Operating Margin - General Electric Co (NYSE:GE)

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Price: 298.31 USD -0.89%

Market Cap: 314.7B USD

17.6%

Current

16%

Average

7.9%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

17.6%

Operating Profit

7.7B

Revenue

43.9B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US		General Electric Co NYSE:GE	314.7B USD	18%
DE		Siemens AG XETRA:SIE	185.8B EUR	12%
JP		Hitachi Ltd TSE:6501	22T JPY	11%
US		Honeywell International Inc NASDAQ:HON	125.5B USD	20%
US		3M Co NYSE:MMM	86.8B USD	21%
ZA	B	Bidvest Group Ltd JSE:BVT	77.4B Zac	9%
US	R	Roper Technologies Inc F:ROP	40.6B EUR	28%
CN		CITIC Ltd HKEX:267	356.1B HKD	0%
MY	W	Warisan TC Holdings Bhd KLSE:WARISAN	111.4B MYR	-3%
KR		Samsung C&T Corp KRX:028260	39.8T KRW	8%
HK		CK Hutchison Holdings Ltd HKEX:1	205.1B HKD	9%

General Electric Co
Glance View

Economic Moat

Wide

Market Cap

314.7B USD

Industry

Industrial Conglomerates

General Electric Co., commonly known as GE, is a titan that has been at the heart of American industrial prowess for over a century. Originating in the era of Thomas Edison, the company has grown and evolved into a multifaceted conglomerate that spans several sectors, including aviation, power, renewable energy, and healthcare. GE's operational backbone is its ability to integrate advanced technologies with industrial excellence, producing everything from aircraft engines and gas turbines to medical imaging equipment. This diverse portfolio is unified by GE's commitment to innovation and efficiency, making it a critical player in industries that demand precision and reliability. Each business unit works somewhat autonomously but benefits from the shared resources and strengths of being under the GE umbrella, fostering a culture of interconnectivity and mutual reinforcement. GE generates revenue primarily by providing high-tech products and essential services that increase operational efficiency for its customers. For example, its aviation segment thrives by not only manufacturing jet engines but also offering maintenance and digital services, thereby ensuring sustained income streams long after the initial sale. In the energy sector, GE's focus is on producing and maintaining power plants using both traditional and renewable sources, such as wind. The company also invests significantly in digital innovation, using data analytics to harness industrial efficiency across all segments. Healthcare, another key area, allows GE to capitalize on cutting-edge diagnostic and imaging technologies that serve a rapidly growing and evolving market. By leveraging its engineering expertise and scale, GE positions itself to capture long-term contracts and build lasting relationships with global leaders in each domain it touches, crafting a business model that prioritizes both present returns and future growth.

View GE Analysis

GE Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

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	Bank of America Corp NYSE:BAC	54.94 USD -0.7%
	Mastercard Inc NYSE:MA	566.33 USD -0.49%
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General Electric Co
NYSE:GE