GE VERNOVA INC (GEV) Stock Fundamental Analysis
NYSE:GEV - New York Stock Exchange, Inc. - US36828A1016 - Common Stock - Currency: USD
GEV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 94 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.
In the past year GEV had a positive cash flow from operations.
1.2 Ratios
GEV has a Return On Assets of 3.75%. This is in the better half of the industry: GEV outperforms 79.79% of its industry peers.
The Return On Equity of GEV (22.49%) is better than 92.55% of its industry peers.
With a decent Return On Invested Capital value of 3.78%, GEV is doing good in the industry, outperforming 70.21% of the companies in the same industry.
| 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 is in the better half of the industry, outperforming 79.79% of the companies in the same industry.
Looking at the Operating Margin, with a value of 3.21%, GEV is in the better half of the industry, outperforming 69.15% of the companies in the same industry.
Looking at the Gross Margin, with a value of 18.51%, GEV is in line with its industry, outperforming 44.68% of the companies in the same 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.
GEV has a better debt/assets ratio than last year.
2.2 Solvency
GEV has an Altman-Z score of 2.82. 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.
Looking at the Altman-Z score, with a value of 2.82, GEV is in the better half of the industry, outperforming 64.89% of the companies in the same industry.
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 | 2.82 |
ROIC/WACC0.38
WACC9.9%
2.3 Liquidity
A Current Ratio of 1.04 indicates that GEV should not have too much problems paying 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
GEV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 870.31%, which is quite impressive.
Looking at the last year, GEV shows a small growth in Revenue. The Revenue has grown by 6.03% in the last year.
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%307.32%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%10.63%
3.2 Future
GEV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 101.72% yearly.
GEV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.06% yearly.
EPS Next Y243.9%
EPS Next 2Y140.03%
EPS Next 3Y101.73%
EPS Next 5YN/A
Revenue Next Year5.27%
Revenue Next 2Y7.19%
Revenue Next 3Y8.06%
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
GEV is valuated quite expensively with a Price/Earnings ratio of 159.58.
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.
GEV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 45.32 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 67.02% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, GEV is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 159.58 | ||
| Fwd PE | 45.32 |
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 65.96% of the companies listed in the same industry.
72.34% 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 | 41.41 | ||
| EV/EBITDA | 58.57 |
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 101.72% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y140.03%
EPS Next 3Y101.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, GEV is not a good candidate for dividend investing.
GEV's Dividend Yield is a higher than the industry average which is at 4.40.
With a Dividend Yield of 0.20, GEV pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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 2Y140.03%
EPS Next 3Y101.73%
517.04
+11.97 (+2.37%)
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 Cap141.12B
Analysts79.43
Price Target475.05 (-8.12%)
Short Float %2.2%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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)15.05%
PT rev (3m)9.97%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)4.96%
EPS NY rev (1m)-1.77%
EPS NY rev (3m)4.15%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 159.58 | ||
| Fwd PE | 45.32 | ||
| P/S | 3.95 | ||
| P/FCF | 41.41 | ||
| P/OCF | 33.13 | ||
| P/B | 16.4 | ||
| P/tB | 40.71 | ||
| EV/EBITDA | 58.57 |
EPS(TTM)3.24
EY0.63%
EPS(NY)11.41
Fwd EY2.21%
FCF(TTM)12.49
FCFY2.42%
OCF(TTM)15.61
OCFY3.02%
SpS130.83
BVpS31.54
TBVpS12.7
PEG (NY)0.65
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 | 2.82 |
F-Score7
WACC9.9%
ROIC/WACC0.38
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 Y243.9%
EPS Next 2Y140.03%
EPS Next 3Y101.73%
EPS Next 5YN/A
Revenue 1Y (TTM)6.03%
Revenue growth 3Y1.91%
Revenue growth 5YN/A
Sales Q2Q%10.63%
Revenue Next Year5.27%
Revenue Next 2Y7.19%
Revenue Next 3Y8.06%
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