Taking everything into account, GEV scores 5 out of 10 in our fundamental rating. GEV was compared to 91 industry peers in the Electrical Equipment industry. GEV has only an average score on both its financial health and profitability. While showing a medium growth rate, GEV is valued expensive at the moment.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
The reported net income has been mixed in the past 5 years: GEV reported negative net income in multiple years.
In multiple years GEV reported negative operating cash flow during the last 5 years.

1.2 Ratios

GEV's Return On Assets of 7.75% is amongst the best of the industry. GEV outperforms 84.62% of its industry peers.
Looking at the Return On Equity, with a value of 43.69%, GEV belongs to the top of the industry, outperforming 97.80% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.49%, GEV is doing good in the industry, outperforming 71.43% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	7.75%
ROE	43.69%
ROIC	4.49%

ROA(3y)3.27%

ROA(5y)N/A

ROE(3y)18.02%

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

GEV has a Profit Margin of 12.83%. This is amongst the best in the industry. GEV outperforms 87.91% of its industry peers.
GEV has a Operating Margin of 4.17%. This is in the better half of the industry: GEV outperforms 67.03% of its industry peers.
GEV has a Gross Margin (20.04%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GEV has grown nicely.

		Industry Rank	Sector Rank
OM	4.17%
PM (TTM)	12.83%
GM	20.04%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y17.16%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GEV is destroying value.
The number of shares outstanding for GEV has been reduced compared to 1 year ago.
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.

2.2 Solvency

An Altman-Z score of 3.06 indicates that GEV is not in any danger for bankruptcy at the moment.
GEV has a Altman-Z score of 3.06. This is in the better half of the industry: GEV outperforms 64.84% of its industry peers.
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	3.06

ROIC/WACC0.51

WACC8.88%

2.3 Liquidity

GEV has a Current Ratio of 0.98. This is a bad value and indicates that GEV is not financially healthy enough and could expect problems in meeting its short term obligations.
GEV has a Current ratio of 0.98. This is in the lower half of the industry: GEV underperforms 72.53% of its industry peers.
A Quick Ratio of 0.73 indicates that GEV may have some problems paying its short term obligations.
GEV has a Quick ratio of 0.73. This is in the lower half of the industry: GEV underperforms 68.13% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.98
Quick Ratio	0.73

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 792.93% over the past year.
The Revenue has grown by 8.96% in the past year. This is quite good.
Measured over the past years, GEV shows a quite strong growth in Revenue. The Revenue has been growing by 8.68% on average per year.

EPS 1Y (TTM)792.93%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%906.77%

Revenue 1Y (TTM)8.96%

Revenue growth 3Y8.68%

Revenue growth 5YN/A

Sales Q2Q%3.76%

3.2 Future

GEV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.68% yearly.
The Revenue is expected to grow by 10.91% on average over the next years. This is quite good.

EPS Next Y-26.21%

EPS Next 2Y8.04%

EPS Next 3Y19.19%

EPS Next 5Y19.68%

Revenue Next Year12.54%

Revenue Next 2Y13.67%

Revenue Next 3Y12.55%

Revenue Next 5Y10.91%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 41.08, which means the current valuation is very expensive for GEV.
Based on the Price/Earnings ratio, GEV is valued a bit cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.30, GEV is valued a bit more expensive.
A Price/Forward Earnings ratio of 55.68 indicates a quite expensive valuation of GEV.
Based on the Price/Forward Earnings ratio, GEV is valued a bit cheaper than the industry average as 67.03% of the companies are valued more expensively.
GEV is valuated expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	41.08
Fwd PE	55.68

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GEV indicates a somewhat cheap valuation: GEV is cheaper than 64.84% of the companies listed in the same industry.
GEV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GEV is cheaper than 70.33% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	53.09
EV/EBITDA	76.18

4.3 Compensation for Growth

GEV's earnings are expected to grow with 19.19% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y8.04%

EPS Next 3Y19.19%

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5. Dividend

5.1 Amount

GEV has a yearly dividend return of 0.18%, which is pretty low.
Compared to an average industry Dividend Yield of 0.26, GEV pays a better dividend. On top of this GEV pays more dividend than 80.22% of the companies listed in the same industry.
With a Dividend Yield of 0.18, GEV pays less dividend than the S&P500 average, which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	0.18%

5.2 History

GEV has paid a dividend for less than 5 years, so there is no long track record yet.

Dividend Growth(5Y)N/A

Div Incr Years0

Div Non Decr Years1

5.3 Sustainability

GEV pays out 5.63% of its income as dividend. This is a sustainable payout ratio.

DP5.63%

EPS Next 2Y8.04%

EPS Next 3Y19.19%

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GE VERNOVA INC / GEV FAQ

What is the fundamental rating for GEV stock?

ChartMill assigns a fundamental rating of 5 / 10 to GEV.

What is the valuation status for GEV stock?

ChartMill assigns a valuation rating of 3 / 10 to GE VERNOVA INC (GEV). This can be considered as Overvalued.

How profitable is GE VERNOVA INC (GEV) stock?

GE VERNOVA INC (GEV) has a profitability rating of 5 / 10.

What are the PE and PB ratios of GE VERNOVA INC (GEV) stock?

The Price/Earnings (PE) ratio for GE VERNOVA INC (GEV) is 41.08 and the Price/Book (PB) ratio is 17.63.

What is the financial health of GE VERNOVA INC (GEV) stock?

The financial health rating of GE VERNOVA INC (GEV) is 5 / 10.