GE VERNOVA INC (GEV) Stock Fundamental Analysis
NYSE:GEV - New York Stock Exchange, Inc. - US36828A1016 - Common Stock - Currency: USD
Taking everything into account, GEV scores 4 out of 10 in our fundamental rating. GEV was compared to 94 industry peers in the Electrical Equipment industry. GEV has an average financial health and profitability rating. GEV has a correct valuation and a medium 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
Looking at the Return On Assets, with a value of 3.75%, GEV is in the better half of the industry, outperforming 79.79% of the companies in the same industry.
GEV's Return On Equity of 22.49% is amongst the best of the industry. GEV outperforms 92.55% of its industry peers.
GEV has a better Return On Invested Capital (3.78%) than 70.21% 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 79.79% of its industry peers.
With a decent Operating Margin value of 3.21%, GEV is doing good in the industry, outperforming 69.15% of the companies in the same industry.
GEV has a Gross Margin (18.51%) which is in line with 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.
The number of shares outstanding for GEV has been increased compared to 1 year ago.
GEV has a better debt/assets ratio than last year.
2.2 Solvency
GEV has an Altman-Z score of 2.71. 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.
The Altman-Z score of GEV (2.71) is better than 65.96% 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 | 2.71 |
ROIC/WACC0.42
WACC9.06%
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.
GEV's Current ratio of 1.04 is on the low side compared to the rest of the industry. GEV is outperformed by 70.21% of its industry peers.
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 has a Quick ratio of 0.76. This is in the lower half of the industry: GEV underperforms 63.83% 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.
Looking at the last year, GEV shows a small growth in Revenue. The Revenue has grown by 6.03% in the last year.
The Revenue has been growing slightly by 1.91% on average over the past years.
EPS 1Y (TTM)870.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%307.32%
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 99.11% on average per year.
The Revenue is expected to grow by 7.96% on average over the next years.
EPS Next Y250.09%
EPS Next 2Y139.43%
EPS Next 3Y99.11%
EPS Next 5YN/A
Revenue Next Year5.28%
Revenue Next 2Y7.2%
Revenue Next 3Y7.96%
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 150.52.
Based on the Price/Earnings ratio, GEV is valued a bit cheaper than the industry average as 64.89% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GEV to the average of the S&P500 Index (26.60), we can say GEV is valued expensively.
Based on the Price/Forward Earnings ratio of 42.96, the valuation of GEV can be described as expensive.
Based on the Price/Forward Earnings ratio, GEV is valued a bit cheaper than 65.96% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, GEV is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 150.52 | ||
| Fwd PE | 42.96 |
4.2 Price Multiples
GEV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GEV is cheaper than 64.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GEV is valued a bit cheaper than the industry average as 71.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.06 | ||
| EV/EBITDA | 55.04 |
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 99.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y139.43%
EPS Next 3Y99.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.21%, GEV is not a good candidate for dividend investing.
GEV's Dividend Yield is a higher than the industry average which is at 4.28.
Compared to an average S&P500 Dividend Yield of 2.39, GEV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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 2Y139.43%
EPS Next 3Y99.11%
487.67
+4.2 (+0.87%)
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 Change37.03%
Market Cap133.10B
Analysts79.43
Price Target458.14 (-6.06%)
Short Float %2.21%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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)11.23%
PT rev (3m)5.32%
EPS NQ rev (1m)4.97%
EPS NQ rev (3m)5.25%
EPS NY rev (1m)6.08%
EPS NY rev (3m)7.7%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 150.52 | ||
| Fwd PE | 42.96 | ||
| P/S | 3.73 | ||
| P/FCF | 39.06 | ||
| P/OCF | 31.24 | ||
| P/B | 15.46 | ||
| P/tB | 38.4 | ||
| EV/EBITDA | 55.04 |
EPS(TTM)3.24
EY0.66%
EPS(NY)11.35
Fwd EY2.33%
FCF(TTM)12.49
FCFY2.56%
OCF(TTM)15.61
OCFY3.2%
SpS130.83
BVpS31.54
TBVpS12.7
PEG (NY)0.6
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 | 2.71 |
F-Score7
WACC9.06%
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)870.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%307.32%
EPS Next Y250.09%
EPS Next 2Y139.43%
EPS Next 3Y99.11%
EPS Next 5YN/A
Revenue 1Y (TTM)6.03%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%10.63%
Revenue Next Year5.28%
Revenue Next 2Y7.2%
Revenue Next 3Y7.96%
Revenue Next 5YN/A
EBIT growth 1Y532.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year305.22%
EBIT Next 3Y99.55%
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