Renewables Offer Huge Growth Potential for GE
GE Renewable Energy doesn't get a lot of attention during investor conferences. But if you're looking to build a bullish case for buying General Electric (NYSE: GE), you must include positive assumptions about this segment. It could swing the needle in terms of earnings and cash flow over the long term. Here's why it's GE's most interesting business.
It might seem bizarre to single out the renewable energy business. After all, it's currently loss-making and eats up cash. However, it is the GE division with the biggest potential to surprise investors.
Looking at the other segments, the healthcare business is low-growth now that the biopharma segment has been sold. In fact, GE Healthcare only generated $1.2 billion in free cash flow (FCF) in 2019. Aviation will obviously be the biggest earnings/FCF generator in the future, but investors already knew that.
Source Fool.com
