Core Thesis - GE Aerospace is positioned as a strong investment opportunity due to its unique business model, high-margin service activities, and significant order backlog, which provide consistent cash flow and long-term growth potential [2][4][5]. Business Model - GE Aerospace operates by designing high-performance airplane engines and securing long-term service contracts, with approximately 70% of its revenue derived from service-based activities, which are high-margin and recurring [2][3]. - The company differentiates itself from peers by focusing on engine manufacturing rather than diversified industrial products, leading to a more stable cash flow [3][4]. Financial Performance - In 2024, GE Aerospace reported gross and net margins of 31.6% and 18.4%, respectively, with a strong free cash flow (FCF) margin of 17.4% [3][4]. - The company maintains a net equity of $19.35 billion and has a $140 billion order backlog, indicating strong market confidence and operational stability [4]. Valuation and Growth Potential - A conservative Discounted Cash Flow (DCF) analysis suggests a fair value of $322 per share, indicating a potential upside of 17% from the current trading price of $282.27 [5]. - The company is expected to achieve annual revenue growth of 10-15%, with limited downside risk even in slower growth scenarios [5]. Competitive Positioning - GE Aerospace benefits from monopolistic traits such as high barriers to entry and economies of scale, making it a preferred partner for airlines and governments [4]. - The focus on long-term contracts and recurring revenue streams enhances the company's stability and growth prospects [5].

GE Aerospace Today GE GE Aerospace $193.71 +4.53 (+2.39%) 52-Week Range $150.20 ▼ $214.21 Dividend Yield 0.74% P/E Ratio 32.34 Price Target $216.15 Add to Watchlist GE Aerospace NYSE: GE, the newly streamlined version of the former General Electric, is emerging as a compelling turnaround story in 2025. Now unencumbered by its former conglomerate structure, the company is free to focus on its core strength: building airplane engines and servicing the aerospace industry. Based on analyst and industry trends, ...