GE VERNOVA INC (GEV) Stock Fundamental Analysis
NYSE:GEV - New York Stock Exchange, Inc. - US36828A1016 - Common Stock - Currency: USD
Overall GEV gets a fundamental rating of 4 out of 10. We evaluated GEV against 93 industry peers in the Electrical Equipment industry. GEV has only an average score on both its financial health and profitability. GEV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GEV had positive earnings in the past year.
In the past year GEV had a positive cash flow from operations.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.01%, GEV is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
The Return On Equity of GEV (16.26%) is better than 89.13% of its industry peers.
GEV has a Return On Invested Capital of 2.81%. This is in the better half of the industry: GEV outperforms 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 16.26% | ||
| ROIC | 2.81% |
ROA(3y)-1.36%
ROA(5y)N/A
ROE(3y)-5.11%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GEV's Profit Margin of 4.44% is fine compared to the rest of the industry. GEV outperforms 76.09% of its industry peers.
With a decent Operating Margin value of 2.55%, GEV is doing good in the industry, outperforming 69.57% of the companies in the same industry.
GEV's Gross Margin of 18.15% is in line compared to the rest of the industry. GEV outperforms 47.83% of its industry peers.
GEV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.55% | ||
| PM (TTM) | 4.44% | ||
| GM | 18.15% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.08%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GEV is destroying value.
Compared to 1 year ago, GEV has more shares outstanding
Compared to 1 year ago, GEV has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.26 indicates that GEV is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.26, GEV is doing good in the industry, outperforming 67.39% of the companies in the same industry.
There is no outstanding debt for GEV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.31
WACC9.15%
2.3 Liquidity
GEV has a Current Ratio of 1.08. This is a normal value and indicates that GEV is financially healthy and should not expect problems in meeting its short term obligations.
GEV has a Current ratio of 1.08. This is in the lower half of the industry: GEV underperforms 77.17% of its industry peers.
A Quick Ratio of 0.81 indicates that GEV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, GEV is doing worse than 68.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
GEV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 451.42%, which is quite impressive.
The Revenue has been growing slightly by 5.11% in the past year.
The Revenue has been growing slightly by 1.91% on average over the past years.
EPS 1Y (TTM)451.42%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%132.76%
Revenue 1Y (TTM)5.11%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%5.12%
3.2 Future
Based on estimates for the next years, GEV will show a very strong growth in Earnings Per Share. The EPS will grow by 95.70% on average per year.
The Revenue is expected to grow by 7.49% on average over the next years.
EPS Next Y225.83%
EPS Next 2Y132.16%
EPS Next 3Y95.7%
EPS Next 5YN/A
Revenue Next Year4.46%
Revenue Next 2Y6.52%
Revenue Next 3Y7.49%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 165.60, GEV can be considered very expensive at the moment.
GEV's Price/Earnings ratio is a bit cheaper when compared to the industry. GEV is cheaper than 67.39% of the companies in the same industry.
GEV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 50.82 indicates a quite expensive valuation of GEV.
GEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GEV is cheaper than 67.39% of the companies in the same industry.
GEV's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 165.6 | ||
| Fwd PE | 50.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEV is valued a bit cheaper than 67.39% of the companies in the same industry.
GEV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GEV is cheaper than 70.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.28 | ||
| EV/EBITDA | 44.13 |
4.3 Compensation for Growth
GEV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GEV's earnings are expected to grow with 95.70% in the coming years.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y132.16%
EPS Next 3Y95.7%
5. Dividend
5.1 Amount
GEV has a yearly dividend return of 0.27%, which is pretty low.
GEV's Dividend Yield is a higher than the industry average which is at 3.59.
Compared to an average S&P500 Dividend Yield of 2.29, GEV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
5.2 History
GEV does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y132.16%
EPS Next 3Y95.7%
327.88
-31.8 (-8.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.44%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner Change56%
Market Cap90.46B
Analysts78.67
Price Target432.01 (31.76%)
Short Float %1.67%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-59.9%
Min EPS beat(2)-77.43%
Max EPS beat(2)-42.37%
EPS beat(4)1
Avg EPS beat(4)-23.4%
Min EPS beat(4)-77.43%
Max EPS beat(4)37.42%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)0.47%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)12.79%
PT rev (3m)50.34%
EPS NQ rev (1m)-28.62%
EPS NQ rev (3m)-6.63%
EPS NY rev (1m)-7.34%
EPS NY rev (3m)-7.45%
Revenue NQ rev (1m)-5.45%
Revenue NQ rev (3m)-3.32%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 165.6 | ||
| Fwd PE | 50.82 | ||
| P/S | 2.59 | ||
| P/FCF | 39.28 | ||
| P/OCF | 28.39 | ||
| P/B | 9.48 | ||
| P/tB | 20.24 | ||
| EV/EBITDA | 44.13 |
EPS(TTM)1.98
EY0.6%
EPS(NY)6.45
Fwd EY1.97%
FCF(TTM)8.35
FCFY2.55%
OCF(TTM)11.55
OCFY3.52%
SpS126.63
BVpS34.6
TBVpS16.2
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 16.26% | ||
| ROCE | 4.5% | ||
| ROIC | 2.81% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 8.53% | ||
| OM | 2.55% | ||
| PM (TTM) | 4.44% | ||
| GM | 18.15% | ||
| FCFM | 6.59% |
ROA(3y)-1.36%
ROA(5y)N/A
ROE(3y)-5.11%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.08%
GM growth 5YN/A
F-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 75.34% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 12.04 | ||
| Cash Conversion | 154.44% | ||
| Profit Quality | 148.39% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.26 |
F-Score7
WACC9.15%
ROIC/WACC0.31
Cap/Depr(3y)60.36%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.17%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)451.42%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%132.76%
EPS Next Y225.83%
EPS Next 2Y132.16%
EPS Next 3Y95.7%
EPS Next 5YN/A
Revenue 1Y (TTM)5.11%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%5.12%
Revenue Next Year4.46%
Revenue Next 2Y6.52%
Revenue Next 3Y7.49%
Revenue Next 5YN/A
EBIT growth 1Y286.01%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year306.9%
EBIT Next 3Y99.99%
EBIT Next 5YN/A
FCF growth 1Y1745%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y427.48%
OCF growth 3YN/A
OCF growth 5YN/A