GE VERNOVA INC (GEV) Stock Fundamental Analysis
USA - NYSE:GEV - US36828A1016 - Common Stock
594.99 USD
-11.24 (-1.85%)
594.007 USD
-0.98 (-0.17%)
GEV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 93 industry peers in the Electrical Equipment industry. Both the profitability and the financial health of GEV get a neutral evaluation. Nothing too spectacular is happening here. 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
GEV has a better Return On Assets (2.18%) than 73.91% of its industry peers.
With an excellent Return On Equity value of 13.02%, GEV belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.16%, GEV is in the better half of 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
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.
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.
With a Gross Margin value of 18.47%, GEV is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
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
Compared to 1 year ago, GEV has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.07 indicates that GEV is not in any danger for bankruptcy at the moment.
The Altman-Z score of GEV (3.07) is better than 64.13% 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 | 3.07 |
ROIC/WACC0.36
WACC8.78%
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.
GEV has a worse Quick ratio (0.74) 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.
The Revenue has grown by 8.45% in the past year. This is quite good.
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 109.89% 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 9.08% on average per year.
EPS Next Y278.06%
EPS Next 2Y153.56%
EPS Next 3Y109.89%
EPS Next 5YN/A
Revenue Next Year6.02%
Revenue Next 2Y7.94%
Revenue Next 3Y9.08%
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 149.12.
Based on the Price/Earnings ratio, GEV is valued a bit cheaper than the industry average as 66.30% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.86. GEV is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 46.74, which means the current valuation is very expensive for GEV.
Based on the Price/Forward Earnings ratio, GEV is valued a bit cheaper than 65.22% of the companies in the same industry.
GEV is valuated expensively when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 149.12 | ||
| Fwd PE | 46.74 |
4.2 Price Multiples
GEV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GEV is cheaper than 64.13% 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 70.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.81 | ||
| EV/EBITDA | 76.5 |
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.
GEV's earnings are expected to grow with 109.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y153.56%
EPS Next 3Y109.89%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, GEV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.12, GEV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, GEV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
5.2 History
GEV is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y153.56%
EPS Next 3Y109.89%
594.99
-11.24 (-1.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners78.87%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner Change4.46%
Market Cap161.97B
Analysts76.84
Price Target662.78 (11.39%)
Short Float %2.71%
Short Ratio2.63
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)0.87%
PT rev (3m)38.64%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)9.93%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 149.12 | ||
| Fwd PE | 46.74 | ||
| P/S | 4.42 | ||
| P/FCF | 59.81 | ||
| P/OCF | 45.29 | ||
| P/B | 18.25 | ||
| P/tB | 44.87 | ||
| EV/EBITDA | 76.5 |
EPS(TTM)3.99
EY0.67%
EPS(NY)12.73
Fwd EY2.14%
FCF(TTM)9.95
FCFY1.67%
OCF(TTM)13.14
OCFY2.21%
SpS134.51
BVpS32.61
TBVpS13.26
PEG (NY)0.54
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 | 3.07 |
F-Score5
WACC8.78%
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 Y278.06%
EPS Next 2Y153.56%
EPS Next 3Y109.89%
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 Year338.5%
EBIT Next 3Y109.52%
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