Stock Analysis & Valuation General Electric Company (GE.SW)

• Previous Close: CHF152.00
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	38.90	-74
Graham Formula	171.20	13

Strategic Investment Analysis

Company Overview

General Electric Company (GE.SW) is a global high-tech industrial leader operating across Power, Renewable Energy, Aviation, and Healthcare segments. Headquartered in Boston, Massachusetts, and listed on the Swiss Exchange (SIX), GE serves diverse markets in Europe, China, Asia, the Americas, and beyond. The Power segment delivers gas and steam turbines, grid solutions, and digital services for energy generation. The Renewable Energy segment focuses on wind, hydro, and hybrid energy solutions, while Aviation provides cutting-edge aircraft engines and aftermarket services. Healthcare offers precision health technologies, including medical imaging and diagnostics. With a legacy dating back to 1892, GE combines industrial expertise with digital innovation, positioning itself as a key player in energy transition, aerospace, and healthcare modernization. The company’s CHF 164.8B market cap reflects its diversified industrial footprint and technological leadership.

Investment Summary

General Electric presents a mixed investment case. Strengths include its diversified industrial portfolio, leadership in aviation (engine manufacturing), and growing renewable energy exposure. The company’s CHF 67.95B revenue and CHF 9.48B net income (EPS: CHF 8.63) demonstrate scale, while positive operating cash flow (CHF 5.18B) supports financial stability. However, risks include high leverage (CHF 22.94B debt) and exposure to cyclical industries like aerospace and power infrastructure. The 1.179 beta indicates market sensitivity. Dividend investors may find the CHF 0.96/share yield modest. Long-term prospects hinge on execution in energy transition and healthcare digitization, but competition and macroeconomic headwinds warrant caution.

Competitive Analysis

GE’s competitive advantage lies in its entrenched market positions: it is a top-three player in aviation engines (competing with Rolls-Royce and Pratt & Whitney), a leader in gas turbines, and a growing force in renewables (especially offshore wind). Its Healthcare segment benefits from long-term contracts with hospitals. However, GE faces intense competition. In Power, Siemens Energy challenges its gas turbine dominance with more efficient designs. In Renewables, Vestas and Siemens Gamesa lead in wind turbine innovation. Aviation rivals benefit from defense contracts (e.g., Safran’s military ties). GE’s scale and R&D budget (implied by its segment diversity) provide cost advantages, but its conglomerate structure may lack the agility of pure-play competitors. The company’s shift toward digital solutions (e.g., grid software) differentiates it, but execution risks remain as it spins off Healthcare and Renewable Energy divisions.

Major Competitors

• Siemens Energy AG (SIEGn.DE): Siemens Energy is GE’s closest peer in gas turbines and grid technology, with stronger European market penetration. Its renewable segment (spun-off Siemens Gamesa) struggles with profitability but leads in offshore wind innovation. Weakness: exposure to wind sector volatility.
• Rolls-Royce Holdings plc (RR.L): A key rival in aircraft engines (especially wide-body jets), Rolls-Royce benefits from military contracts but lags in narrow-body engines. Strengths: aftermarket services. Weakness: slower recovery in long-haul aviation post-pandemic.
• Vestas Wind Systems A/S (VWS.DC): Vestas dominates onshore wind turbines, outpacing GE in Europe and emerging markets. Strengths: pure-play renewables focus. Weakness: supply chain vulnerabilities and pricing pressure in wind auctions.
• Safran SA (SAF.PA): Safran competes in aviation (LEAP engine JV with GE) and has a stronger defense portfolio. Strengths: military aftermarket stability. Weakness: limited power/renewables diversification.
• Koninklijke Philips NV (PHG.AS): Philips rivals GE Healthcare in imaging and diagnostics but exited some GE-aligned markets (e.g., lighting). Strengths: stronger consumer health presence. Weakness: recent recalls in respiratory devices.