GE VERNOVA INC (GEV) Stock Fundamental Analysis
USA - NYSE:GEV - US36828A1016 - Common Stock
625.55 USD
-8.6 (-1.36%)
625.55 USD
0 (0%)
GEV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 92 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
In the past year GEV was profitable.
GEV had a positive operating cash flow in the past year.
1.2 Ratios
The Return On Assets of GEV (2.18%) is better than 73.91% of its industry peers.
With an excellent Return On Equity value of 13.02%, GEV belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
GEV has a better Return On Invested Capital (3.16%) than 67.39% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 3.16%, GEV is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
With a decent Operating Margin value of 2.67%, GEV is doing good in the industry, outperforming 66.30% of the companies in the same industry.
GEV has a worse Gross Margin (18.47%) than 60.87% of its industry peers.
GEV's Gross Margin has improved in the last couple of years.
| 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.
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
GEV has an Altman-Z score of 3.14. This indicates that GEV is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GEV (3.14) is better than 66.30% 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 | 3.14 |
ROIC/WACC0.36
WACC8.71%
2.3 Liquidity
GEV has a Current Ratio of 1.03. 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 1.03. This is in the lower half of the industry: GEV underperforms 69.57% of its industry peers.
A Quick Ratio of 0.74 indicates that GEV may have some problems paying its short term obligations.
GEV has a worse Quick ratio (0.74) than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
GEV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.60%.
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
GEV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 108.68% yearly.
GEV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.08% yearly.
EPS Next Y278.54%
EPS Next 2Y154.18%
EPS Next 3Y108.68%
EPS Next 5YN/A
Revenue Next Year6.02%
Revenue Next 2Y7.94%
Revenue Next 3Y9.08%
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 156.78, the valuation of GEV can be described as expensive.
Based on the Price/Earnings ratio, GEV is valued a bit cheaper than 65.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. GEV is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 48.90, the valuation of GEV can be described as expensive.
68.48% of the companies in the same industry are more expensive than GEV, based on the Price/Forward Earnings ratio.
GEV is valuated expensively when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 156.78 | ||
| Fwd PE | 48.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GEV indicates a somewhat cheap valuation: GEV is cheaper than 64.13% of the companies listed in the same industry.
69.57% 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 | 62.88 | ||
| EV/EBITDA | 79.06 |
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 108.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y154.18%
EPS Next 3Y108.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, GEV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.30, GEV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, 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 2Y154.18%
EPS Next 3Y108.68%
625.55
-8.6 (-1.36%)
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 Change4.46%
Market Cap170.29B
Analysts76.32
Price Target658.62 (5.29%)
Short Float %2.54%
Short Ratio2.39
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)4.02%
PT rev (3m)43.76%
EPS NQ rev (1m)-1.3%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)7.96%
EPS NY rev (3m)8.13%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 156.78 | ||
| Fwd PE | 48.9 | ||
| P/S | 4.65 | ||
| P/FCF | 62.88 | ||
| P/OCF | 47.62 | ||
| P/B | 19.18 | ||
| P/tB | 47.17 | ||
| EV/EBITDA | 79.06 |
EPS(TTM)3.99
EY0.64%
EPS(NY)12.79
Fwd EY2.04%
FCF(TTM)9.95
FCFY1.59%
OCF(TTM)13.14
OCFY2.1%
SpS134.51
BVpS32.61
TBVpS13.26
PEG (NY)0.56
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 | 3.14 |
F-Score5
WACC8.71%
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 Y278.54%
EPS Next 2Y154.18%
EPS Next 3Y108.68%
EPS Next 5YN/A
Revenue 1Y (TTM)8.45%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%11.06%
Revenue Next Year6.02%
Revenue Next 2Y7.94%
Revenue Next 3Y9.08%
Revenue Next 5YN/A
EBIT growth 1Y72.61%
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