Ge Healthcare Stock Price: The Definitive Guide for Smart Investors
GE Healthcare (GEHC) spun off from General Electric in January 2023 and has since established itself as a standalone medical technology company generating over $19 billion in annual revenue. The ge healthcare stock price reflects a business that serves hospitals, clinics, and research institutions across 160 countries with imaging equipment, ultrasound systems, and pharmaceutical diagnostics. For investors trying to determine whether GEHC deserves a spot in their portfolio, price alone tells only half the story. The numbers underneath the ticker tell the rest.
This guide breaks down every fundamental dimension of GEHC: its valuation ratios, profitability metrics, balance sheet strength, and what financial health scoring models reveal about where the stock might be headed.
Key Takeaways
- GE Healthcare trades at a forward P/E near 20, placing it between premium medtech names and traditional healthcare value plays
- The company's Altman Z-Score sits above 3.0, signaling low bankruptcy risk since the spinoff
- GEHC's ROIC of approximately 9.5% lags behind pure-play peers like Abbott (14.2%) but is improving quarter over quarter
- Free cash flow conversion has strengthened, with FCF margin reaching 8.1% in the trailing twelve months
- The Beneish M-Score does not flag earnings manipulation, an important check for any recently spun-off entity
- ValueMarkers VMCI Score ranks GEHC in the 58th percentile, with Quality as its strongest pillar
Understanding GE Healthcare as a Standalone Company
Before examining the ge healthcare stock price in detail, it helps to understand what GEHC actually does as an independent entity. The company operates across four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics.
Imaging accounts for roughly 45% of total revenue and includes MRI, CT, and X-ray systems. This is also the highest-margin segment.
Ultrasound contributes around 15% and has been growing in the mid-single digits as point-of-care applications expand globally.
Patient Care Solutions covers monitoring, anesthesia, and respiratory care, representing about 25% of revenue.
Pharmaceutical Diagnostics, the smallest segment at 15%, manufactures contrast agents used during imaging procedures. This segment carries the highest gross margins in the entire business.
The combined business generated $19.6 billion in revenue for the trailing twelve months, with an operating margin of approximately 15.2%.
GE Healthcare Valuation Metrics: What the Numbers Say
Let's examine how the ge healthcare stock price measures up on traditional valuation metrics compared to its medtech peers.
| Metric | GEHC | Abbott (ABT) | Siemens Healthineers | Philips (PHG) | Medtronic (MDT) |
|---|---|---|---|---|---|
| P/E (TTM) | 20.1 | 25.8 | 28.3 | 18.5 | 22.4 |
| P/S | 2.6 | 4.8 | 3.1 | 0.9 | 3.5 |
| P/B | 3.8 | 4.2 | 3.6 | 1.1 | 2.1 |
| EV/EBITDA | 14.2 | 18.7 | 16.4 | 10.8 | 14.9 |
| Dividend Yield | 0.2% | 1.8% | 1.5% | 0% | 3.2% |
GEHC's P/E of 20.1 positions it as a relative bargain compared to Abbott's 25.8 or Siemens Healthineers at 28.3. But the lower multiple also reflects the market's caution about a company that has operated independently for only about three years.
The P/S ratio of 2.6 is moderate. Companies like Philips trade at just 0.9x sales, but Philips has been dealing with a massive product recall. GEHC's P/S sits comfortably in the middle of the pack.
The EV/EBITDA of 14.2 suggests GEHC is not a deep value pick, but it is not stretched either. For context, the medtech industry median sits around 16x.
Profitability Analysis: Margins and Returns
A stock price only makes sense in the context of what the company earns and how efficiently it deploys capital.
GEHC's gross margin stands at approximately 41.3%. That is competitive but trails Abbott (53.1%) and Siemens Healthineers (48.7%). The gap reflects GEHC's heavier exposure to hardware, which typically carries lower margins than consumables or software.
Operating margin has improved from 13.8% at the time of the spinoff to 15.2% today. Management targets reaching 17% by 2027 through a combination of procurement savings, manufacturing consolidation, and increased software revenue.
Net margin sits at 10.4%, which is respectable for a capital-intensive medtech business.
Return on Invested Capital (ROIC) currently registers around 9.5%. For comparison, Apple generates 45.1% ROIC and Microsoft 35.2%, but those are asset-light tech businesses. Within medtech, an ROIC approaching 10% is acceptable, and GEHC's trajectory is moving in the right direction. You can track ROIC trends across healthcare companies using the ValueMarkers screener.
Balance Sheet Strength and Financial Health Scores
The balance sheet tells investors whether a company can survive downturns and fund growth without excessive risk.
GEHC carries approximately $10.2 billion in total debt against $2.8 billion in cash and equivalents. That yields a net debt position of about $7.4 billion, which represents roughly 2.1x net debt to EBITDA. This is manageable but higher than some peers.
The current ratio stands at 1.1, suggesting adequate short-term liquidity.
The interest coverage ratio is approximately 7.8x, meaning GEHC earns nearly eight times what it needs to service its debt payments. This provides a comfortable buffer.
Altman Z-Score Assessment
The Altman Z-Score combines five financial ratios to predict the likelihood of bankruptcy within two years. GEHC's score sits above 3.0, which falls in the "safe zone." Any score above 2.99 indicates low probability of financial distress.
For comparison, Berkshire Hathaway's Altman Z-Score is 8.2, but that reflects an entirely different business model with massive insurance float. Among medtech peers, GEHC's Z-Score is roughly in line with industry norms.
Beneish M-Score Check
The Beneish M-Score flags potential earnings manipulation. For a company that recently spun off and established new financial reporting processes, this metric is particularly relevant.
GEHC's M-Score of approximately -2.6 sits below the -1.78 threshold. Scores below this cutoff indicate the company is unlikely to be manipulating earnings. This is reassuring given the complexity of carving out financial statements from a parent company.
Piotroski F-Score
GEHC scores a 6 out of 9 on the Piotroski F-Score. Points are earned for positive net income, positive operating cash flow, improving ROA, cash flow exceeding net income, declining long-term debt ratio, and improving current ratio. Points are lost on declining gross margin, declining asset turnover, and share dilution from equity-based compensation.
A score of 6 indicates moderate financial strength. It does not scream "buy" the way an 8 or 9 would (Microsoft scores an 8, Visa also scores 8), but it does not raise red flags either.
Free Cash Flow: The Metric That Matters Most
Warren Buffett has long emphasized that intrinsic value is the sum of future free cash flows discounted back to present value. So how does GEHC perform on this dimension?
Trailing twelve-month free cash flow stands at approximately $1.6 billion, yielding an FCF margin of 8.1%. This has improved from roughly 5.5% at the time of the spinoff.
The improvement comes from better working capital management and reduced capital expenditure as a percentage of revenue. GEHC's capex runs at about 4.2% of revenue, which is lower than the 5.5% industry average for medtech companies with significant manufacturing operations.
FCF yield (FCF divided by market capitalization) comes in at approximately 3.8%. This is not cheap, but it is not expensive either. A company growing FCF at 10-15% annually with a 3.8% starting yield can deliver attractive total returns over five to ten years.
The ValueMarkers DCF calculator can help you model different growth scenarios for GEHC's free cash flow and determine a fair value estimate for the stock.
Revenue Growth Trajectory
GEHC has delivered mid-single-digit organic revenue growth since the spinoff, with the following trend:
| Period | Revenue ($B) | Organic Growth | Orders Growth |
|---|---|---|---|
| Q1 2024 | 4.6 | 1.2% | 3.8% |
| Q2 2024 | 4.8 | 3.5% | 5.1% |
| Q3 2024 | 4.9 | 4.2% | 4.7% |
| Q4 2024 | 5.3 | 5.8% | 6.2% |
| Q1 2025 | 4.8 | 3.1% | 4.9% |
The Q4 seasonality bump is typical in medtech, as hospitals deploy remaining annual budgets before year-end. The more important signal is the improving orders growth, which suggests revenue acceleration could continue.
Geographic diversification helps stabilize growth. Roughly 48% of revenue comes from the Americas, 30% from Europe/Middle East/Africa, and 22% from Asia-Pacific. China has been a headwind due to the government anti-corruption campaign in healthcare procurement, but orders are beginning to normalize.
Competitive Position and Moat Analysis
Understanding the ge healthcare stock price requires assessing the durability of the company's competitive advantages.
GEHC benefits from several structural advantages. The installed base of imaging equipment creates recurring revenue through service contracts and consumables. Approximately 55% of Imaging segment revenue comes from aftermarket services, not new equipment sales.
Switching costs are significant in medical imaging. Hospitals that purchase GEHC MRI systems train radiologists on GE-specific software, integrate with GE's data management platforms, and establish service agreements. Replacing an entire imaging fleet involves millions in capital expenditure and months of downtime.
The pharmaceutical diagnostics business benefits from FDA-approved contrast agents that require lengthy regulatory processes to replicate. Generic competition exists but is limited.
However, GEHC faces real competitive threats. Siemens Healthineers competes head-to-head in imaging and has a leading position in laboratory diagnostics, which GEHC lacks. Chinese competitors like Mindray are gaining share in emerging markets with lower-cost equipment.
VMCI Score Breakdown for GEHC
The ValueMarkers Composite Indicator (VMCI) Score evaluates stocks across five pillars: Value (35% weight), Quality (30%), Integrity (15%), Growth (12%), and Risk (8%).
GEHC ranks in the 58th percentile overall. Here is how it scores on each pillar:
| Pillar | Weight | GEHC Score | Peer Median |
|---|---|---|---|
| Value | 35% | 61st | 50th |
| Quality | 30% | 72nd | 55th |
| Integrity | 15% | 55th | 50th |
| Growth | 12% | 48th | 50th |
| Risk | 8% | 45th | 50th |
Quality is the standout. GEHC's improving margins, solid cash flow conversion, and healthy interest coverage push it into the top third on quality metrics.
Value is slightly above average, reflecting the moderate valuation multiples we discussed earlier.
Growth scores below median because GEHC's mid-single-digit organic growth does not stand out in a sector that includes faster-growing names like Intuitive Surgical or DexCom.
Risk scores below average due to the elevated debt level from the spinoff. As GEHC pays down debt, this score should improve.
How to Use a Stock Screener to Evaluate GEHC
Rather than analyzing GEHC in isolation, smart investors compare it against the entire healthcare universe. A stock screener with 120+ indicators across 73 global exchanges lets you filter for companies that match or exceed GEHC's profile.
Start by screening for healthcare companies with:
- P/E below 25
- ROIC above 8%
- Altman Z-Score above 2.99
- FCF margin above 5%
- Piotroski F-Score of 6 or higher
This filter set will return a manageable list of medtech companies that share GEHC's combination of moderate valuation, adequate profitability, and financial stability. You can then rank them by VMCI Score to identify which ones offer the best overall value proposition.
The ValueMarkers screener makes this process straightforward. Set your filters, sort by the metric that matters most to you, and compare companies side by side.
Risks to the GE Healthcare Investment Thesis
No analysis is complete without acknowledging what could go wrong.
Debt reduction depends on continued free cash flow growth. If margins stall or revenue growth slows, the deleveraging timeline extends, and the stock could face multiple compression.
China exposure creates uncertainty. The anti-corruption campaign in healthcare has delayed procurement decisions, and while the backlog is building, there is no guarantee it converts into orders at historical rates.
Currency headwinds affect a company that generates over half its revenue outside the United States. A strengthening dollar reduces the value of international earnings when translated back to USD.
Technology change is a longer-term risk. AI-powered imaging analysis could shift value from hardware manufacturers to software providers. GEHC is investing in AI through its Edison platform, but the competitive dynamics are still evolving.
Regulatory risk exists in pharmaceutical diagnostics, where new contrast agent approvals could face longer review timelines under changing FDA priorities.
Building a Position: Dollar-Cost Averaging Approach
For investors who have concluded that GEHC represents reasonable value at current prices, a dollar-cost averaging strategy reduces timing risk.
Rather than investing a lump sum, consider splitting your intended allocation into four to six equal purchases spread over three to six months. This smooths out entry prices and reduces the impact of short-term volatility.
Set price alerts at key technical levels. If the ge healthcare stock price drops 10% from your first purchase, that may represent an opportunity to accelerate your buying schedule. If it rises 15% quickly, slowing down or pausing additional purchases can prevent overpaying.
Track quarterly earnings releases and compare actual results against the metrics outlined in this guide. Improving ROIC, expanding margins, and accelerating orders growth would support a higher valuation multiple over time.
Further reading: Investopedia · CFA Institute
Related ValueMarkers Resources
- Beneish M-Score — Beneish M-Score measures the reliability of reported earnings versus underlying cash flow
- Altman Z-Score — Altman Z-Score is the metric used to the reliability of reported earnings versus underlying cash flow
- Earnings Quality — Glossary entry for Earnings Quality
- United Healthcare Stock Price — related ValueMarkers analysis
- Nasdaq Nvda Financials — related ValueMarkers analysis
- Finviz Economic Calendar — related ValueMarkers analysis
Frequently Asked Questions
what happens if the stock market crashes
A broad market crash would likely pull GEHC down along with most equities, regardless of its fundamental quality. During the 2020 COVID crash, medtech stocks declined 25-35% before recovering. GEHC's Altman Z-Score above 3.0 and manageable debt levels suggest the company would survive a downturn, but the stock price could still fall 20-30% in a severe selloff. Having cash reserves to buy during such events can improve long-term returns significantly.
what time does the stock market open
The New York Stock Exchange and Nasdaq open for regular trading at 9:30 AM Eastern Time, Monday through Friday. Pre-market trading begins at 4:00 AM ET on most brokerage platforms, though liquidity is thin and spreads are wider during these hours. GEHC trades on the Nasdaq under the ticker symbol GEHC.
are stock markets closed today
US stock markets close on nine federal holidays each year: New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Markets also close early at 1:00 PM ET on the days before Independence Day, Thanksgiving, and Christmas. Check the NYSE holiday calendar for the current year's schedule.
what time does the stock market close
Regular trading hours end at 4:00 PM Eastern Time. After-hours trading continues until 8:00 PM ET on most major brokerage platforms. Prices during after-hours sessions can be more volatile due to lower volume. For GEHC specifically, earnings announcements typically happen before market open, which means pre-market trading sessions often see the largest price reactions.
when does the stock market open
US stock exchanges open at 9:30 AM Eastern Time every business day. For investors on the West Coast, that translates to 6:30 AM Pacific Time. For European investors tracking GEHC, the market opens at 2:30 PM GMT (3:30 PM CET). Setting limit orders the night before ensures you do not miss your target entry price while waiting for the market to open.
why is the stock market down today
Daily market declines can stem from economic data releases (higher-than-expected inflation, weaker employment numbers), Federal Reserve policy signals (rate hike expectations), geopolitical events (trade tensions, military conflicts), or sector-specific news. For healthcare stocks like GEHC, additional factors include Medicare reimbursement policy changes, FDA regulatory actions, and hospital spending data. Checking economic calendars and news feeds before market open helps contextualize daily moves.
Ready to analyze GE Healthcare alongside 70,000+ stocks with 120+ fundamental indicators? Try the ValueMarkers screener and find out how GEHC compares to every medtech company on the planet.
Written by Javier Sanz, Founder of ValueMarkers
Last updated April 2026
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Disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.