GE VERNOVA INC (GEV) Stock Fundamental Analysis
NYSE:GEV - US36828A1016 - Common Stock
582.08 USD
-16.73 (-2.79%)
579.06 USD
-3.02 (-0.52%)
GEV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 92 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.
In the past year GEV had a positive cash flow from operations.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.18%, GEV is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
GEV's Return On Equity of 13.02% is amongst the best of the industry. GEV outperforms 83.70% of its industry peers.
With a decent Return On Invested Capital value of 3.16%, GEV is doing good in the industry, outperforming 67.39% of the companies in the same industry.
| 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
GEV has a better Profit Margin (3.16%) than 75.00% of its industry peers.
With a decent Operating Margin value of 2.67%, GEV is doing good in the industry, outperforming 66.30% of the companies in the same industry.
GEV has a Gross Margin of 18.47%. This is in the lower half of the industry: GEV underperforms 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
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 2.98. 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's Altman-Z score of 2.98 is fine compared to the rest of the industry. GEV outperforms 65.22% 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 | 2.98 |
ROIC/WACC0.36
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.03 indicates that GEV should not have too much problems paying its short term obligations.
GEV has a worse Current ratio (1.03) than 69.57% of its industry peers.
GEV has a Quick Ratio of 1.03. This is a bad value and indicates that GEV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GEV (0.74) is worse than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for GEV have decreased by -3.60% in the last year.
Looking at the last year, GEV shows a quite strong growth in Revenue. The Revenue has grown by 8.45% in the last year.
The Revenue has been growing slightly by 1.91% on average over the past years.
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
The Earnings Per Share is expected to grow by 108.68% on average over the next years. This is a very strong growth
Based on estimates for the next years, GEV will show a quite strong growth in Revenue. The Revenue will grow by 9.12% on average per year.
EPS Next Y278.54%
EPS Next 2Y154.18%
EPS Next 3Y108.68%
EPS Next 5YN/A
Revenue Next Year6.02%
Revenue Next 2Y8.04%
Revenue Next 3Y9.12%
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
GEV is valuated quite expensively with a Price/Earnings ratio of 145.88.
65.22% of the companies in the same industry are more expensive than GEV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.06. GEV is valued rather expensively when compared to this.
GEV is valuated quite expensively with a Price/Forward Earnings ratio of 45.50.
GEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GEV is cheaper than 68.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GEV to the average of the S&P500 Index (22.69), we can say GEV is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 145.88 | ||
| Fwd PE | 45.5 |
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 64.13% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GEV is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.51 | ||
| EV/EBITDA | 73.3 |
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 108.68% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y154.18%
EPS Next 3Y108.68%
5. Dividend
5.1 Amount
GEV has a yearly dividend return of 0.17%, which is pretty low.
Compared to an average industry Dividend Yield of 3.33, GEV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, GEV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
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%
582.08
-16.73 (-2.79%)
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 Cap158.45B
Analysts76.32
Price Target654.54 (12.45%)
Short Float %2.54%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
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)25.53%
PT rev (3m)42.87%
EPS NQ rev (1m)-1.24%
EPS NQ rev (3m)3.52%
EPS NY rev (1m)7.96%
EPS NY rev (3m)8.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 145.88 | ||
| Fwd PE | 45.5 | ||
| P/S | 4.33 | ||
| P/FCF | 58.51 | ||
| P/OCF | 44.31 | ||
| P/B | 17.85 | ||
| P/tB | 43.89 | ||
| EV/EBITDA | 73.3 |
EPS(TTM)3.99
EY0.69%
EPS(NY)12.79
Fwd EY2.2%
FCF(TTM)9.95
FCFY1.71%
OCF(TTM)13.14
OCFY2.26%
SpS134.51
BVpS32.61
TBVpS13.26
PEG (NY)0.52
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 | 2.98 |
F-Score5
WACC8.75%
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 2Y8.04%
Revenue Next 3Y9.12%
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