GE VERNOVA INC (GEV) Stock Fundamental Analysis
NYSE:GEV - New York Stock Exchange, Inc. - US36828A1016 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GEV. GEV was compared to 96 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
In the past year GEV was profitable.
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 3.75%, GEV belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.
GEV has a Return On Equity of 22.49%. This is amongst the best in the industry. GEV outperforms 92.71% of its industry peers.
GEV has a better Return On Invested Capital (3.78%) than 67.71% 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
Looking at the Profit Margin, with a value of 5.42%, GEV belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
GEV's Operating Margin of 3.21% is fine compared to the rest of the industry. GEV outperforms 67.71% of its industry peers.
With a Gross Margin value of 18.51%, GEV perfoms like the industry average, outperforming 48.96% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GEV 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 2.50 indicates that GEV is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.50, GEV is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 | 2.5 |
ROIC/WACC0.42
WACC9.1%
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 has a Current ratio of 1.04. This is in the lower half of the industry: GEV underperforms 77.08% 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.
The Quick ratio of GEV (0.76) is worse than 68.75% 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.
GEV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.03%.
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)870.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%321.95%
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 96.47% on average per year.
GEV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.55% yearly.
EPS Next Y230.02%
EPS Next 2Y133.33%
EPS Next 3Y96.47%
EPS Next 5YN/A
Revenue Next Year5.17%
Revenue Next 2Y6.98%
Revenue Next 3Y8.55%
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
Based on the Price/Earnings ratio of 131.16, the valuation of GEV can be described as expensive.
Based on the Price/Earnings ratio, GEV is valued a bit cheaper than 65.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.85. GEV is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 40.15 indicates a quite expensive valuation of GEV.
GEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GEV is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, GEV is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 131.16 | ||
| Fwd PE | 40.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEV is valued a bit cheaper than 63.54% of the companies in the same industry.
71.88% of the companies in the same industry are more expensive than GEV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.66 | ||
| EV/EBITDA | 48.51 |
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.
GEV's earnings are expected to grow with 96.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y133.33%
EPS Next 3Y96.47%
5. Dividend
5.1 Amount
GEV has a yearly dividend return of 0.25%, which is pretty low.
GEV's Dividend Yield is a higher than the industry average which is at 5.05.
With a Dividend Yield of 0.25, GEV pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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 Years0
5.3 Sustainability
DPN/A
EPS Next 2Y133.33%
EPS Next 3Y96.47%
432.84
-0.49 (-0.11%)
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 Change27.75%
Market Cap118.14B
Analysts81.67
Price Target412.9 (-4.61%)
Short Float %2.22%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.3%
Min EPS beat(2)-42.37%
Max EPS beat(2)122.98%
EPS beat(4)2
Avg EPS beat(4)10.15%
Min EPS beat(4)-77.43%
Max EPS beat(4)122.98%
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)-2.32%
PT rev (3m)-4.42%
EPS NQ rev (1m)1.18%
EPS NQ rev (3m)0.58%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)1.44%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 131.16 | ||
| Fwd PE | 40.15 | ||
| P/S | 3.31 | ||
| P/FCF | 34.66 | ||
| P/OCF | 27.73 | ||
| P/B | 13.73 | ||
| P/tB | 34.08 | ||
| EV/EBITDA | 48.51 |
EPS(TTM)3.3
EY0.76%
EPS(NY)10.78
Fwd EY2.49%
FCF(TTM)12.49
FCFY2.88%
OCF(TTM)15.61
OCFY3.61%
SpS130.83
BVpS31.54
TBVpS12.7
PEG (NY)0.57
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 | 2.5 |
F-Score7
WACC9.1%
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%321.95%
EPS Next Y230.02%
EPS Next 2Y133.33%
EPS Next 3Y96.47%
EPS Next 5YN/A
Revenue 1Y (TTM)6.03%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%10.63%
Revenue Next Year5.17%
Revenue Next 2Y6.98%
Revenue Next 3Y8.55%
Revenue Next 5YN/A
EBIT growth 1Y532.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year307.67%
EBIT Next 3Y100.19%
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