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 4 out of 10. We evaluated GEV against 93 industry peers in the Electrical Equipment industry. GEV has an average financial health and profitability rating. GEV has a decent growth rate and is not valued too expensively.
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
The Return On Assets of GEV (3.75%) is better than 77.42% of its industry peers.
GEV's Return On Equity of 22.49% is amongst the best of the industry. GEV outperforms 92.47% of its industry peers.
GEV has a Return On Invested Capital of 3.78%. This is in the better half of the industry: GEV outperforms 69.89% 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
GEV has a better Profit Margin (5.42%) than 79.57% of its industry peers.
Looking at the Operating Margin, with a value of 3.21%, GEV is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
GEV has a Gross Margin (18.51%) which is in line with its industry peers.
GEV's Gross Margin has improved in the last couple of years.
| 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
An Altman-Z score of 3.21 indicates that GEV is not in any danger for bankruptcy at the moment.
GEV has a Altman-Z score of 3.21. This is in the better half of the industry: GEV outperforms 67.74% 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 | 3.21 |
ROIC/WACC0.42
WACC8.98%
2.3 Liquidity
GEV has a Current Ratio of 1.04. This is a normal value and indicates that GEV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.04, GEV is doing worse than 69.89% of the companies in the same industry.
GEV has a Quick Ratio of 1.04. This is a bad value and indicates that GEV is not financially healthy enough and could expect problems in meeting its short term obligations.
GEV's Quick ratio of 0.76 is on the low side compared to the rest of the industry. GEV is outperformed by 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
GEV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 446.75%, which is quite impressive.
The Revenue has been growing slightly by 5.10% 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)446.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%73.53%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%11.06%
3.2 Future
The Earnings Per Share is expected to grow by 102.52% 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 8.80% on average per year.
EPS Next Y250.64%
EPS Next 2Y140.1%
EPS Next 3Y102.52%
EPS Next 5YN/A
Revenue Next Year5.7%
Revenue Next 2Y7.64%
Revenue Next 3Y8.8%
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 155.87, 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 64.52% of the companies in the same industry.
GEV is valuated expensively when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 54.49, the valuation of GEV can be described as expensive.
GEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GEV is cheaper than 67.74% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GEV to the average of the S&P500 Index (35.34), we can say GEV is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 155.87 | ||
| Fwd PE | 54.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEV is valued a bit cheaper than 65.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GEV is valued a bit cheaper than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.68 | ||
| EV/EBITDA | 70.98 |
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 102.52% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y140.1%
EPS Next 3Y102.52%
5. Dividend
5.1 Amount
GEV has a yearly dividend return of 0.16%, which is pretty low.
GEV's Dividend Yield is a higher than the industry average which is at 3.86.
Compared to an average S&P500 Dividend Yield of 2.36, 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 2Y140.1%
EPS Next 3Y102.52%
621.91
-3.36 (-0.54%)
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 Change26.53%
Market Cap169.30B
Analysts77.37
Price Target633.15 (1.81%)
Short Float %2.36%
Short Ratio2.06
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)1
Avg EPS beat(2)32.95%
Min EPS beat(2)-42.37%
Max EPS beat(2)108.28%
EPS beat(4)2
Avg EPS beat(4)6.47%
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)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)33.28%
PT rev (3m)53.34%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)6.27%
EPS NY rev (1m)0%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 155.87 | ||
| Fwd PE | 54.49 | ||
| P/S | 4.74 | ||
| P/FCF | 49.68 | ||
| P/OCF | 39.74 | ||
| P/B | 19.67 | ||
| P/tB | 48.85 | ||
| EV/EBITDA | 70.98 |
EPS(TTM)3.99
EY0.64%
EPS(NY)11.41
Fwd EY1.84%
FCF(TTM)12.52
FCFY2.01%
OCF(TTM)15.65
OCFY2.52%
SpS131.17
BVpS31.62
TBVpS12.73
PEG (NY)0.62
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 | 3.21 |
F-Score7
WACC8.98%
ROIC/WACC0.42
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)446.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%73.53%
EPS Next Y250.64%
EPS Next 2Y140.1%
EPS Next 3Y102.52%
EPS Next 5YN/A
Revenue 1Y (TTM)5.1%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%11.06%
Revenue Next Year5.7%
Revenue Next 2Y7.64%
Revenue Next 3Y8.8%
Revenue Next 5YN/A
EBIT growth 1Y532.08%
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