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 5 out of 10. We evaluated GEV against 97 industry peers in the Electrical Equipment industry. GEV has an average financial health and profitability rating. GEV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GEV had positive earnings in the past year.
GEV had a positive operating cash flow in the past year.
1.2 Ratios
GEV has a Return On Assets of 3.75%. This is amongst the best in the industry. GEV outperforms 80.41% of its industry peers.
With an excellent Return On Equity value of 22.49%, GEV belongs to the best of the industry, outperforming 92.78% of the companies in the same industry.
GEV has a better Return On Invested Capital (3.78%) than 68.04% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 5.42%, GEV belongs to the top of the industry, outperforming 80.41% of the companies in the same industry.
The Operating Margin of GEV (3.21%) is better than 69.07% of its industry peers.
GEV's Gross Margin of 18.51% is in line compared to the rest of the industry. GEV outperforms 49.48% of its industry peers.
In the last couple of years the Gross Margin of GEV has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
GEV has an Altman-Z score of 2.30. This is not the best score and indicates that GEV is in the grey zone with still only limited risk for bankruptcy at the moment.
GEV has a Altman-Z score of 2.30. This is in the better half of the industry: GEV outperforms 64.95% 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 | 2.3 |
ROIC/WACC0.43
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.04 indicates that GEV should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.04, GEV is doing worse than 77.32% 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 68.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 870.31% over the past year.
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%321.95%
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 96.47% on average per year.
Based on estimates for the next years, GEV will show a small growth in Revenue. The Revenue will grow by 7.59% on average per year.
EPS Next Y230.02%
EPS Next 2Y133.33%
EPS Next 3Y96.47%
EPS Next 5YN/A
Revenue Next Year4.65%
Revenue Next 2Y6.71%
Revenue Next 3Y7.59%
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 120.10, 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 65.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of GEV to the average of the S&P500 Index (27.75), we can say GEV is valued expensively.
The Price/Forward Earnings ratio is 36.77, which means the current valuation is very expensive for GEV.
Based on the Price/Forward Earnings ratio, GEV is valued a bit cheaper than 65.98% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GEV to the average of the S&P500 Index (20.49), we can say GEV is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.1 | ||
| Fwd PE | 36.77 |
4.2 Price Multiples
GEV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GEV is cheaper than 67.01% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GEV indicates a somewhat cheap valuation: GEV is cheaper than 72.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.74 | ||
| EV/EBITDA | 42.37 |
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 96.47% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y133.33%
EPS Next 3Y96.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.27%, GEV is not a good candidate for dividend investing.
GEV's Dividend Yield is a higher than the industry average which is at 4.55.
Compared to an average S&P500 Dividend Yield of 2.44, 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 2Y133.33%
EPS Next 3Y96.47%
396.32
+14.03 (+3.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.37%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner Change37.64%
Market Cap108.17B
Analysts81.67
Price Target411.9 (3.93%)
Short Float %1.85%
Short Ratio1.15
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-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.3%
Min EPS beat(2)-42.37%
Max EPS beat(2)122.98%
EPS beat(4)2
Avg EPS beat(4)10.15%
Min EPS beat(4)-77.43%
Max EPS beat(4)122.98%
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)-5.31%
PT rev (3m)7.54%
EPS NQ rev (1m)-6.36%
EPS NQ rev (3m)-39.96%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-6.15%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-5.57%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.1 | ||
| Fwd PE | 36.77 | ||
| P/S | 3.03 | ||
| P/FCF | 31.74 | ||
| P/OCF | 25.39 | ||
| P/B | 12.57 | ||
| P/tB | 31.21 | ||
| EV/EBITDA | 42.37 |
EPS(TTM)3.3
EY0.83%
EPS(NY)10.78
Fwd EY2.72%
FCF(TTM)12.49
FCFY3.15%
OCF(TTM)15.61
OCFY3.94%
SpS130.83
BVpS31.54
TBVpS12.7
PEG (NY)0.52
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 | 2.3 |
F-Score7
WACC8.84%
ROIC/WACC0.43
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%321.95%
EPS Next Y230.02%
EPS Next 2Y133.33%
EPS Next 3Y96.47%
EPS Next 5YN/A
Revenue 1Y (TTM)6.03%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%10.63%
Revenue Next Year4.65%
Revenue Next 2Y6.71%
Revenue Next 3Y7.59%
Revenue Next 5YN/A
EBIT growth 1Y532.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year307.67%
EBIT Next 3Y100.19%
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