GE VERNOVA INC (GEV) Stock Fundamental Analysis
USA - NYSE:GEV - US36828A1016 - Common Stock
611 USD
-3.79 (-0.62%)
612.5 USD
+1.5 (+0.25%)
Taking everything into account, GEV scores 4 out of 10 in our fundamental rating. GEV was compared to 92 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.
In the past year GEV had a positive cash flow from operations.
1.2 Ratios
The Return On Assets of GEV (2.18%) is better than 73.91% of its industry peers.
GEV has a Return On Equity of 13.02%. This is amongst the best in the industry. GEV outperforms 83.70% of its industry peers.
GEV has a better Return On Invested Capital (3.16%) than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 13.02% | ||
| ROIC | 3.16% |
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
With a decent Profit Margin value of 3.16%, GEV is doing good in the industry, outperforming 75.00% of the companies in the same industry.
GEV's Operating Margin of 2.67% is fine compared to the rest of the industry. GEV outperforms 66.30% of its industry peers.
GEV's Gross Margin of 18.47% is on the low side compared to the rest of the industry. GEV is outperformed by 60.87% of its industry peers.
GEV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.67% | ||
| PM (TTM) | 3.16% | ||
| GM | 18.47% |
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
GEV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GEV has more shares outstanding
GEV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.10 indicates that GEV is not in any danger for bankruptcy at the moment.
GEV has a Altman-Z score of 3.10. This is in the better half of the industry: GEV outperforms 65.22% 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 | 3.1 |
ROIC/WACC0.36
WACC8.71%
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's Current ratio of 1.03 is on the low side compared to the rest of the industry. GEV is outperformed by 69.57% of its industry peers.
A Quick Ratio of 0.74 indicates that GEV may have some problems paying its short term obligations.
With a Quick ratio value of 0.74, GEV is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
GEV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.60%.
Looking at the last year, GEV shows a quite strong growth in Revenue. The Revenue has grown by 8.45% in the last year.
GEV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.91% yearly.
EPS 1Y (TTM)-3.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%73.53%
Revenue 1Y (TTM)8.45%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%11.06%
3.2 Future
GEV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 108.68% yearly.
The Revenue is expected to grow by 9.08% on average over the next years. This is quite good.
EPS Next Y278.54%
EPS Next 2Y154.18%
EPS Next 3Y108.68%
EPS Next 5YN/A
Revenue Next Year6.02%
Revenue Next 2Y7.94%
Revenue Next 3Y9.08%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 153.13, the valuation of GEV can be described as expensive.
GEV's Price/Earnings ratio is a bit cheaper when compared to the industry. GEV is cheaper than 65.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. GEV is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 47.76, GEV can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GEV indicates a somewhat cheap valuation: GEV is cheaper than 68.48% of the companies listed 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 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 153.13 | ||
| Fwd PE | 47.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEV is valued a bit cheaper than the industry average as 64.13% of the companies are valued more expensively.
GEV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GEV is cheaper than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.42 | ||
| EV/EBITDA | 77.64 |
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 108.68% in the coming years.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y154.18%
EPS Next 3Y108.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, GEV is not a good candidate for dividend investing.
GEV's Dividend Yield is a higher than the industry average which is at 3.03.
Compared to an average S&P500 Dividend Yield of 2.38, GEV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
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 Years1
5.3 Sustainability
DPN/A
EPS Next 2Y154.18%
EPS Next 3Y108.68%
611
-3.79 (-0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.84%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner Change4.46%
Market Cap166.33B
Analysts76.32
Price Target658.62 (7.79%)
Short Float %2.8%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)62.34%
Min EPS beat(2)16.4%
Max EPS beat(2)108.28%
EPS beat(4)2
Avg EPS beat(4)1.22%
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)2
Avg Revenue beat(2)3.98%
Min Revenue beat(2)2.53%
Max Revenue beat(2)5.42%
Revenue beat(4)3
Avg Revenue beat(4)1.34%
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)4.02%
PT rev (3m)43.76%
EPS NQ rev (1m)-1.3%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)7.96%
EPS NY rev (3m)8.13%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 153.13 | ||
| Fwd PE | 47.76 | ||
| P/S | 4.54 | ||
| P/FCF | 61.42 | ||
| P/OCF | 46.51 | ||
| P/B | 18.74 | ||
| P/tB | 46.07 | ||
| EV/EBITDA | 77.64 |
EPS(TTM)3.99
EY0.65%
EPS(NY)12.79
Fwd EY2.09%
FCF(TTM)9.95
FCFY1.63%
OCF(TTM)13.14
OCFY2.15%
SpS134.51
BVpS32.61
TBVpS13.26
PEG (NY)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 13.02% | ||
| ROCE | 5.06% | ||
| ROIC | 3.16% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 9.9% | ||
| OM | 2.67% | ||
| PM (TTM) | 3.16% | ||
| GM | 18.47% | ||
| FCFM | 7.4% |
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-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 80.59% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 174.1% | ||
| Profit Quality | 234.26% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 3.1 |
F-Score5
WACC8.71%
ROIC/WACC0.36
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)-3.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%73.53%
EPS Next Y278.54%
EPS Next 2Y154.18%
EPS Next 3Y108.68%
EPS Next 5YN/A
Revenue 1Y (TTM)8.45%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%11.06%
Revenue Next Year6.02%
Revenue Next 2Y7.94%
Revenue Next 3Y9.08%
Revenue Next 5YN/A
EBIT growth 1Y72.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year336.69%
EBIT Next 3Y107.63%
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