GE HealthCare Technologies Inc. GEHC
GEHC trades at 20.2x P/E and 11.5x EV/EBITDA, roughly 35% below peer medians, despite revenue accelerating to 5.8% YoY growth in Q2 2026 and EPS of $1.24 beating estimates by 8.7%. A cluster buy by six insiders including CEO Arduini, CFO Saccaro, and director Larry Culp totaling ~$5.7M at $60–62 in April–May 2026 signals strong internal conviction at levels near current prices, while active product launches across ultrasound and photon-counting CT support the growth narrative.
The main concerns are gross margin compression from 41.7% in FY2024 to 40.0% in FY2025, declining FCF from $1.80B in 2022 to $1.51B in 2025, and a technically weak tape with the stock below its 200-day MA of $72.78 and a bearish MACD histogram, but the valuation discount and insider alignment outweigh these headwinds at current levels.
What could go wrong
- Margin compression. Gross margin declined from 41.7% in FY2024 to 40.0% in FY2025; if cost pressures persist, operating leverage could stall.
- FCF deterioration. Free cash flow fell from $1.80B in FY2022 to $1.51B in FY2025 while total debt rose to $10.0B, tightening financial flexibility.
- Smart money outflows. Smart money score dropped from 0.0797 as of 2025-12-31 to 0.0233 as of 2026-06-30, suggesting institutional positioning has weakened.
- Technical weakness. Stock at $70.42 sits below its 200-day MA of $72.78 with a negative MACD histogram of -0.64, indicating bearish momentum.
What would change my mind
Where this comes from: peer_relative · peer_relative · quarterly_results Q2 2026 · earnings_surprises 2026-07-29. Orin's read on GEHC; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All GEHC filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 8-K | 22 Sep | — | on file |
| 8-K | 18 Aug | GE HealthCare Technologies Inc. | read |
| 13G/A | 7 Aug | — | on file |
| 13G/A | 7 Aug | — | on file |
| 8-K | 29 Jul | GE HealthCare Technologies Inc. | read |
| 10-Q | 29 Jul | GE HealthCare reported total revenues of $5,295 million for the three months ended June 30, 2026, a 5.7% increase year-over-year, and $10,425 million for the six months ended June… | read |
| 8-K | 29 Jul | GE HealthCare Technologies Inc. | read |
| 8-K | 23 Jul | GE HealthCare Technologies Inc. | read |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Capital Management | $1.9B | 0.0% of fund |
| State Street | $1.3B | 0.0% of fund |
| Vanguard Portfolio Management | $1.3B | 0.1% of fund |
| Invesco | $1.2B | 0.1% of fund |
| Harris Associates L P | $981.3M | 1.3% of fund |
| Geode Capital Management | $820.8M | 0.0% of fund |
98 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 107 Form 4 filings, net $22.5M. Of the 50 on hand, 6 were open-market purchases and 0 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about GEHC
Orin answers questions about GEHC from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 20.0× | 17.9× | 26.4× |
| EV/EBITDA | 11.4× | 11.3× | — |
| P/S | 1.56× | 1.80× | — |
| P/B | 2.9× | 3.6× | — |
Its P/E sits 80th percentile of its own last 5 years (+0.88σ from its own mean).
7.6%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.5B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$79
$65 – $90 · +19% against today's price
- 10 buy or overweight
- 8 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| GEHCGE HealthCare Technologies Inc. | $31B | 20.0× | 11.4× | 42.9% | 7.9% | 15% |
| AAgilent Technologies, Inc. | $42B | 29.5× | 22.6× | 53.7% | 19.5% | 20% |
| CAHCardinal Health, Inc. | $58B | 34.2× | 18.2× | 3.8% | 0.7% | -60% |
| HUMHumana Inc. | $49B | 38.2× | 18.3× | 13.7% | 0.9% | 7% |
| IQVIQVIA Holdings Inc. | $45B | 33.4× | 16.7× | 26.2% | 8.1% | 22% |
| MTDMettler-Toledo International Inc. | $27B | 30.5× | 22.7× | 59.3% | 21.9% | -1200% |
| RMDResMed Inc. | $33B | 22.0× | 15.2× | 61.2% | 26.9% | 24% |
The median is of the 6 peers listed above and nothing else — check it against the column. This company trades 37.3% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $161 | $64.81 · +148% | 2026-06-10 |
| Levered DCF | $105 | $64.81 · +63% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.