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 94 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
In the past year GEV was profitable.
GEV had a positive operating cash flow in the past year.
1.2 Ratios
GEV's Return On Assets of 3.75% is fine compared to the rest of the industry. GEV outperforms 79.79% of its industry peers.
The Return On Equity of GEV (22.49%) is better than 92.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.78%, GEV is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 22.49% | ||
| ROIC | 3.78% |
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 has a Profit Margin of 5.42%. This is in the better half of the industry: GEV outperforms 79.79% of its industry peers.
The Operating Margin of GEV (3.21%) is better than 69.15% of its industry peers.
The Gross Margin of GEV (18.51%) is comparable to the rest of the industry.
GEV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.21% | ||
| PM (TTM) | 5.42% | ||
| GM | 18.51% |
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.
GEV has more shares outstanding than it did 1 year ago.
The debt/assets ratio for GEV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.77 indicates that GEV is not a great score, but indicates only limited risk for bankruptcy at the moment.
GEV's Altman-Z score of 2.77 is fine compared to the rest of the industry. GEV outperforms 64.89% of its industry peers.
GEV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.37
WACC10.12%
2.3 Liquidity
GEV has a Current Ratio of 1.04. This is a normal value and indicates that GEV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.04, GEV is doing worse than 70.21% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that GEV may have some problems paying its short term obligations.
GEV has a worse Quick ratio (0.76) than 63.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
GEV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 870.31%, which is quite impressive.
The Revenue has been growing slightly by 6.03% in the past year.
Measured over the past years, GEV shows a small growth in Revenue. The Revenue has been growing by 1.91% on average per year.
EPS 1Y (TTM)870.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%307.32%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%10.63%
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 101.72% on average per year.
GEV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.06% yearly.
EPS Next Y243.9%
EPS Next 2Y140.03%
EPS Next 3Y101.73%
EPS Next 5YN/A
Revenue Next Year5.27%
Revenue Next 2Y7.19%
Revenue Next 3Y8.06%
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
The Price/Earnings ratio is 155.89, which means the current valuation is very expensive for GEV.
Based on the Price/Earnings ratio, GEV is valued a bit cheaper than 64.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, GEV is valued quite expensively.
With a Price/Forward Earnings ratio of 44.27, GEV can be considered very expensive at the moment.
GEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GEV is cheaper than 67.02% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, GEV is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 155.89 | ||
| Fwd PE | 44.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEV is valued a bit cheaper than the industry average as 64.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GEV is valued a bit cheaper than 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.45 | ||
| EV/EBITDA | 57.24 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GEV's earnings are expected to grow with 101.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y140.03%
EPS Next 3Y101.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, GEV is not a good candidate for dividend investing.
GEV's Dividend Yield is a higher than the industry average which is at 4.40.
With a Dividend Yield of 0.20, GEV pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
5.2 History
GEV is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y140.03%
EPS Next 3Y101.73%
505.07
-0.93 (-0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners78.65%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner Change37.03%
Market Cap137.85B
Analysts79.43
Price Target475.05 (-5.94%)
Short Float %2.2%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)32.95%
Min EPS beat(2)-42.37%
Max EPS beat(2)108.28%
EPS beat(4)2
Avg EPS beat(4)6.47%
Min EPS beat(4)-77.43%
Max EPS beat(4)108.28%
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)1.17%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)5.42%
Revenue beat(4)2
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)5.42%
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)15.05%
PT rev (3m)9.97%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)4.96%
EPS NY rev (1m)-1.77%
EPS NY rev (3m)4.15%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 155.89 | ||
| Fwd PE | 44.27 | ||
| P/S | 3.86 | ||
| P/FCF | 40.45 | ||
| P/OCF | 32.36 | ||
| P/B | 16.02 | ||
| P/tB | 39.77 | ||
| EV/EBITDA | 57.24 |
EPS(TTM)3.24
EY0.64%
EPS(NY)11.41
Fwd EY2.26%
FCF(TTM)12.49
FCFY2.47%
OCF(TTM)15.61
OCFY3.09%
SpS130.83
BVpS31.54
TBVpS12.7
PEG (NY)0.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 22.49% | ||
| ROCE | 6.06% | ||
| ROIC | 3.78% | ||
| ROICexc | 6.63% | ||
| ROICexgc | 12.68% | ||
| OM | 3.21% | ||
| PM (TTM) | 5.42% | ||
| GM | 18.51% | ||
| FCFM | 9.54% |
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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 75.67% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 187.58% | ||
| Profit Quality | 176.03% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.77 |
F-Score7
WACC10.12%
ROIC/WACC0.37
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)870.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%307.32%
EPS Next Y243.9%
EPS Next 2Y140.03%
EPS Next 3Y101.73%
EPS Next 5YN/A
Revenue 1Y (TTM)6.03%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%10.63%
Revenue Next Year5.27%
Revenue Next 2Y7.19%
Revenue Next 3Y8.06%
Revenue Next 5YN/A
EBIT growth 1Y532.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year305.22%
EBIT Next 3Y99.55%
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