General Electric (GE, $9.14) expects negative free cash flow in 2019
In a meeting with a J.P. Morgan Chase (JPM) analyst on Tuesday, the CEO of General Electric, Larry Culp, said that the company’s free cash flow – money left over after a company pays for operating expenses and capital spending – will be negative in 2019. After Culp’s comments, GE’s shares plunged nearly 4.7% to end the day at $9.89.
Free cash flow is often an indicator of a company's operating efficiency and as such is closely watched by investors.
The company generated ~$4.5 billion of free cash flow last year, but if it’s going negative from there, that means it is struggling with a few pressing issues. According to Culp, these are a combination of operational pressure, power, renewables, and then the non-operational pressures which he calls ‘policy.’ Culp further added that he is currently focussing on improving the company’s cash generation, as well as cutting costs.
However, prior to this meeting, the J.P. Morgan analyst had already warned investors not to get blind-sided by GE’s apparent gains, as the company’s prized aviation financing and leasing business are already in liquidation mode and has weakening earnings.
In reply, Culp assured that his team is fully committed to improve their disclosers and that investors need to remain patient through the restructuring process.
Despite this assurance, Culp has painted a realistic picture of where GE’s battered power business will struggle even more than last year resulting in a greater level of negative free cash flow. It may take another two years to turn around in this segment.
Culp also confirmed oxidation issues with the company’s line of gas-fired power turbines, called H-class turbines. But he added that these have been timely addressed by already upgrading 23 out of the 33 turbines.
GE in downward trend: price dove below 50-day moving average on August 19, 2026
GE moved below its 50-day moving average on August 19, 2026 date and that indicates a change from an upward trend to a downward trend. In of 34 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 18, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GE as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GE turned negative on August 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in of 369 cases, the price rose further within the following month. The odds of a continued upward trend are .
GE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 415 cases where GE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. GE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: GE's P/B Ratio (20.492) is slightly higher than the industry average of (6.821). P/E Ratio (41.081) is within average values for comparable stocks, (60.208). Projected Growth (PEG Ratio) (5.117) is also within normal values, averaging (8.077). Dividend Yield (0.005) settles around the average of (0.017) among similar stocks. P/S Ratio (7.267) is also within normal values, averaging (19.956).
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General Information
a manufacturer of products for the generation, transmission, distribution, control and utilization of electricity; manufactures aircraft engines and medical equipment
Industry AerospaceDefense
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