GE Vernova (GEV) Stock Analysis
This is a peer-relative look at GE Vernova (GEV): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | GEV |
|---|---|
| Name | GE Vernova Inc. |
| Country/Region | United States |
| GICS Sector | Industrials |
| GICS Industry Group | Capital Goods |
| GICS Industry | Electrical Equipment |
| GICS Sub-Industry | Heavy Electrical Equipment |
| Market Capitalization | 289.90 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 27, 2024 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: GEV | Industry group median |
|---|---|---|
| Total Return (1Y) | 91.07% | 20.73% |
| Total Return (3Y, Annualized) | -- | 16.65% |
| Total Return (5Y, Annualized) | -- | 10.84% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: GEV | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 52.12% | 42.81% |
| Beta (5Y) | 0.99 | 1.20 |
| Max Drawdown (5Y) | -38.29% | -48.46% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: GEV | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 1.67 | 0.38 |
| Sortino Ratio (1Y) | 2.77 | 0.58 |
Profitability
ROE (TTM)
GE Vernova (GEV) posts ROE of 75.71%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.
GEV
Capital Goods industry group
75.71%
Group distribution
- GEV
- 75.71%
- Max
- 42.07%
- Q3
- 19.97%
- Median
- 11.35%
- Q1
- 3.35%
- Min
- -19.79%
Largest peers
- BA
- 169.95%
- GEV
- 75.71%
- CAT
- 51.33%
- GE
- 48.23%
- ETN
- 20.85%
- DE
- 18.35%
- RTX
- 11.57%
Net Margin (TTM)
GE Vernova (GEV) keeps 23.81% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
GEV
Capital Goods industry group
23.81%
Group distribution
- Max
- 24.69%
- GEV
- 23.81%
- Q3
- 11.54%
- Median
- 5.80%
- Q1
- 0.73%
- Min
- -13.94%
Largest peers
- GEV
- 23.81%
- GE
- 17.72%
- ETN
- 13.99%
- CAT
- 13.33%
- DE
- 10.10%
- RTX
- 8.03%
- BA
- 2.46%
Operating Margin (TTM)
GE Vernova (GEV) turns 5.46% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
GEV
Capital Goods industry group
5.46%
Group distribution
- Max
- 29.84%
- Q3
- 16.03%
- Median
- 8.69%
- GEV
- 5.46%
- Q1
- 1.95%
- Min
- -17.50%
Largest peers
- GE
- 20.57%
- CAT
- 18.18%
- DE
- 17.48%
- ETN
- 16.11%
- RTX
- 13.18%
- GEV
- 5.46%
- BA
- 1.72%
Profitability Metrics
| Metric | Current stock: GEV | Industry group median |
|---|---|---|
| ROE (TTM) | 75.71% | 11.35% |
| ROA (TTM) | 2.38% | 5.15% |
| Net Margin (TTM) | 23.81% | 5.80% |
| Operating Margin (TTM) | 5.46% | 8.69% |
| Gross Margin (TTM) | 20.28% | 29.71% |
Growth
Revenue Growth
GE Vernova (GEV) grew revenue 8.97%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
GE Vernova (GEV) grew earnings per share 217.03%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.
Growth Metrics
| Metric | Current stock: GEV | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 8.97% | 8.06% |
| Revenue Growth (3Y CAGR) | 8.68% | 6.41% |
| EPS Growth (YoY) | 217.03% | 4.71% |
| EPS Growth (3Y CAGR) | -- | 5.63% |
Financial Strength
Current Ratio (MRQ)
GE Vernova (GEV) has current ratio of 0.89, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
GEV
Capital Goods industry group
0.89
Group distribution
- Max
- 5.24
- Q3
- 2.97
- Median
- 2.12
- Q1
- 1.45
- GEV
- 0.89
- Min
- 0.71
Largest peers
- DE
- 2.21
- CAT
- 1.35
- ETN
- 1.19
- BA
- 1.18
- RTX
- 1.02
- GE
- 0.98
- GEV
- 0.89
Debt / Equity (MRQ)
GE Vernova (GEV) has debt-to-equity ratio of 0.25, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.
GEV
Capital Goods industry group
0.25
Group distribution
- Max
- 2.31
- Q3
- 1.10
- Median
- 0.63
- Q1
- 0.28
- GEV
- 0.25
- Min
- 0.00
Largest peers
- BA
- 8.29
- DE
- 3.76
- CAT
- 2.31
- GE
- 1.13
- ETN
- 1.10
- RTX
- 0.57
- GEV
- 0.25
Financial Strength Metrics
| Metric | Current stock: GEV | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.89 | 2.12 |
| Debt / Equity (MRQ) | 0.25 | 0.63 |
| Net Debt / EBITDA | -1.76 | 2.03 |
Dividends
Dividend Yield (TTM)
GE Vernova (GEV) has dividend yield of 0.14%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
GEV
Capital Goods industry group
0.14%
Group distribution
- Max
- 2.64%
- Q3
- 1.06%
- GEV
- 0.14%
- Median
- 0.14%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 1.40%
- DE
- 1.11%
- ETN
- 1.05%
- CAT
- 0.70%
- GE
- 0.49%
- GEV
- 0.14%
- BA
- 0.00%
Dividend Payout Ratio (TTM)
GE Vernova (GEV) has payout ratio of 5.11%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
GEV
Capital Goods industry group
5.11%
Group distribution
- Max
- 72.02%
- Q3
- 29.57%
- Median
- 6.31%
- GEV
- 5.11%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 51.03%
- ETN
- 41.29%
- DE
- 36.71%
- CAT
- 29.58%
- GE
- 19.58%
- GEV
- 5.11%
- BA
- 0.00%
Dividend Metrics
| Metric | Current stock: GEV | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.14% | 0.14% |
| Dividend Payout Ratio (TTM) | 5.11% | 6.31% |
Valuation
P/E Ratio (TTM)
GE Vernova (GEV) trades at P/E ratio of 31.54, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
GEV
Capital Goods industry group
31.54
Group distribution
- Max
- 77.51
- Q3
- 46.30
- Median
- 31.73
- GEV
- 31.54
- Q1
- 22.49
- Min
- 1.06
Largest peers
- BA
- 82.58
- CAT
- 43.10
- GE
- 40.32
- ETN
- 39.20
- RTX
- 36.47
- DE
- 33.21
- GEV
- 31.54
P/S Ratio (TTM)
GE Vernova (GEV) trades at 7.36 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
GEV
Capital Goods industry group
7.36
Group distribution
- Max
- 9.90
- GEV
- 7.36
- Q3
- 4.82
- Median
- 2.65
- Q1
- 1.27
- Min
- 0.05
Largest peers
- GEV
- 7.36
- GE
- 6.98
- CAT
- 5.79
- ETN
- 5.49
- DE
- 3.35
- RTX
- 2.89
- BA
- 1.75
P/B Ratio (MRQ)
GE Vernova (GEV) trades at 20.82 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
GEV
Capital Goods industry group
20.82
Group distribution
- GEV
- 20.82
- Max
- 12.69
- Q3
- 6.34
- Median
- 3.69
- Q1
- 2.01
- Min
- -4.34
Largest peers
- BA
- 26.98
- CAT
- 21.97
- GEV
- 20.82
- GE
- 19.69
- ETN
- 7.93
- DE
- 5.78
- RTX
- 3.94
Valuation Metrics
| Metric | Current stock: GEV | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 31.54 | 31.73 |
| P/S Ratio (TTM) | 7.36 | 2.65 |
| P/B Ratio (MRQ) | 20.82 | 3.69 |
| Free Cash Flow Yield (TTM) | 3.21% | 2.18% |