GE hit by COVID-19 and high debt

Article Excerpt

GENERAL ELECTRIC CO. $6.48 is still a hold. The company (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 8.75 billion; Market cap: $56.7 billion; Price-to-sales ratio: 0.7; Dividend yield: 0.6%; TSINetwork Rating: Average; www.ge.com) has three main businesses: aviation (jet engines and aircraft electronics); electrical power equipment (such as turbines and related equipment for gas-fired and nuclear power plants); and renewable power equipment (wind farms and hydroelectric plants). In the second quarter of 2020, GE’s revenue fell 24.2%, to $17.75 billion from $23.41 billion a year earlier. COVID-19 severely hurt demand for the company’s jet engines and power plant equipment. GE also lost $0.15 a share compared to its year-earlier profit of $0.16 a share. The company has cut its debt by $9.1 billion since the start of 2020. Even so, its remaining $34.0 billion of debt, which excludes the cash it holds, is a high 60% of its market cap. GE is a hold. hold…

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