GE VERNOVA INC (GEV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GEV - US36828A1016 - Common Stock
657.78 USD
-3.89 (-0.59%)
656.365 USD
-1.41 (-0.22%)
We assign a fundamental rating of 5 out of 10 to GEV. 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. GEV has a correct valuation and a medium growth rate.
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
- GEV's Return On Assets of 3.13% is fine compared to the rest of the industry. GEV outperforms 72.53% of its industry peers.
- With an excellent Return On Equity value of 19.71%, GEV belongs to the best of the industry, outperforming 91.21% of the companies in the same industry.
- GEV has a Return On Invested Capital of 5.16%. This is in the better half of the industry: GEV outperforms 72.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 19.71% | ||
| ROIC | 5.16% |
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 4.52% is fine compared to the rest of the industry. GEV outperforms 75.82% of its industry peers.
- GEV's Operating Margin of 4.20% is fine compared to the rest of the industry. GEV outperforms 67.03% of its industry peers.
- The Gross Margin of GEV (19.69%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of GEV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.2% | ||
| PM (TTM) | 4.52% | ||
| GM | 19.69% |
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.
- The number of shares outstanding for GEV has been increased compared to 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 3.23 indicates that GEV is not in any danger for bankruptcy at the moment.
- GEV has a Altman-Z score of 3.23. This is in the better half of the industry: GEV outperforms 65.93% 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 | 3.23 |
ROIC/WACC0.58
WACC8.89%
2.3 Liquidity
- GEV has a Current Ratio of 1.03. 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 1.03. This is in the lower half of the industry: GEV underperforms 72.53% of its industry peers.
- A Quick Ratio of 0.74 indicates that GEV may have some problems paying its short term obligations.
- GEV has a Quick ratio of 0.74. This is in the lower half of the industry: GEV underperforms 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- GEV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.33%, which is quite impressive.
- GEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.44%.
- 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)34.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4075%
Revenue 1Y (TTM)9.44%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%11.85%
3.2 Future
- GEV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 79.79% yearly.
- GEV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.28% yearly.
EPS Next Y271.81%
EPS Next 2Y154.93%
EPS Next 3Y117.39%
EPS Next 5Y79.79%
Revenue Next Year6.25%
Revenue Next 2Y9.23%
Revenue Next 3Y11.07%
Revenue Next 5Y11.28%
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 117.04, which means the current valuation is very expensive for GEV.
- 67.03% of the companies in the same industry are more expensive than GEV, based on the Price/Earnings ratio.
- GEV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 51.12, the valuation of GEV can be described as expensive.
- 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.
- When comparing the Price/Forward Earnings ratio of GEV to the average of the S&P500 Index (24.26), we can say GEV is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.04 | ||
| Fwd PE | 51.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GEV is valued a bit cheaper than 67.03% 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 68.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.11 | ||
| EV/EBITDA | 69.38 |
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.
- A more expensive valuation may be justified as GEV's earnings are expected to grow with 117.39% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y154.93%
EPS Next 3Y117.39%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.19%, GEV is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.26, GEV pays a better dividend. On top of this GEV pays more dividend than 81.32% of the companies listed in the same industry.
- With a Dividend Yield of 0.19, GEV pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
- GEV has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y154.93%
EPS Next 3Y117.39%
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 5 / 10 to GE VERNOVA INC (GEV). This can be considered as Fairly Valued.
How profitable is GE VERNOVA INC (GEV) stock?
GE VERNOVA INC (GEV) has a profitability rating of 4 / 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 117.04 and the Price/Book (PB) ratio is 20.64.
What is the financial health of GE VERNOVA INC (GEV) stock?
The financial health rating of GE VERNOVA INC (GEV) is 5 / 10.