Is the business good?
How good a business is GEHC?
GE HealthCare earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
11%
Return on invested capital · cost of capital 9.0% · 2.3 points above what the capital costs: growth creates value
- Operating margin
- 13%
Operating margin · Medical Devices median 11% · 12 months to Q1 2026
- Share count, year on year
- −0.44%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 6.0%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 16% |
| FY2022 | 14% |
| FY2023 | 12% |
| FY2024 | 13% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q1 2026
- 39%
- Operating margin12 months to Q1 2026
- 13%
- Net margin12 months to Q1 2026
- 9.1%
- R&D as % of revenue
- 6.0%
- Revenue, trailing twelve months
- $21.0B
- Net income, trailing twelve months
- $1.91B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Medical Devices
Ranks #5 of 35 by Smart Score