Buffett Brain · Research note
Score updated 28 Oct 2026 · analysis from 18 Sept 2026
GEHC· Healthcare
GE HealthCare Technologies
GE HealthCare's 6.7% ROIC and 12.5% operating margin fall below Buffett's thresholds, lacking a durable moat.
Buffett fit
Weak fit
Owner
35
Durability
57
Management
40
Price
60
Score updated 28 Oct 2026 · analysis from 18 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of GE HealthCare, the focus would be on improving from its current 6.7% and of 12.5%.
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The 10-year durability of GE HealthCare is questionable due to its below-average and margins compared to sector peers.
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GE HealthCare's management has shown conservative with a 5-year share count CAGR of 0.1% and a minimal yield.
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With a of 18.4 and an yield of 5.45%, GE HealthCare's valuation does not offer a significant .
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Global presence with operations across multiple continents.
- 2Diverse product segments including Imaging and Ultrasound.
- 3Consistent profitability over the last 5 years.
- 4Interest coverage ratio of 5.7 indicates ability to meet debt obligations.
Concerns
5- 1 of 6.7% is below the sector's top-quintile cutoff of 10.7%.
- 2 of 42.5% is significantly below the sector's 77.9% threshold.
- 3EPS CAGR over 5 years is negative at -1.78%, indicating declining earnings.
- 4Net debt/EBITDA of 2.61 exceeds Buffett's comfort level of 2x.
Price history
$71.11+25.3%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
GE HealthCare operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The company generates revenue by selling medical equipment and providing healthcare solutions globally. With a of 42.5% and a net margin of 7.5%, the business relies on its product innovation and service offerings. However, the unit economics are pressured by below-sector-average margins.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 28, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Healthcare
Questions about GE HealthCare Technologies
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