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 4 out of 10 to GEV. GEV was compared to 93 industry peers in the Electrical Equipment industry. GEV has only an average score on both its financial health and profitability. 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.
GEV had a positive operating cash flow in the past year.
1.2 Ratios
GEV has a Return On Assets of 3.75%. This is in the better half of the industry: GEV outperforms 79.57% of its industry peers.
GEV has a better Return On Equity (22.49%) than 92.47% of its industry peers.
GEV's Return On Invested Capital of 3.78% is fine compared to the rest 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 Profit Margin of 5.42%. This is in the better half of the industry: GEV outperforms 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 68.82% of the companies in the same industry.
The Gross Margin of GEV (18.51%) is comparable to the rest of the industry.
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.
The number of shares outstanding for GEV has been increased compared to 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 3.30 indicates that GEV is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.30, GEV is doing good in the industry, outperforming 65.59% 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 | 3.3 |
ROIC/WACC0.42
WACC9.05%
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 69.89% of its industry peers.
A Quick Ratio of 0.76 indicates that GEV may have some problems paying its short term obligations.
The Quick ratio of GEV (0.76) is worse than 63.44% 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 446.75% over the past year.
GEV shows a small growth in Revenue. In the last year, the Revenue has grown by 5.10%.
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
Based on estimates for the next years, GEV will show a very strong growth in Earnings Per Share. The EPS will grow by 102.52% 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 8.01% on average per year.
EPS Next Y250.64%
EPS Next 2Y140.1%
EPS Next 3Y102.52%
EPS Next 5YN/A
Revenue Next Year5.31%
Revenue Next 2Y7.12%
Revenue Next 3Y8.01%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 161.55, the valuation of GEV can be described as expensive.
GEV's Price/Earnings ratio is a bit cheaper when compared to the industry. GEV is cheaper than 66.67% of the companies in the same industry.
GEV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.05.
A Price/Forward Earnings ratio of 56.47 indicates a quite expensive valuation of GEV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GEV indicates a somewhat cheap valuation: GEV is cheaper than 65.59% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GEV to the average of the S&P500 Index (37.67), we can say GEV is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161.55 | ||
| Fwd PE | 56.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GEV is valued a bit cheaper than the industry average as 65.59% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GEV is valued a bit cheaper than the industry average as 69.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.62 | ||
| EV/EBITDA | 73.9 |
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)0.64
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 3.72.
Compared to an average S&P500 Dividend Yield of 2.30, 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 2Y140.1%
EPS Next 3Y102.52%
644.59
+20.62 (+3.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners78.65%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner Change37.03%
Market Cap175.93B
Analysts78.33
Price Target521.4 (-19.11%)
Short Float %2.27%
Short Ratio2.02
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)9.76%
PT rev (3m)26.58%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)7.52%
EPS NY rev (1m)1.96%
EPS NY rev (3m)6.25%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161.55 | ||
| Fwd PE | 56.47 | ||
| P/S | 4.93 | ||
| P/FCF | 51.62 | ||
| P/OCF | 41.3 | ||
| P/B | 20.44 | ||
| P/tB | 50.76 | ||
| EV/EBITDA | 73.9 |
EPS(TTM)3.99
EY0.62%
EPS(NY)11.41
Fwd EY1.77%
FCF(TTM)12.49
FCFY1.94%
OCF(TTM)15.61
OCFY2.42%
SpS130.83
BVpS31.54
TBVpS12.7
PEG (NY)0.64
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 | 3.3 |
F-Score7
WACC9.05%
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 Year5.31%
Revenue Next 2Y7.12%
Revenue Next 3Y8.01%
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