GE Vernova Inc.
GE Vernova Inc. Fundamental Analysis
GE Vernova Inc. (GEV) shows moderate financial fundamentals with a PE ratio of 31.01, profit margin of 23.81%, and ROE of 87.98%. The company generates $39.3B in annual revenue with moderate year-over-year growth of 8.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze GEV's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGEV demonstrates superior asset utilization.
Valuation Score
ModerateGEV shows balanced valuation metrics.
Growth Score
ModerateGEV shows steady but slowing expansion.
Financial Health Score
ModerateGEV shows balanced financial health with some risks.
Profitability Score
ExcellentGEV achieves industry-leading margins.
Key Financial Metrics
Is GEV Expensive or Cheap?
P/E Ratio
GEV trades at 31.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GEV's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values GE Vernova Inc. at 20.88 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 89.59 times EBITDA. This signals the market has high growth expectations.
How Well Does GEV Make Money?
Net Profit Margin
For every $100 in sales, GE Vernova Inc. keeps $23.81 as profit after all expenses.
Operating Margin
Core operations generate 3.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $87.98 in profit for every $100 of shareholder equity.
ROA
GE Vernova Inc. generates $12.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GE Vernova Inc. produces operating cash flow of $9.01B, showing steady but balanced cash generation.
Free Cash Flow
GE Vernova Inc. generates strong free cash flow of $7.52B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $27.98 in free cash annually.
FCF Yield
GEV converts 2.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.009
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.88
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How GEV Stacks Against Its Sector Peers
| Metric | GEV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.01 | 20.42 | Worse (Expensive) |
| ROE | 87.98% | 900.00% | Weak |
| Net Margin | 23.81% | 724.00% | Weak |
| Debt/Equity | 0.21 | 1.46 | Strong (Low Leverage) |
| Current Ratio | 0.86 | 1.30 | Weak Liquidity |
| ROA | 12.40% | -4801.00% (disorted) | Strong |
GEV outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GE Vernova Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.37%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
871.80%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
400.57%
Industry Style: Defensive, Dividend, Income
High Growth