GE VERNOVA INC (GEV) Stock Fundamental Analysis
USA - NYSE:GEV - US36828A1016 - Common Stock
602 USD
-13.95 (-2.26%)
601.128 USD
-0.87 (-0.14%)
We assign a fundamental rating of 4 out of 10 to GEV. GEV was compared to 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
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 better Return On Assets (2.18%) than 74.19% of its industry peers.
The Return On Equity of GEV (13.02%) is better than 83.87% of its industry peers.
With a decent Return On Invested Capital value of 3.16%, GEV is doing good in the industry, outperforming 67.74% 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
The Profit Margin of GEV (3.16%) is better than 75.27% of its industry peers.
GEV's Operating Margin of 2.67% is fine compared to the rest of the industry. GEV outperforms 66.67% of its industry peers.
The Gross Margin of GEV (18.47%) is worse than 60.22% of its industry peers.
In the last couple of years the Gross Margin of GEV has grown nicely.
| 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.
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 3.11. This indicates that GEV is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GEV (3.11) is better than 62.37% 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 | 3.11 |
ROIC/WACC0.36
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.03 indicates that GEV should not have too much problems paying its short term obligations.
With a Current ratio value of 1.03, GEV is not doing good in the industry: 68.82% of the companies in the same industry are doing better.
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.
GEV has a Quick ratio of 0.74. This is in the lower half of the industry: GEV underperforms 66.67% 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.
GEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.45%.
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
Based on estimates for the next years, GEV will show a very strong growth in Earnings Per Share. The EPS will grow by 109.89% on average per year.
Based on estimates for the next years, GEV will show a quite strong growth in Revenue. The Revenue will grow by 8.94% on average per year.
EPS Next Y278.06%
EPS Next 2Y153.56%
EPS Next 3Y109.89%
EPS Next 5YN/A
Revenue Next Year5.97%
Revenue Next 2Y7.77%
Revenue Next 3Y8.94%
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
A Price/Earnings ratio of 150.88 indicates a quite expensive valuation of GEV.
Based on the Price/Earnings ratio, GEV is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.53. GEV is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 47.29, the valuation of GEV can be described as expensive.
65.59% of the companies in the same industry are more expensive than GEV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.04. GEV is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 150.88 | ||
| Fwd PE | 47.29 |
4.2 Price Multiples
GEV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GEV is cheaper than 65.59% 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 69.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.52 | ||
| EV/EBITDA | 77.79 |
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 109.89% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y153.56%
EPS Next 3Y109.89%
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 3.06.
With a Dividend Yield of 0.16, GEV pays less dividend than the S&P500 average, which is at 2.40.
| 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%
602
-13.95 (-2.26%)
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 Change-3.48%
Market Cap163.88B
Analysts76.84
Price Target662.78 (10.1%)
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)1.26%
PT rev (3m)39.52%
EPS NQ rev (1m)2%
EPS NQ rev (3m)4.94%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)7.82%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 150.88 | ||
| Fwd PE | 47.29 | ||
| P/S | 4.48 | ||
| P/FCF | 60.52 | ||
| P/OCF | 45.83 | ||
| P/B | 18.46 | ||
| P/tB | 45.4 | ||
| EV/EBITDA | 77.79 |
EPS(TTM)3.99
EY0.66%
EPS(NY)12.73
Fwd EY2.11%
FCF(TTM)9.95
FCFY1.65%
OCF(TTM)13.14
OCFY2.18%
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 | 3.11 |
F-Score5
WACC8.68%
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 Year5.97%
Revenue Next 2Y7.77%
Revenue Next 3Y8.94%
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