |
| 2026-03-30 | 366 | $69.23 | $25,338.18 |
| 2026-03-25 | 46 | $70.96 | $3,264.16 |
| 2026-03-24 | 21,655 | $71.65 | $1.6M |
| 2026-03-23 | 9 | $69.65 | $626.85 |
| 2026-03-13 | 13 | $70.33 | $914.29 |
| 2026-03-09 | 27,593 | $74.27 | $2.0M |
| 2026-03-04 | 12 | $78.13 | $937.56 |
| 2026-03-03 | 636 | $80.16 | $50,981.76 |
| 2026-03-02 | 19 | $84.27 | $1,601.13 |
| 2026-02-26 | 218,793 | $84.03 | $18.4M |
| 2026-02-24 | 16,340 | $83.86 | $1.4M |
| 2026-02-23 | 1,000 | $84.23 | $84,230 |
| 2026-02-12 | 10 | $79.20 | $792 |
| 2026-02-10 | 124 | $79.08 | $9,805.92 |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| MTD | 0.657 | 0.606 | Moderate |
| SWK | 0.626 | 0.611 | Moderate |
| PPG | 0.617 | 0.594 | Moderate |
| A | 0.603 | 0.564 | Moderate |
| ODFL | 0.582 | 0.538 | Moderate |
| NDSN | 0.574 | 0.566 | Moderate |
| MAS | 0.569 | 0.553 | Moderate |
| DOV | 0.568 | 0.509 | Moderate |
| DD | 0.564 | 0.472 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare GEHC to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.